Design of Prosumer Migrogrid and virtual power plants for multi-tier manufacturing supply chains




Kumar Prabha, Siva Prashanth

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Production, warehousing and logistics activities consume one-third of global electricity. Generation and integration of cleaner energy is an effective way to achieve higher power efficiency and to mitigate greenhouse gas emissions. This research focuses on siting and sizing wind- and solar-based microgrid system in manufacturing supply chain under demand and supply uncertainty. The study treats two-way energy flow as a new feature along with material, information and cash flows in supply chain operations. First, we design a three-tier manufacturing infrastructure for net zero energy performance by integrating wind turbine, photovoltaics, and energy storage under cost minimization. Second, we combined prosumer microgrid and combined heat and power to form virtual power plants (VPP) in pursuit of profit maximization. The proposed method can guide the manufacturing industry in harnessing onsite renewable sources to attain environmental sustainability. The mixed integer linear programming models are solved with A Mathematical Programming Language using CPLEX solver. The feasibility of the energy solution is further examined through numerical experiments in ten US cities based on 11-year hourly meteorological data. The study shows that integrating onsite renewable energy is a key to mitigating environmental impacts, improving energy reliability and manufacturing sustainability. The research also indicates that the adoption of a feed-in tariff, time-of-use rate, prosumer energy trading, and VPP scheme can reduce the utility bills and accelerate the achievement of 100% renewables integration.



Prosumer, Virtual power plants, Supply chains, Microgrid, Renewable energy, Sustainability, Production planning, Zero-carbon


Kumar Prabha, S. P. (2020). <i>Design of Prosumer Migrogrid and virtual powerplants for multi-tier manufacturing supply chains</i> (Unpublished thesis). Texas State University, San Marcos, Texas.


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