TDWT826785 1202..1213 Grid-connected distributed energy generation system planning and scheduling W.S. Ho, H.Y. Chin, K.C. Wong, Z.A. Muis, H. Hashim* Process Systems Engineering Centre (PROSPECT), Faculty of Chemical Engineering, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia Tel. +60 7 5535478; Fax: +60 7 5588166; email: haslenda@cheme.utm.my Received 19 March 2013; Accepted 1 April 2013 A B S T R A C T Conservation of fossil fuel energy, energy management (peak shaving), energy economic and pollution of energy sector has been among the recent topics of discussion. This paper examines possibilities of achieving the said topics through an integrated energy system also known as distributed energy system (DES) consisting of renewable energy and energy storage devices. With aim to minimise system cost while abiding to carbon footprint reduction target and pollutant emissions limit, a mixed integer linear programming model is developed for optimisation and planning of a DES. Universiti Teknologi Malaysia, in planning to become an eco-campus, is taken as a case study for this research work. The model reveals that with a target of 40% carbon footprint reduction and 30 tonne of total nitrogen oxides emissions (in a year), an annual cost of 5,687,000 $/y is required, achieving a reduction of 17.3%. Keywords: Distributed energy system (DES); Energy storage (ES); Carbon footprint; Nitrogen oxides (NOx); Renewable energy (RE); Mixed integer linear programming (MILP) 1. Introduction Fossil fuels are the main element that drives our economy today. Unfortunately, our dependency on the world petroleum and natural gas reserve leads to energy crisis which subsequently causes increasing price of daily groceries, fuels and especially electricity bills, affecting mostly the end users, residential, com- mercial and industrial users alike. In order to be less affected by the fluctuating price of global fossil fuels, users can consider producing power through renew- able energy (RE) resources incorporated with load shifting strategy (through energy storage (ES) devices) for better efficient energy utilisation and management through a distributed energy generation (DEG) system [1–4]. In fact, load shifting can solely be implemented on a grid-connected energy system without local energy production, to reduce the overall cost of electricity although increases in energy consumption may be expected due to compensation of energy losses during current inversion and charging/discharging of energy in and out of ES [5]. As for local RE systems, ES benefits the system by balancing out and distributes energy produced by intermittent resources such as *Corresponding author. Presented at the Fifth Annual International Conference on “Challenges in Environmental Science & Engineering—CESE 2012” Melbourne, Australia, 9–13 September 2012 1944-3994/1944-3986 � 2013 Balaban Desalination Publications. All rights reserved. Desalination and Water Treatment www.deswater.com doi: 10.1080/19443994.2013.826785 52 (2014) 1202–1213 January