Datacenter Microgrids: Cost-Emissions-Reliability Frontier Across U.S. RTOs

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@article{1710910,
      author = {Japhet Dalokhule Muchenje, Munashe Naphtali Mupa, Mukudzeishe Wendell Merit Mupa, Daniel Nayo, Tracey Homwe},
      title = {Datacenter Microgrids: Cost-Emissions-Reliability Frontier Across U.S. RTOs},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {3},
      pages = {1509-1517},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1710910.pdf},
      abstract = {This study proposes a complete mixed-integer optimization framework of data center microgrids This paper presents a full mixed-integer optimization model of the data center microgrids that maximizes the photovoltaic (PV) systems, wind generation, battery energy storage systems (BESS) sizing, and hourly electricity market transactions to streamline the levelized costs under the restriction of the emissions intensity and loss-of-load probability (LOLP). The optimization framework considers the intricate nature of the connections between the variability of renewable generation, energy storage, and electricity markets through sophisticated modeling techniques. It also takes into account such realistic limitations as battery degradation, transmission and interconnection. Comparison of Seven Major U.S. Information types. Local Transmission Organizations (RTOs): ERCOT, PJM, CAISO, MISO, SPP, NYISO, and ISO-NE that cover interzonal resource profiles by using high resolution weather, historic curtailment trends caused by grid integration, and multi-year nodal price volatility in the course of market operation. The paper applies stochastic optimization methods and Monte Carlo simulations to solve uncertainties in the production of renewable generation, electricity costs, and extreme weather conditions such that the structures of the microgrids are resilient to such uncertainties. The findings indicate that the best microgrid designs differ significantly across regions with results in CAISO and ERCOT generating the lowest cost-emissions and cost-reliability frontiers. This is explained by their essentially better renewable resources, as well as good regulatory environment. Moreover, the market structure in both regions is established, which gives the economic indication that will give the clear signal on investment in the energy resources that are distributed locally.},
      keywords = {Data centers, microgrids, renewable energy, optimization, reliability, emissions},
      month = {September},
  }