Application of Power System Economic Metrics to a Microgrid with Storage and Renewables

Abstract

Interest in multisource microgrids is becoming more prevalent in areas without access to grid power. Many of these areas are currently served by groups of diesel generators. However, the high capital cost of storage and renewable sources makes the initial investment in multisource microgrids frightening. This work is interested in examining the factors that can make a difference in whether or not these additional investments will reduce the total cost of ownership. To do so, this work uses the load and generation profiles of the MEHPS microgrid - a well-defined remote microgrid - and adds in the renewable resources of interest, solar, and storage in order to analyze the cost of the additions. This work takes multiple variables that could have an effect on the final total cost of ownership into consideration, including the price of fuel, price of PV panels, price of batteries, location of installation of the microgrid, cost of pollution, duration of installation, and cost of capital. All of these factors are considered in order to suggest what will make a difference to whether or not additional investments will reduce the total cost of ownership. The results of this work offer suggestions to those planning to deploy multisource microgrid systems in remote areas around the world.