Economic Value Evaluation of Microgrid

How to determine the economic performance of microgrid system?

For economic performance of microgrid system, the load demand forecasts are needed to determine the future DER generation and fuel requirements with their NPC. After evaluating the economic dispatch scheduling of the microgrid system, the NPC analysis is illustrated in Fig. 15.

Does a microgrid installation benefit from economies of scale?

Economies of scale While making a commercial decision regarding renewable energy microgrid installation, the life cycle cost is not the only concern;whether an installation can benefit from economies of scale is also critical. The effect of savings due to economies of scale is usually measured by the economies of the scale factor.

Is there a deficiency in microgrid valuation?

Nevertheless, even in US states such as New York and California, which are recognized as leaders in microgrid development, there is a third deficiency in microgrid valuation: the quantification of social benefits associated with microgrid development.

How much does a microgrid cost?

The investment cost and operating cost are calculated to be2135 USD/kW and 0.066 USD/kWh respectively, both figures being higher than those of pulverized-coal and natural gas. It is projected that by 2025 the costs of renewable energy microgrids will begin to be competitive with non-renewable energy generation.

Do economic analyses of microgrids have a broader focus?

To date, economic analyses of microgrids have adopted a broader focus, mainly due to greater data availability.

Why are microgrids difficult to commercially evaluate?

Microgrids have seen as challenging to commercially evaluate for several reasons. Firstly,a microgrid represents a series of assets and infrastructure that come from different value streams, and during operation, a microgrid may go through several phases (generation, control, independence) but these phases are not distinct and often overlap .