Microgrid Operation Cost Analysis Paper

What is a microgrid cost model?

The National Renewable Energy Laboratory was commissioned by the U.S. Department of Energy to complete a microgrid cost study and develop a microgrid cost model. The goal of this study is to elucidate the variables that have the highest impact on costs as well as potential areas for cost reduction. This study consists of two phases.

What is the DOE's microgrid cost study?

The U.S. Department of Energy’s (DOE’s) microgrid cost study is identifying the costs of components, integration, and installation of U.S. microgrids; project cost improvements; and technical accelerators during the next 5 years and beyond.

How does microgrid optimization work?

With this technique, the local demand is reduced from the microgrid, thereby reducing the total system cost. The optimization method also controls the market price based on the energy demand of baseload and peak load.

Why is economic analysis important in microgrid operations and sizing?

Economic analysis is an important tool in evaluating the performances of microgrid (MG) operations and sizing. Optimization techniques are required for operating and sizing an MG as economically as possible. Various optimization approaches are applied to MGs, which include classic and artificial intelligence techniques.

How to reduce the cost of a microgrid system?

In a standalone microgrid system, prolonging the life of the equipment is necessary to reduce the cost of its replacement. However, the size and installation costs of the storage systems must be appropriate. Therefore, this paper provides an appropriate weighting to minimize the cost of the microgrid system.

What is a micro grid optimization algorithm?

An Optimization algorithm is developed to attenuate the operating cost of micro grid. The cost function is dependent not only the utility power but also the real time pricing. A six-bus system without losses and with losses is tested to authenticate the considered algorithm.