Microgrid cost constraint confidence

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 are the technical constraints in microgrids?

The operational constraints are another cluster of technical constraints in microgrids. They include power balance, reserve limits, fuel usage and limits of ESSs to sustain uninterrupted power supply and safety of the devices. Power balance constraint is the primary prerequisite of any power system and therefore, it is used in almost all studies.

What are RM and or constraints in microgrids?

The OR and reserve margin (RM) constraints are contingency reserves used to meet the demand in case of an unexpected generator failure, thus ensuring a reliable power supply [ 26, 159, 162, 163 ]. The unit commitment is another crucial operational constraint for optimising the use of generators in microgrids.

What percentage of microgrid costs are soft costs?

Soft costs, which include interconnection, financing, engineering, procurement, and construction management, range from 0.4%–1.6% of total microgrid costs, as shown in Figure 24. Figure 25 shows the total percentage of soft costs in relation to total microgrid costs.

Are microgrid constraints linear or nonlinear?

The linearity or nonlinearity of these constraints depends on the decision variables and the problem formulation. Moreover, microgrids have unique dynamics with higher penetration of RERs, varying loads and charging/discharging of ESSs. Therefore, the presence of constraints may constantly change.

Are microgrid complexity and component costs related?

In our database, we have limited information about both microgrid complexity level and component costs. Component costs, particularly for conventional generation, represent the largest share (88% for Level 2 and Level 5), leaving limited data for analysis by complexity level.