Economic analysis of efficient operation algorithm of stand-alone microgrid

Abstract

Background/Objectives: Recently, the introduction of microgrid(MG) is being extended to the islands and pilot areas. In previous researches, we designed an efficient operation algorithm for stand-alone MG. The purpose of this paper is to verify the economical feasibility of the algorithm. Methods/Statistical analysis: In this paper, we used HOMER PRO and actual MG operational data. Two scenarios constructed based on applying or not the algorithm. In HOMER Pro, the same parameters entered and only the operating conditions of the diesel generator, BESS varied. This paper does not merely derive a generator combination for optimal operation of MG. The purpose of the analysis is to analyze the economic feasibility of the algorithm. Findings: The economic feasibility of applying the algorithm was analyzed under the condition that renewable energy generation capacity does not exceed the load. HOMER Pro presents optimal combination of MG according to input variables and condition setting. Therefore, HOMER PRO simulation was carried out according to whether the algorithm was applied or not, and the results for the same optimal combination were selected. And, the economics derived from the selected combinations were compared and analyzed. In the case of the scenario where the algorithm is applied, the diesel generator is operated at an optimal power ratio of 60~80%, and BESS is operated within the set SOC range (average 42.5%). As a result, when the algorithm is not applied, the COE is 1.87 ~ 12.09 $ and the applied COE is as 1.71 ~ 2.61 $. In other words, when the MG is operated by applying the algorithm, it can save about COE 0.16 ~ 9.48 $. Improvements/Applications: In the next research, we will apply the algorithm to area where the amount of renewable energy is abundant, and conduct the economic analysis. This will confirm the validity of the algorithm in various situations.