Abstract
Microgrids with hybrid renewable energy sources are increasing and it is a promising solution to electrify remote areas where distribution network expansion is not feasible or not economical. Standalone microgrids with environment-friendly hybrid energy sources is a cost-effective solution that ensures system reliability and energy security. This paper determines the optimal capacity, energy dispatching and techno-economic benefits of standalone microgrid in remote area in Tamilnadu, India. Microgrids with hybrid energy sources comprising photovoltaic (PV), wind turbine (WT), battery energy storage system (BESS) and diesel generator (DG) are considered in this paper. Various case studies are implemented with hybrid energy sources and for each case study a comparative analysis of techno-economic benefits is demonstrated. Eight different configurations of hybrid energy sources are modeled with renewable fractions of 50%, 60%, 65%, and 100%, respectively. The optimization analysis is carried out using Hybrid Optimization Model for Electric Renewable (HOMER) software. Impact of demand response is also demonstrated on energy dispatching and techno-economic benefits. Simulation results are obtained for the optimal capacity of PV, WT, DG, converter, and BESS, charging/discharging pattern, state of charge (SOC), net present cost (NPC), cost of energy (COE), initial cost, operation cost, fuel cost, greenhouse gas emission penalty and payback period considering seasonal load variation. It is observed that PV+BESS is the most economical configuration. COE in standalone microgrid is higher than the conventional grid price. The results show that CO2 emissions in hybrid PV+WT+DG+BESS are reduced by about 68% compared with the traditional isolated distribution system with DG.
EVEN though the expansion of generation, transmission and distribution systems are increasing day to day to cater growing electricity demand, as on today approximately 13% of world population has no access to electricity [
A nano-grid was modeled in [
However, associated cost components such as transformer cost, protection & measuring device cost, cable cost, battery degrading cost were not included. In [
It can be observed from the above literature survey that many researchers have focused on techno-economic analysis of microgrid without considering the impact of DR. Further, the potential benefit of DR program was not addressed in their analysis, which is essential for the effective operation of microgrid. The optimal energy dispatching with hybrid energy sources is a challenging task with consideration of load and generation uncertainties, which needs to be considered in the analysis for better system planning. Moreover, a comparative assessment of techno-economic benefits of various hybrid power systems considering DR program and seasonal load variation was not reported yet.
Based on the above research gaps, this paper investigates the optimal sizing of hybrid power system with PV/WT/DG/BESS, energy management, and techno-economic aspects of standalone microgrid. The HOMER software is used to model, simulate and optimize the hybrid power system to minimize COE and net present cost (NPC) subject to providing required operation reserve and reliability constraint of loss of power supply probability (LPSP) in conjunction with minimum excess energy production. In addition to optimal energy dispatching problem, a comparative analysis of techno-economic benefits is demonstrated for standalone microgrid with hybrid energy sources. Eight case studies are performed considering hourly varying seasonal load combination of residential and commercial loads throughout the year. The uncertainty of load demand is modeled using normal distribution function. Moreover, the impact of DR program on energy dispatching and techno-economic implications is also demonstrated. Simulation results are obtained for the optimal capacity of PV, WT, DG, BESS, charging/discharging pattern, state of charge (SOC), COE, NPC, initial cost, operation & maintenance (O&M) cost, fuel cost and payback period.
The estimated electricity consumption is 62039 kWh/year for the project site located far away from the main grid. Major activities of remote area communities include fishing and agriculture. The project site has abundant renewable energy sources of solar and wind. For accurate analysis, the real-time data of solar irradiation and wind velocity at the project site location are taken from National Renewable Energy Laboratory (NREL).
The rest of the paper is organized as follows. The modeling of hybrid power system is presented in Section II. The economic modeling is explained in Section III. The DR program is described in Section IV. Simulation results and discussions are presented in Section V. Finally, conclusions are drawn in Section VI.
The hybrid power system comprising PV/WT/BESS could be an economical solution to produce clean energy to match with time-varying realistic load demand and therefore the unmet energy demand shall be zero at any instant of time. The modeling of each source is explained in subsequent subsections.
The output power of PV array is calculated as:
(1) |
(2) |
The solar irradiation is modeled using the Beta distribution function, as expressed in (3)-(6).
(3) |
(4) |
(5) |
(6) |
The power output from WT is calculated as:
(7) |
(8) |
The wind velocity is modeled using the Weibull distribution function as formulated in (9)-(11).
(9) |
(10) |
(11) |
The integration of renewable generation and electric vehicles to electric grid makes it more difficult to maintain energy balance and can result in large frequency deviations in the microgrid. Ancillary services provide supplementary reserve required to maintain the instantaneous and ongoing balance between sources and loads. BESSs can provide regulating reserve, a type of ancillary service, by modulating active power for frequency control, to reduce frequency deviations caused by sudden changes in renewable generation [
(12) |
The charging and discharge power of BESS shall be less than the nominal capacity of BESS.
(13) |
(14) |
At a particular instant, a BESS can operate in one mode only, i.e., charging or discharging state. As specified in (12), the BESS operates in charging mode during surplus power generation and operates in discharging mode when the demand is more than the generation. The charging and discharging power of BESS is calculated as below.
1) Charging mode:
(15) |
(16) |
2) Discharging mode:
(17) |
(18) |
Converter is required in AC/DC hybrid power systems. The rating of inverter is determined using (19) [
(19) |
The output power of diesel generator (DG) shall be within its upper and lower limits.
(20) |
The net power generation from PV, WT, DG and BESS shall be equal to the total load demand. Therefore, the unmet energy at any time shall be zero.
(21) |
Sudden disturbances of generation and load demands in the power system can initiate a steep fall or rise in the frequency of the power system, which can be detrimental to the power system operation if the disturbances are not cleared immediately. The corrective action shall be taken instantaneously to regulate frequency as per statutory limit by providing real power operation reserve which acts instantaneously with frequency change. The grid operators must have planned the adequate amount of reserve power capacity at strategic locations in the grid to ensure reliable power supply for despite the intermittent nature of renewable power and the uncertainty of load demand.
(22) |
(23) |
In case the load demand is more than the generation, a situation arises that the customer energy demand is not served completely, i.e., there is loss of power supply. The LPSP is a design indicator which measures the probability of unmet energy demand, as given in (24). The formula of the availability of power supply (APS) is given in (25).
(24) |
(25) |
To ensure the reliability, the energy generated shall be greater than energy demand at any instant.
(26) |
The uncertainty of electricity demand is modeled using the normal distribution function [
(27) |
(28) |
The HOMER software [
(29) |
The is determined by:
(30) |
(31) |
The levelized COE is the ratio of the total annualized cost to the total electrical load served.
(32) |
(33) |
The HOMER software determines the economical configuration of hybrid power system, capacity of each component and cash flow summary. The software simulates microgrid with all feasible combinations of hybrid energy sources and energy storage devices and determines the most economical configuration based on NPC and COE. Three major steps involved in the HOMER software are simulation, optimization and sensitivity analysis. A set of constraints of power balance, diesel power limits, reserve power requirement and grid power import/export limits shall be specified. During the optimization process, all possible hybrid power system configurations are optimized and the most viable configuration is selected based on the lowest NPC and COE. The sensitivity analysis is used to investigate the impact of sensitivity variables on optimization results. For example, the sensitivity analysis is useful to study the impact of fuel price, battery life time, type of storage, solar irradiation level and wind speed on the optimal system design.
The microgrid energy management (MGEM) involves the following main blocks of monitoring (load forecasting demand, renewable power generation, utility electricity price, etc.), controlling (distributed energy resource on/off control, switching of controllable loads, battery SOC, power import/export from grid), and optimization to achieve the minimum COE, maintain supply-demand balance and provide reliable power supply to all customers. The key issues of MGEM include the microgrid system configuration, coordination of hybrid energy sources, adequate energy storage capacity to ensure reliability, energy management and control. For effective MGEM, the bidirectional communication link is essential between grid controller and microgrid controller. The energy management module of central controller is responsible for the optimal energy dispatching in microgrids. The problem of MGEM involves finding the optimal unit commitment (UC) and optimal energy dispatching to achieve set objectives.
The polycrystalline type Huawei SUN2000 flat plate PV panel is considered in the simulation study. The rated capacity of the PV system is 40 kW. The operation temperature is 45 ℃, the temperature coefficient of PV panel is , the efficiency of PV panel is 17.30% and the life time is set as 25 years. The capital and replacement cost of the PV system is considered as 900 $/kW and the O&M cost is 10 $/kW per year. The monthly average solar radiation and temperature are illustrated in Figs.

Fig. 1 Monthly profile of average solar radiation.

Fig. 2 Monthly profile of average temperature.
Demand-side participation is an important aspect for optimal energy scheduling at lower cost and higher security [
The elasticity is defined as the load sensitivity with respect to the electricity price as expressed in (34) [
(34) |
The elasticity is composed of two different coefficients namely self-elasticity and cross-elasticity. The self-elasticity is a measure of the load curtailment while the cross-elasticity is a measure of the load shifting. The self-elasticity is defined as the change in demand at a time instant , due to change in price at the same time instant as represented in (35). Since the change in price will have an inverse effect on the change in demand, self-elasticity takes a negative value. The cross-elasticity is defined as the change in demand at time instant due to change in price at some other time instants as represented in (36). The cross-elasticity is either positive or zero depending on whether the customer is willing to shift their load or not.
(35) |
(36) |
The price elasticity matrix will be of the order for 24 hours of a day as represented in (37). The diagonal elements of the price elasticity matrix represent self-elasticity coefficients and the off-diagonal elements represent cross-elasticity coefficients.
(37) |
The electricity prices are assumed as 0.03 $/kWh in flat rate, and 0.012 $/kWh, 0.02 $/kWh and 0.05 $/kWh at valley, off-peak and peak periods, respectively. In this case, we assume electricity prices of 0.025 $/kWh and 0.01 $/kWh have the incentive and penalty rates, respectively. According to
In the TBR program, the customer load demand changes with respect to the electricity price signals. The modified load demand due to the implementation of TBR program is obtained from the following equation.
(38) |
The optimal energy management is a challenging task for MGOs with optimal utilization of hybrid energy sources and energy storage devices considering uncertain environment. This paper simulates the standalone microgrid with PV/WT/DG/BESS at remote village in Tamil Nadu, India using HOMER software to quantify techno-economic benefits. The optimal power system configuration is also determined based on the COE and annual NPC. The hybrid power system is modeled to cater the varying seasonal residential and commercial loads for the project site. In this paper, the hybrid power system is designed to provide the minimum requisite operation reserve to ensure the grid reliability. A comparative analysis of techno-economic and environment benefits is presented with different configurations of PV+BESS, WT+BESS, DG+BESS, PV+DG+BESS, WT+DG+BESS, PV+WT+BESS and PV+WT+DG+BESS with and without DR.
As mentioned in the previous section, eight different configurations of hybrid power systems are optimized considering hourly variation of load, wind velocity, solar radiation and ambient temperature. The peak electricity demand occurs during evening hours (06:00-10:00 p.m.), which cannot be catered using PV or WT due to the non-availability of adequate solar or wind power output. Therefore, the hybrid power system comprising of PV/WT/BESS could be an economical solution to produce 247 clean energy to match with time-varying realistic load demand. In this way, the hybrid power system is able to cater both the base load and the flexible load. The optimal configuration of hybrid power system (PV+BESS) can deliver requisite power for 247 at a cost of 0.124 $/kWh. This provides a framework to promote hybrid power systems for electrifying remote areas. The comparative analysis of techno-economic benefits for various configurations is given in Tables II-V. The system configuration details for each configuration are given in
The annual energy production details of each configuration are given in the
It is observed from the simulation results that the total electricity demand is supplied by 64.8% renewable fraction and 32.2% non-renewable fraction in PV+WT+DG+BESS configuration. As specified in the

Fig. 3 Cash flow summary of PV+WT+DG+BESS configuration.

Fig. 4 Optimal power dispatching in microgrid with various configurations. (a) DG+BESS. (b) WT+BESS. (c) PV+BESS. (d) PV+WT+BESS. (e) WT+DG+BESS. (f) PV+DG+BESS. (g) PV+WT+DG+BESS.
The COEs of the hybrid power systems are 0.124 $/kWh, 0.2492 $/kWh, 0.3982 $/kWh, and 0.5292$/kWh with renewable fractions of 100%, 65%, 58%, and 28%, respectively. Similarly, the NPCs of the hybrid power systems are $99427, $199850, $319414, and $424570 with renewable fractions of 100%, 65%, 58%, and 28%, respectively. It is observed that COEs and NPCs are inversely varying with renewable fractions. It is obtained from the cost summary of the hybrid power systems that the capital cost of PV+WT+DG+BES configuration is lower compared with other systems. It should also be noted that the payback periods of PV+WT+DG+BESS, PV+DG+BESS, WT+DG+BESS, PV+WT+BESS, PV+BESS configurations are 0.34 year, 0.54 year, 0.72 year, 0.177 year and 0.17 year, respectively, compared with WT+BESS configuration.
The brief summary of simulation results is presented considering the reserve power with BESS to ensure microgrid resilience during unexpected outages. The optimal size of PV+BESS configuration is determined for cost savings and enhanced resilience of the system. In this paper, the system is optimized to minimize the life cycle COE without considering resilience factor and then the system is re-optimized considering resilience. Simulation results are obtained with PV+BESS configuration to sustain the critical load and ensure the grid resilience. The system is designed to sustain the 50% critical load during the specified outage period for 48 hours. The hourly power dispatching results considering resilience are shown in

Fig. 5 Hourly power dispatching results considering resilience.

Fig. 6 Probability of surviving outages.

Fig. 7 Load profile with and without DR program.
The details of microgrid system configurations are given in Tables IX and X with DR.
The SOC of battery throughout the year of PV+WT+DG+BESS configuration is shown in

Fig. 8 Hourly SOC of PV+DG+WT+BESS configuration.
Different configurations of hybrid system are simulated considering 100%, 67% and 50% renewable fractions, respectively. After the implementation of DR program, the annual energy production details of each configuration are given in Table XI.
The total annual load consumption of the system is 62050 kWh/year which is met by PV power production 44588 kWh/year, DG power production 23653 kWh/year and WT power production 2865 kWh/year in PV+WT+DG+BESS configuration. It is evident from simulation results that the total electricity demand is supplied by 66.7% renewable fraction and 33.3% non-renewable fraction, respectively. As specified in Table IX, the PV+WT+DG+BESS configuration consists of 25 kW PV, 10 kW WT, 4 kW DG set, 23 battery strings and 12.8 kW converter. As mentioned in Table X, the levelized COE is low for PV+BESS configuration and high for WT+BESS configuration. The annual NPC is low for PV+BESS configuration and high for WT+BESS. The COEs of the hybrid power system are 0.09402 $/kWh, 0.2418 $/kWh, and 0.3182 $/kWh with 100%, 67%, and 50% renewable fractions, respectively. The NPCs of the hybrid power system are $75416, $193898.7, and $255261.2 with 100%, 67%, and 50% renewable fractions, respectively. With the implementation of DR program, NPC and COE are decreased by 24.1% for PV+BESS configuration. The payback periods of PV+WT+DG+BESS, PV+DG+BESS, WT+DG+BESS, PV+WT+BESS, PV+BESS configurations are 0.33 year, 0.43 year, 0.59 year, 0.16 year and 0.12 year, respectively, compared with WT+BESS configuration.
This paper evaluates the techno-economic benefits of standalone microgrids with hybrid energy sources and battery energy storage devices. Different feasible configurations of hybrid power system with PV/WT/DG/BESS are studied and a detailed comparative analysis is presented. The capital cost, operation cost, fuel cost, COE and total cost are determined for each configuration. The objective function considered in this paper is the minimization of COE and NPC subject to the reliability index LPSP, zero unmet energy demand, operation reserve and emission reduction. The analysis has been carried out considering the seasonal load variation throughout the year and the renewable fraction of 100%, 65% and 50%, respectively. Also, the load uncertainty is considered in the simulation study. Among the various feasible configurations at the project location, PV+BESS is the most economical with lower NPC and COE. The fuel cost of DGs has significant impact on NPC and COE. The greenhouse gas emissions from hybrid power system is lower than the conventional grid. The hybrid power system with PV+WT+DG+BESS reduces CO and CO2 emissions by 68.1% per year as compared with the off-grid microgrid integrated with DG alone. Further, the impact of DR is also demonstrated on optimal energy dispatching and techno-commercial benefits. NPC of hybrid system is low with high share of renewables. With the implementation of DR program, NPC and COE are decreased by 24.1% for PV+BESS. In addition, the reserve power requirement with BESS is also assessed to ensure grid resilience.
This paper is helpful to the microgrid operators for decision making, solid investment planning towards rural electrification, competitive microgrid design with hybrid energy sources and effective energy dispatching strategy development. Further, this study can assist microgrid system engineers during preliminary design phase to estimate the capacity of renewable energy source and the project cost.
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