Long-term optimization for the extension scheme of island microgrids

With the development of power electronics, renewable energy resources like wind and solar continue to gain worldwide popularity in order to release the environmental pressure. To achieve the optimal performance throughout the project lifetime, this paper proposes a long-term planning model for the microgrid extension project in a small island, which takes the operational life, salvage value and the inflation rate into account. Based on the proposed model, a multi-step optimization method is then developed to enhance the computational efficiency while minimizing the microgrid net present cost (NPC) as much as possible. With the proposed model and method, a long-term optimization scheme can be designed for the microgrid extension of islands. Comparisons between the integrated optimization method and the proposed method have been made. Simulation results demonstrate that the proposed technique is effective.