Economic analysis of a microgrid

A microgrid is a small-scale power grid that can be operated independently or in combination with the area's main electrical grid. Any small-scale localized station that has its own power resources, generation and loads and definable boundaries can be qualified as a microgrid. Microgrids can be intended as back-up power or to support the main power grid during periods of heavy demand. Microgrids involve multiple energy sources as a way of incorporating renewable power (such as wind turbines, photovoltaic panels, micro-hydro generators, biomass, fuel cells etc.). Microgrids can also reduce power costs, enhance reliability and reduce carbon emissions. In this paper an overview of the Microgrids concept is presented, examining the advantages and disadvantages of this system. A case study will be performed for a microgrid, considering power generation costs, generators output and loads demand. The microgrid comprises 6 distributed generators (DGs), 3 loads and a 150 kW storage unit. The installed capacity of the generators is 1100 kW, while the total load demand is 900 kW. The analysis will be performed for the entire day.