Design and simulation of an optimal microgrid system

Microgrid is a localized grouping of electricity sources and loads that normally operates connected to and synchronous with the traditional centralized electrical grid (macrogrid), but can disconnect and function autonomously as physical and/or economic conditions dictate. Microgrids help to improve power quality, reliability, reduce carbon dioxide emissions, diversify energy resources, encourage local power generation, and provide economic benefits to consumers and grid operators. The most important thing of microgrid is to minimize the system power expense. We need to design and simulate an optimal microgrid system to minimize the system power expense. In this paper, we suggest a structure of microgrid, and propose an optimal charge and discharge algorithm of Battery Energy Storage System to minimize the system power expense. Finally we show our simulation result.