A Combined Trade-off and Optimization Approach for Microgrid Distributed Energy Resources Sizing

Sizing and dispatch of distributed energy resources (DER) plays an important role to achieve the intended objectives of designing a Microgrid. A novel asset sizing approach that combines multi criteria trade-off analysis and optimization is introduced in this paper for sizing Microgrid assets for different application. This approach combines decision-making benefits of multi criteria trade-off analysis and quantifiability benefit of optimization-based microgrid sizing. The hybrid approach introduces a new economic evaluation metric which is readily comprehensible, quantifiable, less computationally intensive and helps to easily compare between options. The proposed approach can size multiple distributed energy resources for a microgrid. The approach is demonstrated using a case study of sizing Li-ion battery energy storage system to perform peak shaving at an industrial facility in Titchfield, UK. The results of the approach are compared with sizing using a commercial software (NREL's Reopt lite). The dispatch of energy storage for this facility, sized using proposed approach would reduce operating costs by 11.28% as compared to sizing using Reopt which results in annual electricity cost reduction by 6.35%.