Modelling and Cost Optimization of an Islanded Microgrid with an Existing Microhydro using HOMER Software

The main purpose of this paper is to present a cost optimization analysis of a hybrid microgrid located in a remote area. This study is based on the data of a remote area in Mahadevsthan of Dhading district in Nepal where an existing micro-hydro of 26 kilo Watts (kW) is unable to fulfil the increasing energy demand of that community. In this paper, a hybrid microgrid consisting of the existing micro-hydro along with other available renewable energy sources at the site is modeled and cost analysis is done. Solar power is the other energy source available at the site. Diesel generators and batteries are used for the backup to provide continuous and reliable power to the community. The modelling and sensitivity analysis of the hybrid system is done using HOMER software. It is used to find the most optimum configuration among all the possible outcomes that can be simulated to achieve the least possible cost of energy.