Operation Cost Minimization of Domestic Microgrid under the Time of Use Pricing Using HOMER

Abstract

This paper presents operation cost minimization of a domestic grid-connected microgrid under a time of use pricing scheme. Modeling, simulation and optimization of the proposed hybrid microgrid system including traditional and renewable power sources, energy storage systems and loads are performed by HOMER software based on the total net present cost. Gonbadekavoos industrial park in north-eastern Iran is considered as a domestic grid-connected microgrid and input data such as load, solar radiation, wind speed and energy price profiles are adapted from Gonbadekavoos region. Different configurations of power sources along with energy price sensitivity analysis in three periods of low, intermediate and peak load periods are investigated. Obtained results illustrate impact of energy prices on the integration rate of energy generating units specifically renewable energy fraction in order to minimize the operating cost of microgrid.