Economic Analysis of Microgrids

Abstract

In Japan, three national field tests of microgrid were started in 2005. These projects are trying to demonstrate technical feasibility of microgrids with renewable energy, but economic and environmental benefits have not been shown yet. The economic evaluation of the microgrids is still challenging. This paper presents a methodology for economic design and optimal operation of microgrids with renewable energy sources. Numerical examples are illustrated to show the optimal configuration of a microgrid.