Microgrid feasibility study and economics

The microgrid concept is a promising approach to enable smarter energy grids. Microgrids are capable of managing and coordinating distributed generation, storage devices and loads in a more decentralized way reducing the need for centralized coordination and management entities. The increased control over communication network and digitization makes microgrids increasingly active, i.e. they can generate, sense, compute, communicate and actuate. This will also enable a more proactive role of consumers. Hence, efficient optimization and control of microgrid operation is extremely important. This chapter discusses how advanced control and optimization techniques can be used to realize the technical, economical and environmental potential of microgrids and facilitate more active demand management. Several aspects related to the feasibility study with particular focus on the control and operational aspects are discussed. The principal sources of uncertainty (e.g. energy demand, renewable generation) are taken into account to render microgrid operation less sensitive to unforeseen events. Simulation and experimental results show the potential economic and environmental benefits of the illustrated operational strategies.