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Economic Analysis of Two Microgrid Prototypes

A microgrid is an excellent supplement for both urban and rural utility grids. It assists in the integration of different kinds of renewable and distributed generation and it has the potential to make the distribution system more flexible and reliable. A microgrid is a combination of two or several energy resources like natural gas, wind, photovoltaic, biomass or diesel generators. Different energy resources together with battery storage system can complement one another to provide a more continuous power output. Two microgrid prototypes are discussed and, optional configurations are estimated using the economic analysis tool HOMER. Economic benefits and greenhouse-gas emissions of microgrids are calculated and compared. Results show that microgrids with optimal sizing and operation can achieve both cost efficiency and lower emissions.