Economic and strategic challenges in microgrid integration: Insights from operational dynamics and renewable energy potential

Abstract

With the integration of a large number of microgrids in the power distribution network operation, economic and strategic challenges arise. To address these challenges, this research provides a comprehensive investigation into the operational, economic, and strategic dynamics of microgrids. Through careful data analysis, the study interprets the complications of microgrid responses to seasonal changes. It also investigates energy consumption patterns and production dynamics. The detailed analysis of microgrid configurations reveals the unique attributes and challenges of PV, wind, and hydropower microgrids. Moreover, the research explains the financial implications of microgrid integration, from setup costs to potential ROI. It is also examining the cooperative relationship between microgrids and conventional grids. Key findings highlight that solar microgrids contribute 3.2% to 5.3%, wind microgrids provide 5.9% to 7.4%, and hydropower microgrids contribute 24.4% of total power. Energy purchase peaks at 850,000 kWh in August and declines to 580,000 kWh in May. 170,000 kWh of energy is sold back to the grid in May. Moreover, the grid energy costs reduced from $0.178 kWh to $0.30 kWh. The total net present cost of the system is achieved at $37,880,023.33. Renewable energy production ranges from 480 kW to 2,300 kW, with a penetration level reaching 160%.