Incentive‐based feasibility of a hybrid AC/DC microgrid in Saudi Arabia

Abstract

The concept of microgrids (MGs) is revolutionizing the current power system. Most of the contemporary MGs are AC based; however, and due to the growth of DC-based machines and household appliances, hybrid AC/DC MGs are noticeably gaining more attention. This paper carries a detailed and comprehensive economic analysis on a proposed hybrid AC/DC MG in the Kingdom of Saudi Arabia, a region where MGs are rarely studied. The aim is to find if such configurations are economically feasible in the region, and what incentives are needed to ensure feasibility. Multiple load categories and renewable generation sources are modelled from real and local data to enhance the practicality of the study. Using the designed MG testbed, the incentive-based economic feasibility study is implemented to analyze the effectivity of the configuration and the proposed testbed in the region. The research concludes that the hybrid framework is not economically feasible due to the subsidized low energy retail prices in the kingdom, which makes customers unwilling to join a MG network that might charge higher rates. A comprehensive financial model is introduced to suggest proper incentives, possibly by the government, to the different customer and income classes to make the AC/DC MG option feasible.