Abstract

The optimal planning of grid-connected microgrids (MGs) has been extensively studied in recent years. While most of the previous studies have used fixed or time-of-use (TOU) prices for the optimal sizing of MGs, this work introduces real-time pricing (RTP) for implementing a demand response (DR) program according to the national grid prices of Iran. In addition to the long-term planning of MG, the day-ahead operation of MG is also analyzed to get a better understanding of the DR program for daily electricity dispatch. For this purpose, four different days corresponding to the four seasons are selected for further analysis. In addition, various impacts of the proposed DR program on the MG planning results, including sizing and best configuration, net present cost (NPC) and cost of energy (COE), and emission generation by the utility grid, are investigated. The optimization results show that the implementation of the DR program has a positive impact on the technical, economic, and environmental aspects of MG. The NPC and COE are reduced by about USD 3700 and USD 0.0025/kWh, respectively. The component size is also reduced, resulting in a reduction in the initial cost. Carbon emissions are also reduced by 185 kg/year.

Highlights

  • In recent years, Iran’s electricity consumption has encountered an accelerating trend of an average of 8% per year [1,2,3,4,5,6,7,8,9,10]

  • A renewable-based MG is proposed for optimal planning and day-ahead operation

  • The HOMER Optimizer is used for finding optimal sizing of the components

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Summary

Introduction

Iran’s electricity consumption has encountered an accelerating trend of an average of 8% per year [1,2,3,4,5,6,7,8,9,10]. This has become a significant issue for the Iranian energy market [11,12,13,14,15,16,17]. The governmental organization SATBA (Renewable Energy and Energy Efficiency Organization) [44,45] has recently dedicated a few incentives to encourage localizing clean energy generation plants, which make the concept of clean energy affordable for households [46,47,48]

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