6533b7d7fe1ef96bd1267905

RESEARCH PRODUCT

Techno-economic evaluation of PV based institutional smart micro-grid under energy pricing dynamics

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Abstract The solar photovoltaic (PV) system with battery energy storage have a lot of potential to provide reliable and cost-effective electricity and to contribute in micro-grid operation. However, the operational performance of such type of micro-grid system depends on many factors (e.g. techno-economic sizing, energy management among the sources, market energy prices dynamics, energy dispatch strategies, etc.). In this paper, a typical Indian institutional energy system has considered for techno-economic performance evaluation for operating as a smart micro-grid under market energy pricing dynamics. The institutional energy system has integrated PV, battery storage and DG for operating as a smart micro-grid. An operational energy dispatch strategy for micro-grid has proposed and evaluated for maximizing the local energy resources utilization with contemplation of peak demand and grid outage conditions under market energy pricing dynamics. With techno-economic sizing of PV, battery and DG of considered system; the peak demand has reduced by 10%, DG contribution by 92% and annual energy savings by 45% compare to operation of base system. With proposed energy management strategy, the annual battery energy throughput has increased from 0.4% to 10%, and the DG’s contribution has decreased from 7% to 5% with 10% reduction in levelized cost of energy (CoE) compare to case with techno-economic sizing of PV, battery and DG for considered system. With inclusion of electrical energy pricing dynamics scenario, it has observed that the CoE has increased by 89% with change in time-of-use (ToU) tariff from 100% to 200% and considering energy-selling price to the grid at 100%. However, 8% reduction in the CoE has observed, when the energy-selling price to grid has increased from 100% to 200% at ToU of 100%. The results from this work are going to be useful for developing electrical tariff policies for promoting the PV based institutional micro-grid system under market energy pricing dynamics.