The lack of flexibility in the grid and the intermittent nature of renewable energy sources often hinders the integration of renewable energy into isolated microgrids and remote regions. One solution to these challenges is the implementation of energy storage systems, which can smooth out fluctuations in renewable energy generation and improve the grid's reliability. Energy storage can also enable the integration of a higher proportion of renewable energy into the grid, reducing the need for fossil fuel-based backup generation. This study introduces a new method for identifying the most financially efficient combination of renewable energy capacity for a self-sufficient microgrid that incorporates energy storage technology. The model considers operational and technical limitations, and the optimization problem is formulated using non-linear programming. The model was tested using historical data on weather, energy consumption, and equipment costs, with the analysis conducted hourly.
The optimization is done using AMPL with LINDOglobal solver. The data input is obtained from the National Taiwan University of Science and Technology in Taipei, Taiwan. The results show that the optimal capacity for grid-connected mode consists of 1500kW of PV solar and 4500kWh/450kW of battery energy storage. While for off-grid connection, it is 1850kW of PV solar and 5500kWh/500kW of battery energy storage is suggested. This study presents a method that yields the most favorable arrangement of renewable energy sources in a microgrid with a levelized cost of electricity (LCOE) of 0.19 $/kWh and a total cost of 5 million dollars, which is more cost-effective than a diesel-based system. The study results show that this optimal design model can assist in planning electricity supply and make it easier to transition to decentralized renewable energy systems in isolated microgrids. Furthermore, using energy storage in combination with renewable energy sources can help overcome the limitations of isolated microgrids and enhance their reliability, making them a viable option for meeting energy needs in remote regions. The adoption of renewable energy microgrids with energy storage can also contribute to the decarbonization of the energy sector and support the transition to a more sustainable future.

The lack of flexibility in the grid and the intermittent nature of renewable energy sources often hinders the integration of renewable energy into isolated microgrids and remote regions. One solution to these challenges is the implementation of energy storage systems, which can smooth out fluctuations in renewable energy generation and improve the grid's reliability. Energy storage can also enable the integration of a higher proportion of renewable energy into the grid, reducing the need for fossil fuel-based backup generation. This study introduces a new method for identifying the most financially efficient combination of renewable energy capacity for a self-sufficient microgrid that incorporates energy storage technology. The model considers operational and technical limitations, and the optimization problem is formulated using non-linear programming. The model was tested using historical data on weather, energy consumption, and equipment costs, with the analysis conducted hourly.
The optimization is done using AMPL with LINDOglobal solver. The data input is obtained from the National Taiwan University of Science and Technology in Taipei, Taiwan. The results show that the optimal capacity for grid-connected mode consists of 1500kW of PV solar and 4500kWh/450kW of battery energy storage. While for off-grid connection, it is 1850kW of PV solar and 5500kWh/500kW of battery energy storage is suggested. This study presents a method that yields the most favorable arrangement of renewable energy sources in a microgrid with a levelized cost of electricity (LCOE) of 0.19 $/kWh and a total cost of 5 million dollars, which is more cost-effective than a diesel-based system. The study results show that this optimal design model can assist in planning electricity supply and make it easier to transition to decentralized renewable energy systems in isolated microgrids. Furthermore, using energy storage in combination with renewable energy sources can help overcome the limitations of isolated microgrids and enhance their reliability, making them a viable option for meeting energy needs in remote regions. The adoption of renewable energy microgrids with energy storage can also contribute to the decarbonization of the energy sector and support the transition to a more sustainable future.

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