How do financial and technical assumptions influence the design of microgrids?

This paper articulates the interplay between financial and technical assumptions for the optimal design of microgrids and introduces a design approach in which two financing structures drive an efficient design process. This approach is demonstrated on a descriptive test case, using well accepted financial indicators to convey project success.

What are the cash flows of the optimal microgrid case?

Table 1 A in Appendix A shows a summary of the cash flows of the optimal microgrid case. The first row is the annual energy saving for each year of the project’s lifetime. Annual energy saving is the portion of utility purchases displaced because of microgrid deployment, and it is the main driver for establishing a business case for the microgrid.

Are financing approaches sensitivity to terms based on microgrid optimal design?

documented sensitivity of the financing approaches to terms such as project lifetime, loan term, interest and discount rates, and the amount financed on microgrid optimal design. The paper is organized such that the design framework, optimization model, and sufficiency metrics are introduced in Sec. II.

Does a dc microgrid have a technical analysis?

Although significant studies exist on technical analysis of DC distribution system, the techno-economic analysis of different DC microgrid configurations with different types of loads and converting systems, including the PV penetration level, load growth and the structure of the local communities have been scarcely addressed.

What are the challenges of implementing DC microgrids?

However, the main challenge of implementing DC microgrid is the existing structure of the AC distribution system. In addition to the previous researches performed on DC microgrids, this paper proposes a framework to assess the technical and financial benefits of implementing the AC and DC microgrids.

How can microgrids overcome financial problems?

To overcome the financial problems, many researchers have prepared various types of microgrids that generate electricity from various types of flow resources, like hydro, solar, biogas, and air current power stations, whose system is called a compound flow power system.