ABSTRACT

A microgrid usually consists of a combination of conventional and non-conventional sources and energy storage devices to meet energy demands. Non-conventional/renewable energy sources are used in the microgrid to reduce environmental pollution and effectively manage the demand. The optimal design of the microgrid includes identifying the most suitable configuration from all possible configurations and choosing suitable capacities of the storage devices and energy sources. The microgrid is designed based on the minimum cost of energy and net present cost and the simultaneous maximization of reliability for the proposed grid-connected microgrid system. Therefore, the developed microgrid is more economical and reliable than the base case system. The grid/utility behavioral so has an adverse impact on the economy and other performance of the microgrid. Thus, the impact analysis of the different optional utility tariffs and demand response events is important. The utilities update the tariffs and their offers frequently. Thus, several versions of the electricity tariff are possible. Sometimes two or three tariff options are provided by a utility with the same tariff code. Then, an analysis of tariff offers and economy is necessary to decide which tariff is beneficial for the grid-connected microgrid system. Utilities use the demand response to provide incentives to customers or users to reduce or change their electricity consumption during peak hours. Hence the demand response events, in particular annual consideration, also affect microgrid performance and analysis. Here, a case study of NIT Durgapur is proposed for the design and analysis of a utility grid-connected microgrid system, including utility tariff variation and demand response events. Finally, a comparative analysis of the proposed grid-connected microgrid system is presented with respect to the base case system.