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Title: Resilience and economics of microgrids with PV, battery storage, and networked diesel generators

Abstract

Current designs and assessments of microgrids have ignored component reliability, leading to significant errors in predicting a microgrid’s performance while islanded. Existing life cycle cost studies on hybrid microgrids—which combine photovoltaics (PV), battery storage and networked emergency diesel generators—also have not identified all the potential economic opportunities. Reducing the number of emergency diesel generators through reliance on PV and battery, retail bill savings, and demand response and wholesale market revenue streams are all important. This paper provides a new statistical methodology that calculates the impact of distributed energy reliability and variability on a microgrid’s performance and a novel use of the optimization platform REopt to explore multiple cost savings and revenue streams. We examine the impacts for microgrids in California, Maryland, and New Mexico and show that a hybrid microgrid is a more resilient and cost-effective solution than a diesel-only system. Under realistic conditions, a hybrid microgrid can provide higher system reliability when islanded and have a lower life cycle cost under multiple market conditions than a traditional diesel generator-based system. The improved performance of the hybrid system is resilient to conditions experienced over the last 20 years in solar irradiance and sees little degradation in performance immediately after amore » hurricane. The cost savings to provide this more resilient backup power system as compared to a diesel-only microgrid are significant. The net present cost for a hybrid microgrid is 19% lower in New Mexico and 35% lower in Maryland than a diesel-only microgrid. In California, the net present cost of the hybrid microgrid is negative because, unlike a diesel-only microgrid, a hybrid microgrid has lower life cycle costs than the power costs without a microgrid.« less

Authors:
 [1];  [1];  [1]
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  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE; USDOD
OSTI Identifier:
1810535
Report Number(s):
NREL/JA-7A40-78837
Journal ID: ISSN 2666-7924; MainId:32754;UUID:22df5b10-7290-46d8-9f22-9b4de148e501;MainAdminID:19762
Grant/Contract Number:  
AC36-08GO28308; IAG-18-02080
Resource Type:
Accepted Manuscript
Journal Name:
Advances in Applied Energy
Additional Journal Information:
Journal Volume: 3; Journal ID: ISSN 2666-7924
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
25 ENERGY STORAGE; 29 ENERGY PLANNING, POLICY, AND ECONOMY; distributed energy resources; microgrid; reliability; resilience; techno-economic optimization

Citation Formats

Marqusee, Jeffrey, Becker, William, and Ericson, Sean. Resilience and economics of microgrids with PV, battery storage, and networked diesel generators. United States: N. p., 2021. Web. doi:10.1016/j.adapen.2021.100049.
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Marqusee, Jeffrey, Becker, William, & Ericson, Sean. Resilience and economics of microgrids with PV, battery storage, and networked diesel generators. United States. https://doi.org/10.1016/j.adapen.2021.100049
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Marqusee, Jeffrey, Becker, William, and Ericson, Sean. Sat . "Resilience and economics of microgrids with PV, battery storage, and networked diesel generators". United States. https://doi.org/10.1016/j.adapen.2021.100049. https://www.osti.gov/servlets/purl/1810535.
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@article{osti_1810535,
title = {Resilience and economics of microgrids with PV, battery storage, and networked diesel generators},
author = {Marqusee, Jeffrey and Becker, William and Ericson, Sean},
abstractNote = {Current designs and assessments of microgrids have ignored component reliability, leading to significant errors in predicting a microgrid’s performance while islanded. Existing life cycle cost studies on hybrid microgrids—which combine photovoltaics (PV), battery storage and networked emergency diesel generators—also have not identified all the potential economic opportunities. Reducing the number of emergency diesel generators through reliance on PV and battery, retail bill savings, and demand response and wholesale market revenue streams are all important. This paper provides a new statistical methodology that calculates the impact of distributed energy reliability and variability on a microgrid’s performance and a novel use of the optimization platform REopt to explore multiple cost savings and revenue streams. We examine the impacts for microgrids in California, Maryland, and New Mexico and show that a hybrid microgrid is a more resilient and cost-effective solution than a diesel-only system. Under realistic conditions, a hybrid microgrid can provide higher system reliability when islanded and have a lower life cycle cost under multiple market conditions than a traditional diesel generator-based system. The improved performance of the hybrid system is resilient to conditions experienced over the last 20 years in solar irradiance and sees little degradation in performance immediately after a hurricane. The cost savings to provide this more resilient backup power system as compared to a diesel-only microgrid are significant. The net present cost for a hybrid microgrid is 19% lower in New Mexico and 35% lower in Maryland than a diesel-only microgrid. In California, the net present cost of the hybrid microgrid is negative because, unlike a diesel-only microgrid, a hybrid microgrid has lower life cycle costs than the power costs without a microgrid.},
doi = {10.1016/j.adapen.2021.100049},
journal = {Advances in Applied Energy},
number = ,
volume = 3,
place = {United States},
year = {Sat Jun 19 00:00:00 EDT 2021},
month = {Sat Jun 19 00:00:00 EDT 2021}
}
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Publisher's Version of Record
https://doi.org/10.1016/j.adapen.2021.100049
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