IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v205y2017icp105-115.html
   My bibliography  Save this article

Business cases for isolated and grid connected microgrids: Methodology and applications

Author

Listed:
  • Quashie, Mike
  • Bouffard, François
  • Joós, Géza

Abstract

Microgrids are receiving increasing attention from power systems planners as a means to integrate distributed energy resources (DER) including renewable energy resources into the grid, and as a means of balancing the variability of renewable resources and loads with flexible generation. A key to justifying microgrids is establishing their business case. This helps to set the structure and configuration of the microgrid, including defining the DER required to feed part or all of the loads and the level of control required from the microgrid controller. This paper proposes a systematic approach and methodology for formulating and quantifying a microgrid business case. The framework adapts the use case approach to the microgrid context. It defines stakeholders, benefits and beneficiaries and determines the dependency of the business case on microgrid technologies. A method to quantify and allocate benefits is proposed. Applications to practical microgrids are discussed, including remote communities, remote mining sites and grid connected critical distribution grids.

Suggested Citation

  • Quashie, Mike & Bouffard, François & Joós, Géza, 2017. "Business cases for isolated and grid connected microgrids: Methodology and applications," Applied Energy, Elsevier, vol. 205(C), pages 105-115.
    • Handle: RePEc:eee:appene:v:205:y:2017:i:c:p:105-115
    DOI: 10.1016/j.apenergy.2017.07.112
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261917309856
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2017.07.112?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stadler, Michael & Cardoso, Gonçalo & Mashayekh, Salman & Forget, Thibault & DeForest, Nicholas & Agarwal, Ankit & Schönbein, Anna, 2016. "Value streams in microgrids: A literature review," Applied Energy, Elsevier, vol. 162(C), pages 980-989.
    2. Mashayekh, Salman & Stadler, Michael & Cardoso, Gonçalo & Heleno, Miguel, 2017. "A mixed integer linear programming approach for optimal DER portfolio, sizing, and placement in multi-energy microgrids," Applied Energy, Elsevier, vol. 187(C), pages 154-168.
    3. Korkas, Christos D. & Baldi, Simone & Michailidis, Iakovos & Kosmatopoulos, Elias B., 2015. "Intelligent energy and thermal comfort management in grid-connected microgrids with heterogeneous occupancy schedule," Applied Energy, Elsevier, vol. 149(C), pages 194-203.
    4. Zheng, Menglian & Meinrenken, Christoph J. & Lackner, Klaus S., 2014. "Agent-based model for electricity consumption and storage to evaluate economic viability of tariff arbitrage for residential sector demand response," Applied Energy, Elsevier, vol. 126(C), pages 297-306.
    5. Korkas, Christos D. & Baldi, Simone & Michailidis, Iakovos & Kosmatopoulos, Elias B., 2016. "Occupancy-based demand response and thermal comfort optimization in microgrids with renewable energy sources and energy storage," Applied Energy, Elsevier, vol. 163(C), pages 93-104.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Richard & Hsu, Shu-Chien & Zheng, Saina & Chen, Jieh-Haur & Li, Xuran Ivan, 2020. "Renewable energy microgrids: Economic evaluation and decision making for government policies to contribute to affordable and clean energy," Applied Energy, Elsevier, vol. 274(C).
    2. Amir, Vahid & Azimian, Mahdi, 2020. "Dynamic Multi-Carrier Microgrid Deployment Under Uncertainty," Applied Energy, Elsevier, vol. 260(C).
    3. Kinnon, Michael Mac & Razeghi, Ghazal & Samuelsen, Scott, 2021. "The role of fuel cells in port microgrids to support sustainable goods movement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    4. Ping Liu & Zexiang Cai & Peng Xie & Xiaohua Li & Yongjun Zhang, 2019. "A Computationally Efficient Optimization Method for Battery Storage in Grid-connected Microgrids Based on a Power Exchanging Process," Energies, MDPI, vol. 12(8), pages 1-19, April.
    5. Huo, Yuchong & Bouffard, François & Joós, Géza, 2021. "Decision tree-based optimization for flexibility management for sustainable energy microgrids," Applied Energy, Elsevier, vol. 290(C).
    6. Iolanda Saviuc & Herbert Peremans & Steven Van Passel & Kevin Milis, 2019. "Economic Performance of Using Batteries in European Residential Microgrids under the Net-Metering Scheme," Energies, MDPI, vol. 12(1), pages 1-28, January.
    7. Azimian, Mahdi & Amir, Vahid & Javadi, Saeid, 2020. "Economic and Environmental Policy Analysis for Emission-Neutral Multi-Carrier Microgrid Deployment," Applied Energy, Elsevier, vol. 277(C).
    8. Mehdizadeh, Ali & Taghizadegan, Navid & Salehi, Javad, 2018. "Risk-based energy management of renewable-based microgrid using information gap decision theory in the presence of peak load management," Applied Energy, Elsevier, vol. 211(C), pages 617-630.
    9. Ricardo Echeverri Mart nez & Eduardo Caicedo Bravo & Wilfredo Alfonso Morales & Juan David Garcia-Racines, 2020. "A Bi-level Multi-objective Optimization Model for the Planning, Design and Operation of Smart Grid Projects. Case Study: An Islanded Microgrid," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 325-341.
    10. Huo, Yuchong & Bouffard, François & Joós, Géza, 2022. "Integrating learning and explicit model predictive control for unit commitment in microgrids," Applied Energy, Elsevier, vol. 306(PA).
    11. Obara, Shin’ya & Fujimoto, Shoki & Sato, Katsuaki & Utsugi, Yuta, 2021. "Planning renewable energy introduction for a microgrid without battery storage," Energy, Elsevier, vol. 215(PB).
    12. Miguel Carpintero-Rentería & David Santos-Martín & Josep M. Guerrero, 2019. "Microgrids Literature Review through a Layers Structure," Energies, MDPI, vol. 12(22), pages 1-22, November.
    13. Razeghi, Ghazal & Gu, Fei & Neal, Russell & Samuelsen, Scott, 2018. "A generic microgrid controller: Concept, testing, and insights," Applied Energy, Elsevier, vol. 229(C), pages 660-671.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Song, Kwonsik & Kim, Sooyoung & Park, Moonseo & Lee, Hyun-Soo, 2017. "Energy efficiency-based course timetabling for university buildings," Energy, Elsevier, vol. 139(C), pages 394-405.
    2. Giaouris, Damian & Papadopoulos, Athanasios I. & Patsios, Charalampos & Walker, Sara & Ziogou, Chrysovalantou & Taylor, Phil & Voutetakis, Spyros & Papadopoulou, Simira & Seferlis, Panos, 2018. "A systems approach for management of microgrids considering multiple energy carriers, stochastic loads, forecasting and demand side response," Applied Energy, Elsevier, vol. 226(C), pages 546-559.
    3. Kou, Peng & Liang, Deliang & Gao, Lin, 2017. "Distributed EMPC of multiple microgrids for coordinated stochastic energy management," Applied Energy, Elsevier, vol. 185(P1), pages 939-952.
    4. Arcos-Aviles, Diego & Pascual, Julio & Guinjoan, Francesc & Marroyo, Luis & Sanchis, Pablo & Marietta, Martin P., 2017. "Low complexity energy management strategy for grid profile smoothing of a residential grid-connected microgrid using generation and demand forecasting," Applied Energy, Elsevier, vol. 205(C), pages 69-84.
    5. Ogunjuyigbe, A.S.O. & Ayodele, T.R. & Akinola, O.A., 2017. "User satisfaction-induced demand side load management in residential buildings with user budget constraint," Applied Energy, Elsevier, vol. 187(C), pages 352-366.
    6. Fontenot, Hannah & Dong, Bing, 2019. "Modeling and control of building-integrated microgrids for optimal energy management – A review," Applied Energy, Elsevier, vol. 254(C).
    7. Specht, Jan Martin & Madlener, Reinhard, 2023. "Quantifying value pools for distributed flexible energy assets," Energy, Elsevier, vol. 263(PB).
    8. Ehsan, Ali & Yang, Qiang, 2019. "Scenario-based investment planning of isolated multi-energy microgrids considering electricity, heating and cooling demand," Applied Energy, Elsevier, vol. 235(C), pages 1277-1288.
    9. Mohseni, Amin & Mortazavi, Seyed Saeidollah & Ghasemi, Ahmad & Nahavandi, Ali & Talaei abdi, Masoud, 2017. "The application of household appliances' flexibility by set of sequential uninterruptible energy phases model in the day-ahead planning of a residential microgrid," Energy, Elsevier, vol. 139(C), pages 315-328.
    10. Adefarati, T. & Bansal, R.C., 2017. "Reliability and economic assessment of a microgrid power system with the integration of renewable energy resources," Applied Energy, Elsevier, vol. 206(C), pages 911-933.
    11. De Mel, Ishanki & Klymenko, Oleksiy V. & Short, Michael, 2024. "Discrete optimal designs for distributed energy systems with nonconvex multiphase optimal power flow," Applied Energy, Elsevier, vol. 353(PB).
    12. Cardoso, G. & Stadler, M. & Mashayekh, S. & Hartvigsson, E., 2017. "The impact of ancillary services in optimal DER investment decisions," Energy, Elsevier, vol. 130(C), pages 99-112.
    13. Tómasson, Egill & Hesamzadeh, Mohammad Reza & Wolak, Frank A., 2020. "Optimal offer-bid strategy of an energy storage portfolio: A linear quasi-relaxation approach," Applied Energy, Elsevier, vol. 260(C).
    14. Baldi, Simone & Korkas, Christos D. & Lv, Maolong & Kosmatopoulos, Elias B., 2018. "Automating occupant-building interaction via smart zoning of thermostatic loads: A switched self-tuning approach," Applied Energy, Elsevier, vol. 231(C), pages 1246-1258.
    15. Mathiesen, Patrick & Stadler, Michael & Kleissl, Jan & Pecenak, Zachary, 2021. "Techno-economic optimization of islanded microgrids considering intra-hour variability," Applied Energy, Elsevier, vol. 304(C).
    16. Wang, Wei & Chen, Jiayu & Huang, Gongsheng & Lu, Yujie, 2017. "Energy efficient HVAC control for an IPS-enabled large space in commercial buildings through dynamic spatial occupancy distribution," Applied Energy, Elsevier, vol. 207(C), pages 305-323.
    17. Baldi, Simone & Yuan, Shuai & Endel, Petr & Holub, Ondrej, 2016. "Dual estimation: Constructing building energy models from data sampled at low rate," Applied Energy, Elsevier, vol. 169(C), pages 81-92.
    18. Fazli Wahid & Muhammad Fayaz & Ayman Aljarbouh & Masood Mir & Muhammad Aamir & Imran, 2020. "Energy Consumption Optimization and User Comfort Maximization in Smart Buildings Using a Hybrid of the Firefly and Genetic Algorithms," Energies, MDPI, vol. 13(17), pages 1-26, August.
    19. Marqusee, Jeffrey & Ericson, Sean & Jenket, Don, 2021. "Impact of emergency diesel generator reliability on microgrids and building-tied systems," Applied Energy, Elsevier, vol. 285(C).
    20. Jazizadeh, Farrokh & Jung, Wooyoung, 2018. "Personalized thermal comfort inference using RGB video images for distributed HVAC control," Applied Energy, Elsevier, vol. 220(C), pages 829-841.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:205:y:2017:i:c:p:105-115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.