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Sizing Assessment of Islanded Microgrids Considering Total Investment Cost and Tax Benefits in Colombia

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  • Wilmer Ropero-Castaño

    (Research Group on Efficient Energy Management (GIMEL), Departamento de Ingeniería Eléctrica, Universidad de Antioquia (UdeA), Calle 70 No. 52-21, Medellin 050010, Colombia)

  • Nicolás Muñoz-Galeano

    (Research Group on Efficient Energy Management (GIMEL), Departamento de Ingeniería Eléctrica, Universidad de Antioquia (UdeA), Calle 70 No. 52-21, Medellin 050010, Colombia)

  • Eduardo F. Caicedo-Bravo

    (Grupo de Investigación en Percepción y Sistemas Inteligentes (PSI), Escuela de Ingeniería Eléctrica y Electrónica, Universidad del Valle (Univalle), Calle 13 No 100-00, Cali 760001, Colombia)

  • Pablo Maya-Duque

    (Grupo de Investigación ALIADO, Departamento de Ingeniería Industrial, Universidad de Antioquia (UdeA), Calle 70 No. 52-21, Medellin 050010, Colombia)

  • Jesús M. López-Lezama

    (Research Group on Efficient Energy Management (GIMEL), Departamento de Ingeniería Eléctrica, Universidad de Antioquia (UdeA), Calle 70 No. 52-21, Medellin 050010, Colombia)

Abstract

This paper deals with the optimal sizing of islanded microgrids (MGs), which use diesel generators to supply energy in off-grid areas. The MG under study integrates photovoltaic (PV) and diesel generation, a battery energy storage System (BESS), and an inverter for the connection between AC and DC voltage buses. Levelised cost of energy (LCOE) and annual system cost (ASC) are considered economic indicators, while the loss of power supply probability (LPSP) is used as a reliability indicator. Fiscal incentives such as the tax benefits and accelerated depreciation applied in Colombia are considered for the optimally sizing of each MG element. Solar measurements were taken at a weather station located in the main campus of Universidad de Antioquia in Medellin, Colombia at a latitude of 6.10 and longitude of −75.38. The objective function is the minimization of the total energy delivered from the power sources that successfully meets the load. The model was implemented in Python programming language considering several scenarios. Two cases were evaluated: the first one considered PV panels, a BESS and a diesel generator, while the second one only considered PV panels and a BESS. The option that does not include the diesel generator turned out to be the most expensive, since additional PV and BESS resources are required to meet the load profile. Furthermore, it was found that the LCOE was lower when tax benefits were taken into account.

Suggested Citation

  • Wilmer Ropero-Castaño & Nicolás Muñoz-Galeano & Eduardo F. Caicedo-Bravo & Pablo Maya-Duque & Jesús M. López-Lezama, 2022. "Sizing Assessment of Islanded Microgrids Considering Total Investment Cost and Tax Benefits in Colombia," Energies, MDPI, vol. 15(14), pages 1-24, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:14:p:5161-:d:864113
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    References listed on IDEAS

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    1. 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.
    2. Haghi, Ehsan & Raahemifar, Kaamran & Fowler, Michael, 2018. "Investigating the effect of renewable energy incentives and hydrogen storage on advantages of stakeholders in a microgrid," Energy Policy, Elsevier, vol. 113(C), pages 206-222.
    3. Ogunjuyigbe, A.S.O. & Ayodele, T.R. & Akinola, O.A., 2016. "Optimal allocation and sizing of PV/Wind/Split-diesel/Battery hybrid energy system for minimizing life cycle cost, carbon emission and dump energy of remote residential building," Applied Energy, Elsevier, vol. 171(C), pages 153-171.
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    Cited by:

    1. García-García, Jersson & Sarmiento-Ariza, Yennifer & Campos-Rodríguez, Lizeth & Rey-López, Juan & Osma-Pinto, German, 2023. "Evaluation of tax incentives on the financial viability of microgrids," Applied Energy, Elsevier, vol. 329(C).
    2. Abdullah Alamri & Abdulrahman AlKassem & Azeddine Draou, 2023. "Composite Demand-Based Energy Storage Sizing for an Isolated Microgrid System," Sustainability, MDPI, vol. 15(2), pages 1-14, January.
    3. Asrin Seyedzahedi & Salah Bahramara, 2023. "Facilitating Investment in Photovoltaic Systems in Iran Considering Time-of-Use Feed-in-Tariff and Carbon Market," Energies, MDPI, vol. 16(3), pages 1-20, January.

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