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Techno-Economic Analysis of Renewable-Energy-Based Micro-Grids Considering Incentive Policies

Author

Listed:
  • Shiva Amini

    (Power Systems Modeling & Simulation Lab, Department of Electrical and Computer Engineering, University of Kurdistan, Sanandaj 66177-15175, Iran)

  • Salah Bahramara

    (Department of Electrical Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj 66169-35391, Iran)

  • Hêmin Golpîra

    (Power Systems Modeling & Simulation Lab, Department of Electrical and Computer Engineering, University of Kurdistan, Sanandaj 66177-15175, Iran)

  • Bruno Francois

    (Arts et Metiers Institute of Technology, Centrale Lille, Yncrea Hauts-de-France, ULR 2697-L2EP, F59000 Lille, France)

  • João Soares

    (GECAD—Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, LASI—Intelligent Systems Associate Laboratory, Polytechnic of Porto, Rua Dr. Antonio Bernardino de Almeida, 431, 4249-015 Porto, Portugal)

Abstract

Renewable-energy-based microgrids (MGs) are being advocated around the world in response to increasing energy demand, high levels of greenhouse gas (GHG) emissions, energy losses, and the depletion of conventional energy resources. However, the high investment cost of the MGs besides the low selling price of the energy to the main grid are two main challenges to realize the MGs in developing countries such as Iran. For this reason, the government should define some incentive policies to attract investor attention to MGs. This paper aims to develop a framework for the optimal planning of a renewable energy-based MG considering the incentive policies. To investigate the effect of the incentive policies on the planning formulation, three different policies are introduced in a pilot system in Iran. The minimum penetration rates of the RESs in the MG to receive the government incentive are defined as 20% and 40% in two different scenarios. The results show that the proposed incentive policies reduce the MG’s total net present cost (NPC) and the amount of carbon dioxide (CO 2 ) emissions. The maximum NPC and CO 2 reduction in comparison with the base case (with incentive policies) are 22.87% and 56.13%, respectively. The simulations are conducted using the hybrid optimization model for electric renewables (HOMER) software.

Suggested Citation

  • Shiva Amini & Salah Bahramara & Hêmin Golpîra & Bruno Francois & João Soares, 2022. "Techno-Economic Analysis of Renewable-Energy-Based Micro-Grids Considering Incentive Policies," Energies, MDPI, vol. 15(21), pages 1-19, November.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:21:p:8285-:d:964620
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    References listed on IDEAS

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    1. Maksymilian Homa & Anna Pałac & Maciej Żołądek & Rafał Figaj, 2022. "Small-Scale Hybrid and Polygeneration Renewable Energy Systems: Energy Generation and Storage Technologies, Applications, and Analysis Methodology," Energies, MDPI, vol. 15(23), pages 1-52, December.

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