IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i19p4997-d1493875.html
   My bibliography  Save this article

Evaluating Microgrid Investments: Introducing the MPIR Index for Economic and Environmental Synergy

Author

Listed:
  • Agis M. Papadopoulos

    (Process Equipment Design Laboratory, Department of Mechanical Engineering, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Maria Symeonidou

    (Process Equipment Design Laboratory, Department of Mechanical Engineering, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

Abstract

In view of the increasing environmental challenges and the growing demand for sustainable energy solutions, the optimization of microgrid systems with regard to economic efficiency and environmental compatibility is becoming ever more important. This paper presents the Microgrid Performance and Investment Rating (MPIR) index, a novel assessment framework developed to link economic and environmental objectives within microgrid configurations. The MPIR index evaluates microgrid configurations based on five critical dimensions: financial viability, sustainability, regional renewable integration readiness, energy demand, and community engagement, facilitating comprehensive and balanced decision making. The current cases focus on the area of Greece; however, the model can have a wider application. Developed using a two-target optimization model, this index integrates various energy sources—including photovoltaics, micro-wind turbines, and different types of batteries—with advanced energy management strategies to assess and improve microgrid performance. This paper presents case studies in which the MPIR index is applied to different microgrid scenarios. It demonstrates its effectiveness in identifying optimal configurations that reduce the carbon footprint while maximizing economic returns. The MPIR index provides a quantifiable, scalable tool for stakeholders, not only advancing the field of microgrid optimization, but also aligning with global sustainability goals and promoting the transition to a more resilient and sustainable energy future.

Suggested Citation

  • Agis M. Papadopoulos & Maria Symeonidou, 2024. "Evaluating Microgrid Investments: Introducing the MPIR Index for Economic and Environmental Synergy," Energies, MDPI, vol. 17(19), pages 1-21, October.
  • Handle: RePEc:gam:jeners:v:17:y:2024:i:19:p:4997-:d:1493875
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/19/4997/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/17/19/4997/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aberilla, Jhud Mikhail & Gallego-Schmid, Alejandro & Stamford, Laurence & Azapagic, Adisa, 2020. "Design and environmental sustainability assessment of small-scale off-grid energy systems for remote rural communities," Applied Energy, Elsevier, vol. 258(C).
    2. Maria Symeonidou & Agis M. Papadopoulos, 2022. "Selection and Dimensioning of Energy Storage Systems for Standalone Communities: A Review," Energies, MDPI, vol. 15(22), pages 1-28, November.
    3. McManus, M.C., 2012. "Environmental consequences of the use of batteries in low carbon systems: The impact of battery production," Applied Energy, Elsevier, vol. 93(C), pages 288-295.
    4. Koskela, Juha & Rautiainen, Antti & Järventausta, Pertti, 2019. "Using electrical energy storage in residential buildings – Sizing of battery and photovoltaic panels based on electricity cost optimization," Applied Energy, Elsevier, vol. 239(C), pages 1175-1189.
    Full references (including those not matched with items on IDEAS)

    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. Maria Symeonidou & Agis M. Papadopoulos, 2022. "Selection and Dimensioning of Energy Storage Systems for Standalone Communities: A Review," Energies, MDPI, vol. 15(22), pages 1-28, November.
    2. Kim Maya Yavor & Vanessa Bach & Matthias Finkbeiner, 2021. "Resource Assessment of Renewable Energy Systems—A Review," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    3. He, Hongwen & Xiong, Rui & Zhao, Kai & Liu, Zhentong, 2013. "Energy management strategy research on a hybrid power system by hardware-in-loop experiments," Applied Energy, Elsevier, vol. 112(C), pages 1311-1317.
    4. Waibel, Christoph & Evins, Ralph & Carmeliet, Jan, 2019. "Co-simulation and optimization of building geometry and multi-energy systems: Interdependencies in energy supply, energy demand and solar potentials," Applied Energy, Elsevier, vol. 242(C), pages 1661-1682.
    5. Rodriguez, Mauricio & Arcos-Aviles, Diego & Guinjoan, Francesc, 2024. "Simple fuzzy logic-based energy management for power exchange in isolated multi-microgrid systems: A case study in a remote community in the Amazon region of Ecuador," Applied Energy, Elsevier, vol. 357(C).
    6. Lemence, Allen Lemuel G. & Tamayao, Mili-Ann M., 2021. "Energy consumption profile estimation and benefits of hybrid solar energy system adoption for rural health units in the Philippines," Renewable Energy, Elsevier, vol. 178(C), pages 651-668.
    7. Masebinu, S.O. & Akinlabi, E.T. & Muzenda, E. & Aboyade, A.O., 2017. "Techno-economics and environmental analysis of energy storage for a student residence under a South African time-of-use tariff rate," Energy, Elsevier, vol. 135(C), pages 413-429.
    8. Jiao, P.H. & Chen, J.J. & Cai, X. & Wang, L.L. & Zhao, Y.L. & Zhang, X.H. & Chen, W.G., 2021. "Joint active and reactive for allocation of renewable energy and energy storage under uncertain coupling," Applied Energy, Elsevier, vol. 302(C).
    9. Fabio Massaro & Maria Luisa Di Silvestre & Marco Ferraro & Francesco Montana & Eleonora Riva Sanseverino & Salvatore Ruffino, 2024. "Energy Hub Model for the Massive Adoption of Hydrogen in Power Systems," Energies, MDPI, vol. 17(17), pages 1-31, September.
    10. Jan K. Kazak & Joanna A. Kamińska & Rafał Madej & Marta Bochenkiewicz, 2020. "Where Renewable Energy Sources Funds are Invested? Spatial Analysis of Energy Production Potential and Public Support," Energies, MDPI, vol. 13(21), pages 1-26, October.
    11. Laura Canale & Anna Rita Di Fazio & Mario Russo & Andrea Frattolillo & Marco Dell’Isola, 2021. "An Overview on Functional Integration of Hybrid Renewable Energy Systems in Multi-Energy Buildings," Energies, MDPI, vol. 14(4), pages 1-33, February.
    12. Zhang, Yijie & Ma, Tao & Elia Campana, Pietro & Yamaguchi, Yohei & Dai, Yanjun, 2020. "A techno-economic sizing method for grid-connected household photovoltaic battery systems," Applied Energy, Elsevier, vol. 269(C).
    13. Pereira, Géssica Michelle dos Santos & Weigert, Gabriela Rosalee & Macedo, Pablo Lopes & Silva, Kiane Alves e & Segura Salas, Cresencio Silvio & Gonçalves, Antônio Maurício de Matos & Nascimento, Hebe, 2022. "Quasi-dynamic operation and maintenance plan for photovoltaic systems in remote areas: The framework of Pantanal-MS," Renewable Energy, Elsevier, vol. 181(C), pages 404-416.
    14. Savolainen, Rebecka & Lahdelma, Risto, 2022. "Optimization of renewable energy for buildings with energy storages and 15-minute power balance," Energy, Elsevier, vol. 243(C).
    15. Solomon Kiros & Baseem Khan & Sanjeevikumar Padmanaban & Hassan Haes Alhelou & Zbigniew Leonowicz & Om Prakash Mahela & Jens Bo Holm-Nielsen, 2020. "Development of Stand-Alone Green Hybrid System for Rural Areas," Sustainability, MDPI, vol. 12(9), pages 1-14, May.
    16. Pan, Zehua & Liu, Qinglin & Zhang, Lan & Zhou, Juan & Zhang, Caizhi & Chan, Siew Hwa, 2017. "Experimental and thermodynamic study on the performance of water electrolysis by solid oxide electrolyzer cells with Nb-doped Co-based perovskite anode," Applied Energy, Elsevier, vol. 191(C), pages 559-567.
    17. Liu, Jia & Chen, Xi & Yang, Hongxing & Li, Yutong, 2020. "Energy storage and management system design optimization for a photovoltaic integrated low-energy building," Energy, Elsevier, vol. 190(C).
    18. Fernando Echevarría Camarero & Ana Ogando-Martínez & Pablo Durán Gómez & Pablo Carrasco Ortega, 2022. "Profitability of Batteries in Photovoltaic Systems for Small Industrial Consumers in Spain under Current Regulatory Framework and Energy Prices," Energies, MDPI, vol. 16(1), pages 1-19, December.
    19. Abdul Munim Rehmani & Syed Ali Abbas Kazmi & Abdullah Altamimi & Zafar A. Khan & Muhammad Awais, 2023. "Techno-Economic-Environmental Assessment of an Isolated Rural Micro-Grid from a Mid-Career Repowering Perspective," Sustainability, MDPI, vol. 15(3), pages 1-35, January.
    20. Odin Foldvik Eikeland & Filippo Maria Bianchi & Harry Apostoleris & Morten Hansen & Yu-Cheng Chiou & Matteo Chiesa, 2021. "Predicting Energy Demand in Semi-Remote Arctic Locations," Energies, MDPI, vol. 14(4), pages 1-17, February.

    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:gam:jeners:v:17:y:2024:i:19:p:4997-:d:1493875. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.