Techno Economic Feasibility Assessment for Optimizing Micro grid System in Islanded Mode of Operation

Abstract

To address the power demand in the rural area of Ramanujganj, Chhattisgarh, micro grid systems have emerged as a significant solution. These systems combine two or more renewable energy sources, offering a promising approach to meeting energy needs sustainably. Conducting a techno-economic analysis of such micro grid systems is crucial for maximizing the efficient use of renewable energy sources. This study focuses on preparing a site survey report for the designated location, which includes assessing the actual load demand, existing load, solar radiation levels, and hydro resources. Based on the findings from this survey, two types of micro grid renewable energy systems—PV/DG and PV/Hydro—are explored for application in the rural area. The simulation of these micro grid systems is carried out using HOMER Pro software. Various economic parameters such as Net Present Cost (NPC), Cost of Energy (COE), fuel consumption, electricity production, carbon emissions, and payback period are assessed for both proposed micro grid systems. The results of the analysis indicate that the PV/Hydro system is the most suitable option for meeting the electricity demand in the rural area.