The document outlines the techno-economic assessment for microgrids, focusing on design, sizing, and optimal dispatch of distributed energy resources (DER). It highlights the importance of combining technical requirements, cost factors, and policy in the design process while addressing challenges such as optimization limitations and uncertainty management. Various software tools and methodologies are discussed to aid in the feasibility assessment and enhance decision-making in microgrid projects.

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Overview of Techno-Economic Assessment
Simulation & Analysis tools for
Microgrids

2. 2
© 2016 Electric Power Research Institute, Inc. All rights reserved.
What is Feasibility (Techno-Economic) Assessment?
 Evaluate use cases for Microgrid & DERs
 Microgrid design
 DER sizing & Optimal dispatch
 First-order analysis of Costs & Benefits
 Identify challenges that need to be addressed in detailed design
and demonstration/implementation phases

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Study Process

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Microgrid design
Three driving aspects of the design:
– Technical requirements
– Capital & Operating Costs
– Policy
Technical specifications affect costs/benefits
Microgrid design
Policy
Costs/benefits
Technical
specs.

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Microgrid design: Software tools
Software tools combine:
Optimization algorithms
Heuristics
Databases
Outcome: A “good” idea of the
microgrid design
UI
SOLVER
MODEL
DATABASE

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Modeling Process
Overview
Inputs
Electrical &
Thermal Loads
Electricity & Gas
tariff data
DER data
Site Weather
Data
Outputs
Optimal DER
Mix & Capacity
DER Dispatch
Quantitative
Cost/Benefit
F Investment &
Financing
Objectives
Minimize Cost
Minimize Emissions
% Renewable Penetration
… Outage Duration
Constraints
Cost/Emissions Cap
Zero Net Energy
Specify DER
types/size/models
Optimization/Search
Engine

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Limitations
Optimization is a powerful tool,
but not every problem can be
solved, due to:
– Non-convexity,
– Prohibitively large number of
variables
Methods include relaxations
(might neglect important
design specifications)

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Addressing limitations
Execute
optimization
approach
Test design
feasibility on a
more realistic
model
Final
economic
analysis/
decision
making
Use engineering
judgement,
heuristics, previous
experience
New constraints
If infeasible
If feasible
Design
parameters

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Examples of software tools
 DER-CAM
– MILP Bilevel optimization approach
– Deterministic
– Computationally intensive
– Optimizes both dispatch and sizing
– Different versions include:
 Uses only 3-day types
 Steady-State power flow approximations
 Emergency day-types
 HOMER
– Smart-search based approach
– Dispatch is carried out using simple but robust dispatch rules
– Sizing is performed through a smart search algorithm
– New versions allow user-defined dispatch rules

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Handling uncertainty
Some of the design parameters might be unknown
– Greenfield projects with unknown load
– Electricity rates to establish
– Project ownership
This sort of uncertainty can be handled using sensitivity
analysis
– Scenarios for different values of the uncertain parameters
The resulting information should help decision making

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
EPRI Feasibility Projects

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Feasibility Assessment
Challenges
Outage Design Criteria
Value of
Resiliency/Reliability
Cost/Benefit
Perspective?
Existing vs New
Site
Data Availability Data Granularity
Deterministic
vs Stochastic
Model
Power Flow?
Thermal Flow?
Study Detail
vs
Time Spent

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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Together…Shaping the Future of Electricity