Operating Cost Analysis of Microgrid Including Renewable Energy Sources and a Battery Under Dynamic Pricing

In this paper, minimization of operating cost of DC microgrids is formulated. Utility grid, solar, wind and battery is associated with this formulation. In this optimization problem, both with and without losses are considered in the power flow model. Impact of renewable energy sources on reduction in operating cost is discussed. Based on the solar radiation and air density, power generation from solar and wind are calculated respectively. Heuristic method is used to solve this minimization problem. To analyze the operating cost, a six-bus customized system is used. To calculate the cost structure, three different cases are considered. The first case considers the system without any renewable energy sources or battery storage. In the second case, a solar and a Wind Energy Conversion system are added to the system and in the third case, the battery is included with the existing system. With the inclusion of renewable energy system, dynamic pricing and various load conditions, the proposed algorithm is minimizing the operating cost considerably.