A methodology to optimize benefits of microgrids

This paper proposes a generalized methodology to determine the optimal configuration of microgrids that maximizes its benefits. The technique proposed herein, incorporates a probabilistic modeling of variable loads and distributed generators into a deterministic power flow problem to solve an optimization problem. The losses from the power flow problem is monetized and supplied to the objective function as one of its input multiple cost functions. The optimization problem then concatenates the monetized losses, monetized emission and the cost components of generation into a single objective and then minimizes it. The optimization´s aim is to minimize the energy cost to the utility while maximizing loss reduction and emission reduction under all practical constraints. The proposed algorithm is applied to a real feeder in North America and the results showed a significant decrease in the cost of energy. This demonstrates the effectiveness of the methodology proposed in microgrid planning.