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Marginal cost of reliability improvement for standalone microgrids

Sakthivelnathan, N., Arefi, A.ORCID: 0000-0001-9642-7639, Lund, C., Mehrizi-Sani, A. and Stephens, D. (2021) Marginal cost of reliability improvement for standalone microgrids. In: 31st Australasian Universities Power Engineering Conference (AUPEC) 2021, 26 - 30 September 2021, Perth, WA

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The marginal cost of reliability improvement (MCRI) is a very useful measure to compare the cost-effectiveness of various standalone microgrid (SMG) systems. This measure helps in decision making on reliability level and imports and exports between SMGs. The MCRI can elucidate how a SMG system is going to deal with the change of reliability requirements by customers and energy traders. This paper proposes an MCRI evaluation algorithm for a microgrid (MG) over its 25-year lifespan. A case study is evaluated, which consists of renewable energy resources (RES) and a battery energy storage system (BESS) as reliability improvement (RI) alternatives. Two sensitivity analysis study are performed to answer the following research questions: What if is the cost of energy resources changes? and What if demand response (DR) is included as an alternative to RI. Furthermore, whether maximum reliability can be achieved with 100% renewable generating resources is also evaluated. The Monte Carlo Simulation (MCS) method is used to model the equipment failure. The linear regression approach is used to create an equation for loss of load reduction (LOLR), for the addition of resource mix as a function of LOLR and for the addition of individual RI alternatives. A Matlab optimization tool is used to find the MCRI.

Item Type: Conference Paper
Murdoch Affiliation(s): Engineering and Energy
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