Heuristic Approach for Configuration of a Grid-Tied Microgrid in Puerto Rico

The high rates of cost of electricity that consumers are being charged by the utility grid in Puerto Rico have created an energy crisis around the island. This situation is due to the island's dependence on imported fossil fuels. In order to aid in the transition from fossil-fuel based electricity into electricity from renewable and alternative sources, this research work focuses on reducing the cost of electricity for Puerto Rico through means of finding the optimal microgrid configuration for a set number of consumers from the residential sector. The Hybrid Optimization Modeling for Energy Renewables (HOMER) software, developed by NREL, is utilized as an aid in determining the optimal microgrid setting. The problem is also approached via convex optimization; specifically, an objective function C(t) is formulated in order to be minimized. The cost function depends on the energy supplied by the grid, the energy supplied by renewable sources, the energy not supplied due to outages, as well as any excess energy sold to the utility in a yearly manner. A term for considering the social cost of carbon is also considered in the cost function. Once the microgrid settings from HOMER are obtained, those are evaluated via the optimized function C( t), which will in turn assess the true optimality of the microgrid configuration.;A microgrid to supply 10 consumers is considered; each consumer can possess a different microgrid configuration. The cost function C( t) is minimized, and the Net Present Value and Cost of Electricity are computed for each configuration, in order to assess the true feasibility. Results show that the greater the penetration of components into the microgrid, the greater the energy produced by the renewable sources in the microgrid, the greater the energy not supplied due to outages. The proposed method demonstrates that adding large amounts of renewable components in a microgrid does not necessarily translates into economic benefits for the consumer; in fact, there is a trade back between cost and addition of elements that must be considered. Any configurations which consider further increases in microgrid components will result in increased NPV and increased costs of electricity, which deem the configurations as unfeasible.