Cost-Effective Design of Grid-tied Community Microgrid

Abstract: This study aims to develop a cost-effective microgrid design that optimally balances the economic feasibility, reliability, efficiency, and environmental impact in a grid-tied community microgrid. A multi-objective optimization framework is employed, integrating HOMER Pro for system sizing with deep reinforcement learning (DRL). Sensitivity analyses are conducted to evaluate the system performance under varying load demand and renewable energy fluctuations, while an economic sensitivity assessment examines the impact of electricity prices and capital costs on the Levelized Cost of Energy (LCOE). The proposed microgrid configuration achieves high reliability, satisfying 100% of the load, even under adverse weather conditions. The proposed framework attains an efficiency of 91.99% while maintaining a carbon footprint of 302,747 kg/year, which is approximately 95% lower than that of the grid system. The economic analysis indicates a net present cost (NPC) of $4.83M with a competitive LCOE of $0.208/kWh. In addition, the operation cost is $201,473 per year with a capital investment of $1.42M, rendering it a financially viable alternative to conventional grid-dependent systems.This work can be valuable in identifying effective solutions for supplying reliable and cost-effective power to regional and remote areas.