Microgrid as a Cost-Effective Alternative to Rural Network Underground Cabling for Adequate Reliability

Sanna Uski, Erkka Rinne and Janne Sarsama
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Sanna Uski: VTT Technical Research Centre of Finland Ltd., 02044 Espoo, Finland
Erkka Rinne: VTT Technical Research Centre of Finland Ltd., 02044 Espoo, Finland
Janne Sarsama: VTT Technical Research Centre of Finland Ltd., 02044 Espoo, Finland

Energies, 2018, vol. 11, issue 8, 1-16

Abstract: Microgrids can be used for securing the supply of power during network outages. Underground cabling of distribution networks is another effective but conventional and expensive alternative to enhance the reliability of the power supply. This paper first presents an analysis method for the determination of microgrid power supply adequacy during islanded operation and, second, presents a comparison method for the overall cost calculation of microgrids versus underground cabling. The microgrid power adequacy during a rather long network outage is required in order to indicate high level of reliability of the supply. The overall cost calculation considers the economic benefits and costs incurred, combined for both the distribution network company and the consumer. Whereas the microgrid setup determines the islanded-operation power adequacy and thus the reliability of the supply, the economic feasibility results from the normal operations and services. The methods are illustrated by two typical, and even critical, case studies in rural distribution networks: an electric-heated detached house and a dairy farm. These case studies show that even in the case of a single consumer, a microgrid option could be more economical than network renovation by underground cabling of a branch in order to increase the reliability.

Keywords: battery energy storage system (BESS); distribution network; islanded operation; micro combined heat and power (micro-CHP); microgrid; network outage; photovoltaics (PV); reliability; underground cable (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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