Economically viable emissions reductions through industrial microgrid optimisation

Author(s): Joshua Watkins, Ali Arefi
a Hybrid Systems Australia, Perth, Australia
b College of Science, Health, Engineering and Education, Murdoch University, Perth, Australia
International Journal of Smart Grid and Clean Energy, vol. 8, no. 6, November 2019: pp. 781-789
ISSN: 2315-4462 (Print)
ISSN: 2373-3594 (Online)
Digital Object Identifier: 10.12720/sgce.8.6.781-789

Abstract: The optimisation of systems where engaging with a high volume of data is a critical task in engineering and information technology. This paper explores the use of optimisation tool in energy systems, that can be utilised in combination with the optimisation of communication systems. This paper examines the environmental impact of implementing economically competitive microgrids in industrial projects and offers a range of microgrid configurations that display notable environmental improvements when compared to the benchmark. This benchmark is a proposed AU$31.1m substation infrastructure upgrade to supply a hypothetical 60 MW industrial load through the centralised electricity network in Western Australia. With the assistance of HOMER (Hybrid Optimisation of Multiple Energy Resources) modelling software and industry data, a range of distributed energy resource configurations were modelled over a 25-year project life. Evaluations found that across economically viable topologies, an average reduction of 52% on CO2 gas emissions was observed. Mean initial capital expenses for featured microgrid systems were observed to be more than 6 times the benchmark, however mean emissions reductions were observed at 439.76 T/yr for every dollar invested. A set of featured architectures are presented utilizing combined heat and power equipped gas turbine, diesel generator, wind farm and vanadium redox flow battery bank.

Keywords: Microgrid, distributed energy resources, optimisation, sensitivity analysis, cost-effectiveness analysis, net present cost, levelised cost of energy, combined heat and power
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