Optimization of generation cost in a microgrid

In this paper is determined the optimal power that needs to be generated by the units in a microgrid so that the total generation cost should be minimum at the consumer premises. The optimization is performed for the steady-state condition of the system. A microgrid is a small-scale power grid that can be operated independently or in combination with the area's main electrical grid. A microgrid can comprise multiple renewable energy sources, such as wind turbines, photovoltaic panels, micro-hydro generators, biomass, fuel cells and storage units. The case study is performed for a microgrid that comprises six generating units and one load. The installed capacity of the generating units is 737 kW, while the load demand is 454 kW.