IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v184y2016icp103-118.html
   My bibliography  Save this article

Economic evaluation of grid-connected micro-grid system with photovoltaic and energy storage under different investment and financing models

Author

Listed:
  • Han, Xiaojuan
  • Zhang, Hua
  • Yu, Xiaoling
  • Wang, Lina

Abstract

For the generation planning problem of grid-connected micro-grid system with photovoltaic (PV) and energy storage system (ESS), taking into consideration of photovoltaic subsidy policy, two-part tariff and time-of-use (TOU) power price, on the base of cost-benefit analysis (CBA), a generation planning model of micro-grid system including low-carbon economy is established with the objective of the maximum lifecycle net profit in this paper. Many optimization algorithms such as the particle swarm optimization (PSO), artificial fish swarm (AFS), genetic algorithm (GA), Artificial Bee Colony (ABC) algorithm and Interior-point algorithm are respectively used to solve the model for comparison analysis. The generation planning results of micro-grid system and its economic benefits are compared with the above five optimization algorithms from the actual data in a certain area of Shanghai in China. A simulation tests show that the economic benefit obtained by the PSO algorithm is obviously higher than the others. Meanwhile for the financing problems of micro-grid system with small and medium PV system, the user-self-investment model, third-party financing model and joint venture model are introduced into the micro-grid system, compared with the economic performance of the three models. The simulation results show that third-party financing model can reduce owners’ upfront investment for micro-grid system, and both owners and third-party financing providers can benefit from it, which is an effective method to solve the financing difficulty and popularize PV applications.

Suggested Citation

  • Han, Xiaojuan & Zhang, Hua & Yu, Xiaoling & Wang, Lina, 2016. "Economic evaluation of grid-connected micro-grid system with photovoltaic and energy storage under different investment and financing models," Applied Energy, Elsevier, vol. 184(C), pages 103-118.
  • Handle: RePEc:eee:appene:v:184:y:2016:i:c:p:103-118
    DOI: 10.1016/j.apenergy.2016.10.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916314325
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2016.10.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Borhanazad, Hanieh & Mekhilef, Saad & Gounder Ganapathy, Velappa & Modiri-Delshad, Mostafa & Mirtaheri, Ali, 2014. "Optimization of micro-grid system using MOPSO," Renewable Energy, Elsevier, vol. 71(C), pages 295-306.
    2. Stadler, Michael & Cardoso, Gonçalo & Mashayekh, Salman & Forget, Thibault & DeForest, Nicholas & Agarwal, Ankit & Schönbein, Anna, 2016. "Value streams in microgrids: A literature review," Applied Energy, Elsevier, vol. 162(C), pages 980-989.
    3. Schade, Burkhard & Wiesenthal, Tobias, 2011. "Biofuels: A model based assessment under uncertainty applying the Monte Carlo method," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 92-126, January.
    4. Ma, Tao & Yang, Hongxing & Lu, Lin & Peng, Jinqing, 2015. "Pumped storage-based standalone photovoltaic power generation system: Modeling and techno-economic optimization," Applied Energy, Elsevier, vol. 137(C), pages 649-659.
    5. Ekren, Orhan & Ekren, Banu Y., 2010. "Size optimization of a PV/wind hybrid energy conversion system with battery storage using simulated annealing," Applied Energy, Elsevier, vol. 87(2), pages 592-598, February.
    6. Zhang, Sufang, 2016. "Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China," Energy Policy, Elsevier, vol. 95(C), pages 458-467.
    7. Reza Arghandeh & Jeremy Woyak & Ahmet Onen & Jaesung Jung & Robert P. Broadwater, 2014. "Economic Optimal Operation of Community Energy Storage Systems in Competitive Energy Markets," Papers 1407.0433, arXiv.org, revised Sep 2014.
    8. Clarke, Joshua & McLeskey, James T., 2015. "Multi-objective particle swarm optimization of binary geothermal power plants," Applied Energy, Elsevier, vol. 138(C), pages 302-314.
    9. Arghandeh, Reza & Woyak, Jeremy & Onen, Ahmet & Jung, Jaesung & Broadwater, Robert P., 2014. "Economic optimal operation of Community Energy Storage systems in competitive energy markets," Applied Energy, Elsevier, vol. 135(C), pages 71-80.
    10. González, Arnau & Riba, Jordi-Roger & Rius, Antoni & Puig, Rita, 2015. "Optimal sizing of a hybrid grid-connected photovoltaic and wind power system," Applied Energy, Elsevier, vol. 154(C), pages 752-762.
    11. Di Lorenzo, Giuseppina & Pilidis, Pericles & Witton, John & Probert, Douglas, 2012. "Monte-Carlo simulation of investment integrity and value for power-plants with carbon-capture," Applied Energy, Elsevier, vol. 98(C), pages 467-478.
    12. Sufang Zhang, . "Innovative Business Models and Financing Mechanisms for Distributed Solar Photovoltaic (DSPV) Deployment in China," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 6, pages 161-191, Economic Research Institute for ASEAN and East Asia (ERIA).
    13. Nishimura, A. & Hayashi, Y. & Tanaka, K. & Hirota, M. & Kato, S. & Ito, M. & Araki, K. & Hu, E.J., 2010. "Life cycle assessment and evaluation of energy payback time on high-concentration photovoltaic power generation system," Applied Energy, Elsevier, vol. 87(9), pages 2797-2807, September.
    14. Luo, Xing & Wang, Jihong & Dooner, Mark & Clarke, Jonathan, 2015. "Overview of current development in electrical energy storage technologies and the application potential in power system operation," Applied Energy, Elsevier, vol. 137(C), pages 511-536.
    15. Cui, Borui & Gao, Dian-ce & Wang, Shengwei & Xue, Xue, 2015. "Effectiveness and life-cycle cost-benefit analysis of active cold storages for building demand management for smart grid applications," Applied Energy, Elsevier, vol. 147(C), pages 523-535.
    16. Arnau González & Jordi-Roger Riba & Antoni Rius, 2015. "Optimal Sizing of a Hybrid Grid-Connected Photovoltaic–Wind–Biomass Power System," Sustainability, MDPI, vol. 7(9), pages 1-20, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    2. Koirala, Binod Prasad & van Oost, Ellen & van der Windt, Henny, 2018. "Community energy storage: A responsible innovation towards a sustainable energy system?," Applied Energy, Elsevier, vol. 231(C), pages 570-585.
    3. Kocaman, Ayse Selin & Modi, Vijay, 2017. "Value of pumped hydro storage in a hybrid energy generation and allocation system," Applied Energy, Elsevier, vol. 205(C), pages 1202-1215.
    4. Duchaud, Jean-Laurent & Notton, Gilles & Darras, Christophe & Voyant, Cyril, 2019. "Multi-Objective Particle Swarm optimal sizing of a renewable hybrid power plant with storage," Renewable Energy, Elsevier, vol. 131(C), pages 1156-1167.
    5. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.
    6. Ogunjuyigbe, A.S.O. & Ayodele, T.R. & Akinola, O.A., 2016. "Optimal allocation and sizing of PV/Wind/Split-diesel/Battery hybrid energy system for minimizing life cycle cost, carbon emission and dump energy of remote residential building," Applied Energy, Elsevier, vol. 171(C), pages 153-171.
    7. Javed, Muhammad Shahzad & Song, Aotian & Ma, Tao, 2019. "Techno-economic assessment of a stand-alone hybrid solar-wind-battery system for a remote island using genetic algorithm," Energy, Elsevier, vol. 176(C), pages 704-717.
    8. Duchaud, Jean-Laurent & Notton, Gilles & Fouilloy, Alexis & Voyant, Cyril, 2019. "Hybrid renewable power plant sizing – Graphical decision tool, sensitivity analysis and applications in Ajaccio and Tilos," Applied Energy, Elsevier, vol. 254(C).
    9. Theo, Wai Lip & Lim, Jeng Shiun & Ho, Wai Shin & Hashim, Haslenda & Lee, Chew Tin, 2017. "Review of distributed generation (DG) system planning and optimisation techniques: Comparison of numerical and mathematical modelling methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 531-573.
    10. Javed, Muhammad Shahzad & Ma, Tao & Jurasz, Jakub & Ahmed, Salman & Mikulik, Jerzy, 2020. "Performance comparison of heuristic algorithms for optimization of hybrid off-grid renewable energy systems," Energy, Elsevier, vol. 210(C).
    11. Parra, David & Norman, Stuart A. & Walker, Gavin S. & Gillott, Mark, 2016. "Optimum community energy storage system for demand load shifting," Applied Energy, Elsevier, vol. 174(C), pages 130-143.
    12. Akbas, Beste & Kocaman, Ayse Selin & Nock, Destenie & Trotter, Philipp A., 2022. "Rural electrification: An overview of optimization methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    13. Akbar Maleki & Marc A. Rosen & Fathollah Pourfayaz, 2017. "Optimal Operation of a Grid-Connected Hybrid Renewable Energy System for Residential Applications," Sustainability, MDPI, vol. 9(8), pages 1-20, July.
    14. Guo, Shaopeng & Liu, Qibin & Sun, Jie & Jin, Hongguang, 2018. "A review on the utilization of hybrid renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 1121-1147.
    15. Terlouw, Tom & AlSkaif, Tarek & Bauer, Christian & van Sark, Wilfried, 2019. "Multi-objective optimization of energy arbitrage in community energy storage systems using different battery technologies," Applied Energy, Elsevier, vol. 239(C), pages 356-372.
    16. Husein, Munir & Chung, Il-Yop, 2018. "Optimal design and financial feasibility of a university campus microgrid considering renewable energy incentives," Applied Energy, Elsevier, vol. 225(C), pages 273-289.
    17. Gonzalez, Arnau & Riba, Jordi-Roger & Esteban, Bernat & Rius, Antoni, 2018. "Environmental and cost optimal design of a biomass–Wind–PV electricity generation system," Renewable Energy, Elsevier, vol. 126(C), pages 420-430.
    18. Yang, Xiuyuan & Xu, Minglu & Xu, Shouchen & Han, Xiaojuan, 2017. "Day-ahead forecasting of photovoltaic output power with similar cloud space fusion based on incomplete historical data mining," Applied Energy, Elsevier, vol. 206(C), pages 683-696.
    19. Li, Zhengshuo & Guo, Qinglai & Sun, Hongbin & Wang, Jianhui, 2015. "Storage-like devices in load leveling: Complementarity constraints and a new and exact relaxation method," Applied Energy, Elsevier, vol. 151(C), pages 13-22.
    20. Hassan, Aakash & Al-Abdeli, Yasir M. & Masek, Martin & Bass, Octavian, 2022. "Optimal sizing and energy scheduling of grid-supplemented solar PV systems with battery storage: Sensitivity of reliability and financial constraints," Energy, Elsevier, vol. 238(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:184:y:2016:i:c:p:103-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.