How can a microgrid improve the cost of energy?

These consist of hospitals, schools and Small and Medium Enterprises (SMEs) such as maize milling, welding loads that consume energy throughout the day. A study by showed that the availability of anchor customers reduces the Levelised Cost of Energy of the microgrid thus improving its affordability.

Why do we need a smart grid and a microgrid?

The competitive landscape among energy providers and distributors has empowered consumers to not only save money on their energy bills but also incorporate sustainable energy sources into the grid. To efficiently manage electricity distribution, deregulated power systems must include a smart grid and microgrid (MG).

Is battery storage a good option for microgrids?

Battery storage is one of the major options for energy storage in systems utilising solar PV and/or wind energy . In , a study was carried out on the optimal sizing of energy storage for microgrids.

What is solar PV based microgrid?

The research further seeks to formulate and design an optimum, robust, sustainable and economical solar PV based microgrid solution for electrification of a remote area focusing on green areas that currently have no access to electricity. The objective is to achieve a system that is cost effective, reliable and sustainable.

What is a microgrid system?

The microgrids can be defined as small, local distribution systems including a set of microsources such as microturbines, fuel cells, photovoltaic (PV) arrays and wind turbines, storage systems, such as flywheels, energy capacitors, and batteries and controllable and uncontrollable loads.

Are smart grids the future of electrical energy?

For demand-side and energy flow management an energy management system is used and takes into account the economic aspects, operational constraints, and the fulfillment of supply and demand (Elkholy et al. 2022a). Smart grids are considered the future of electrical energy in the world.