Economic Analysis of Industrial Complex Microgrid (MG)with Six factories
Abstract
Background/Objectives: Microgrid (MG) is the new power grid that will lead the next generation. As a small power grid composed of decentralized power generation, construction cases are increasing and contributing to the expansion of renewable energy. In this paper, the economic feasibility was analyzed based on the case of Korea's first industrial complex MG.
Methods/Statistical analysis: The analysis was based on reliable national statistics data and official reports. Two cases were constructed. Case 1 analyzes the economics of the “market” of MG power equipment in the region that can be influenced by MG construction, and Case 2 analyzes the economics of 6 factories connected to MG.In addition, technology sales profits, blackout avoidance benefits, REC, SMP, etc. were reflected in benefits, and sensitivity analysis was performed for more accurate analysis.
Findings: In case 1, BCR(Benefit Cost Ratio) was 1.5 ~ 3.6 and NPV(Net present value) was over 0 at the discount rate of 4.5%. In the sensitivity analysis according to the change in discount rate, economic feasibility was high. In case 2, BCR was 0.6 ~ 1.3and NPV was -10 ~ 8 depending on the benefit period at a discount rate of 4.5%. In addition, based on the same investment cost, an extended study was conducted to compare the economics of different facility conditions and renewable energy discount rate(electric charges).It was found that the highest economic feasibility was secured when the renewable energy discount rate was continuously applied without the 'abolition' under the existing facility conditions.
Improvements/Applications: This paper analyzes the economics of a single MG. Future research will analyze the economics of multiple MG construction. In addition, we will analyze the economic impact on domestic grid operation when mutual autonomous electricity transactions are conducted within MG.
Keywords: microgrid, MG, renewable energy, ESS, PV, economic analysis, industrial complex
