Design combined heat and power microgrids

This paper deals with the design of community-scale microgrids. A generic system is considered consisting of solar photovoltaics, wind turbine, microturbine, battery array, and electric boiler. The microgrid is grid-connected and designed to supply both heat and power. It is constrained to meet 100% of the energy demand. An optimal design is found to minimize the cost of energy supply over a 20 year lifespan. The optimal design is analysed with respect to technology cost and environmental policy in the form of CO₂ taxation. Use of combined heat and power is found to lower cost of energy supply in all cases. CO₂ taxation is found to be ineffective in promoting greener power supply for this system unless coupled with reductions in renewable technology cost.