Economic and Environmentally Efficient Energy Management System for Optimal Microgrid Operations

Olayinka Samuel Obafemi, University of Texas at El Paso


The aim of this thesis is to study and understand the economic analysis of integrating renewable energy resources for the purpose of improving the system grid, identifying and monetizing benefits and cost. This thesis discusses the approach taken and solution created to tackle the current problems facing the production and consumption of electricity and how the microgrid has become a platform for improvement in power system operation. A microgrid in islanded and connected mode are simulated using Homer Pro for optimization and its results help gain an insight into analyzing and monetizing cost and benefits with one common goal in mind, i.e., meeting consumers demand at all times. Another scenario that is considered is the environmental impact of providing electricity to consumers. The impact of carbon emission on the environment has been a major issue for most communities, government. Policy makers continuously find ways to create laws and incentives that encourage the reduction of carbon emission. Five cases are examined in this study, with each case uniquely performing cost and benefits analysis, and the end result identifies the optimum solution. This project primarily reviews a conventional energy and brings to light, the effect of changes in fuel price and how it affects the cost of producing electricity. In this thesis, a diesel generator, a wind turbine, two solar panels, and a battery storage form the microgrid system and the easy integration of renewable energy sources show how the microgrid has a better chance of carbon emission reduction, and cost minimization. The first case simulates only a conventional energy without a storage system and the results are displayed. The second, third, fourth, and fifth cases simulate the conventional energy with the inclusion of different options of renewable energy sources and the case with the best result is selected. The two different options considered are islanded mode and connected mode and each option takes into account five cases and the optimum solution is provided. The main contribution of this thesis is to provide an energy management system (EMS) that will minimize cost through simulations, use renewable energy resources to reduce carbon emission, and find ways to monetize benefits such as purchasing electricity from or selling electricity to the main grid while in connected mode.

Subject Area

Industrial engineering

Recommended Citation

Obafemi, Olayinka Samuel, "Economic and Environmentally Efficient Energy Management System for Optimal Microgrid Operations" (2018). ETD Collection for University of Texas, El Paso. AAI10822580.