Abstract: One challenge in designing a microgrid system is determining the optimal size of energy storage system (ESS). Sizing of ESS has become more complex due to the independent power and energy ratings inherent in battery storage systems (BSS).
In a microgrid, energy storage performs multiple functions, such as ensuring power quality, performing frequency and voltage regulation, smoothing the output of renewable energy sources, providing backup power for the system, and playing a crucial role in cost optimization.
A microgrid can save between 433 hours to 106 hours of energy consumption. This results in an annual cost savings of approximately $150,000 to $154,000 (from $610,000 to $460,000), which is a roughly 25% reduction in energy costs. Furthermore, the microgrid installation is estimated to reduce 1,000+ tons of carbon emissions.