Optimal Sizing of a Sustainable and Climate Resilient Microgrid System

Abstract

The research investigates the potential of an off-grid microgrid system powered by renewable energy sources in Barangay Ransang, a remote village in Palawan. The study aims to determine the renewable energy potential, identify the most economical combination of renewable energy sources, and evaluate the financial benefits of the proposed system. The researchers used HOMER software to simulate and optimize the microgrid system, identifying a 2.0 MWp solar PV array, 0.840 MW diesel generators, and a 1.0 MWh battery energy storage system as the optimal solution. This configuration provides 40% renewable fraction and a cost of energy of $0.287/kWh. The Simplified Planning Tool (SPT) validated the results, confirming the feasibility of the proposed microgrid system. The hybrid power plant's levelized cost of electricity (LCOE) is $0.287/kWh, significantly cost-saving compared to a diesel-only system with an LCOE of $0.424/kWh. Implementing this off-grid microgrid system in Barangay Ransang is projected to result in annual savings of $578,219.10 in Universal Charge on Missionary Electrification (UCME) subsidy, further contributing to the project's economic viability. The findings can serve as a reference for other off-grid electrification projects in the Philippines and beyond, offering potential benefits to remote areas waiting to be electrified.