Techno-Economic Analysis of Renewable-Energy-Based Micro-Grids Considering Incentive Policies

Renewable-energy-based microgrids (MGs) are being advocated around the world in response to increasing energy demand, high levels of greenhouse gas (GHG) emissions, losses, and depletion conventional resources. However, investment cost MGs besides low selling price main grid two challenges realize developing countries such as Iran. For this reason, government should define some incentive policies attract investor attention MGs. This paper aims develop a framework for optimal planning renewable energy-based MG considering policies. To investigate effect on formulation, three different introduced pilot system The minimum penetration rates RESs receive defined 20% 40% scenarios. results show that proposed reduce MG’s total net present (NPC) amount carbon dioxide (CO2) emissions. maximum NPC CO2 reduction comparison with base case (with policies) 22.87% 56.13%, respectively. simulations conducted using hybrid optimization model electric renewables (HOMER) software.