Optimal Energy Management and Feasibility Study of a Hybrid Energy System for a Remote Area

This paper investigates impacts of possible chances in energy policy and consumption behavior on optimal energy management and feasibility study of a hybrid energy system. The study was performed on a remote area near Esfarjan, a village located in Shahreza, Iran. In the main scenario, the current energy policy is applied while the consumption behavior of customers is studied by means of an incentive-based demand response algorithm. However, the sensitivity analysis scenario applies the near future condition that is gradually taking place by reducing the energy subsidies while customers are assumed to be inflexible. Impacts of uncertainties related to gas and electricity prices, environmental issues and the inflation rate were evaluated in the latter scenario. Simulations were done on six different system configurations for both scenarios. Results highlight the significant role of long-term energy policies in comparison with short-term consumption behavior of customers. It is also indicated that configurations involving renewable resources will become stronger rivals for configurations involving the external grid in the near future, which in turn results in more economical investments on renewable resources.