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The potential availability of renewable energy sources is unquestionable and the government is setting steep targets for renewable energy usage. Renewable‐based DGs, reduce dependence on fossil fuels, mitigate global climate change, ensure energy security, and reduce emissions of CO2 and other greenhouse gases. This study addresses microgrid system analysis with hybrid energy sources and reconfiguration simultaneously for efficient operation of the system. Microgrid zones are formulated categorically with the existing distribution system. In this study, wind, solar and small hydro‐based DGs are considered. Uncertainties of renewable power generation and load are also taken care in the optimization problem. A multi‐objective optimisation method proposed in this paper for optimal integration of renewable‐based DGs and reconfiguration of the network to minimise power loss and maximise annual cost savings. Optimal location and sizes of DG units are determined using gravitational search algorithm and general algebraic modelling system respectively. Optimal reconfiguration of the microgrid system is obtained using genetic algorithm. Simulation results are obtained for the IEEE 33‐bus system and compared with existing methods as available in the literature. Furthermore, this study has been carried out with a 24‐hr time‐varying distribution system. The simulation results show the efficiency and accuracy of the proposed technique.

Hybrid AC–DC microgrid is introduced as the future distribution network to utilise both benefits of alternative and direct currents. In such hybrid microgrid, AC and DC loads, renewable-based distributed generators (DGs), controllable DGs and energy storage systems are connected through separate AC and DC links. An up–down operation model of such hybrid microgrid is proposed which consists of system- and device-level. In the system-level, a mixed integer linear model is suggested to balance the generation and load considering the interconnection of AC and DC subgrids for minimising total operating cost of the system in a 24-hour period. In the device-level, a controller is suggested for power converter-based resources (i.e. intergrid inverter and battery) for controlling the voltage variations in AC and DC subgrids. The effectiveness of the proposed up–down operation model is demonstrated through simulation studies on a test hybrid microgrid.

One of the many barriers to decarbonization and decentralization of the energy sector in developing countries is the economic uncertainty. As such, this study scrutinizes economics of three grid-independent hybrid renewable-based systems proposed to co-generate electricity and heat for a small-scale load. Accordingly, the under-study systems are simulated and optimized with the aid of HOMER Pro software. Here, a 20-year average value of discount and inflation rates is deemed a benchmark case. The techno-economic-environmental and reliability results suggest a standalone solar/wind/electrolyzer/hydrogen-based fuel cell integrated with a hydrogen-based boiler system is the best alternative. Moreover, to ascertain the impact of economic uncertainty on optimal unit sizing of the nominated model, the fluctuations of the nominal discount rate and inflation, respectively, constitute within the range of 15–20% and 10–26%. The findings of economic uncertainty analysis imply that total net present cost (TNPC) fluctuates around the benchmark value symmetrically between $478,704 and $814,905. Levelized energy cost varies from an amount 69% less than the benchmark value up to two-fold of that. Furthermore, photovoltaic (PV) optimal size starts from a value 23% less than the benchmark case and rises up to 55% more. The corresponding figures for wind turbine (WT) are, respectively, 21% and 29%. Eventually, several practical policies are introduced to cope with economic uncertainty.