Optimum cluster of distributed generation systems for energy management within a virtual utility

Many remote communities in developing countries suffer from lack or weak grid connection. A reliable electric energy system is essential for the residential and small industrial applications. In modern smart grids, the concept of virtual utility is used to describe a cluster of hybrid Distributed Generation (DG) and storage systems. The optimum cluster of DG and storage systems within a virtual utility is essential for a reliable energy management system, to effectively supply the load demands. This requires the minimization of the Net Present Cost (NPC) of the cluster's investment. Among various economic evaluation software tools, very effective software according to recent research and projects is the Hybrid Optimization Model for Electric Renewables (HOMER). In this paper, a remote load is used as a case study for economic evaluation of a cluster of DG resources. The available resources for the case study include PV arrays, small wind turbines, and a Hydrogen Fuel cell system along with storage battery banks. Optimization and sensitivity analysis results are thoroughly presented and discussed.