A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend
Abstract
:1. Introduction
- Impact of peak load demand in microgrid are discussed. Then, peak load shaving in microgrids are demonstrated (Section 2).
- Potential benefits of microgrid peak shaving are reviewed and discussed in detail (Section 3).
- In order to examine the economic viability of peak load shaving in microgrids, a simple mathematical model is developed (Section 4)
- Several challenges of microgrid peak shaving are identified after performing an in-depth analysis of the state-of-the-art peak shaving strategies (Section 5).
- Future work and possible research areas worth exploring for microgrid peak shaving are directed (Section 6).
2. Peak Demand and Peak Shaving in Microgrid
3. Potential Benefits of Peak Load Shaving
3.1. Technical Benefits
3.1.1. Improved Power Quality
3.1.2. Efficient Energy Utilization
3.1.3. Reduced Energy Loss
3.1.4. Renewable Energy Integration
3.1.5. Power Reliability of Microgrid
3.1.6. Support for Reactive Power (VAR)
3.1.7. Efficient Use of T&D Infrastructure
3.2. Economic Benefits
3.2.1. Replacing Expensive Generators
3.2.2. Reduced Cost of Reserve Capacity
3.2.3. Reduced the Expense of Wear and Tear
3.2.4. Reduced Cost for Additional Fuel
3.2.5. System Upgrade Deferral
3.3. Environmental Benefits
4. Cost–Benefits of Peak Shaving
4.1. Annual Cost Saving
- where, = annual saving from reduced fuel consumption.
- = saving from the economic arbitrage.
- = saving from system upgrade.
- = savings from reduced losses.
- = saving from reduced carbon emission.
- (a)
- Cost Saving from Reduced Fuel Consumption
- (b)
- Saving from Economic Arbitrage
- (c)
- Saving from System Upgrade
- (d)
- Saving from Reduced Losses
- (e)
- Saving from Reduced Carbon Emission
4.2. Return of the Capital
4.3. Net Profit
5. Peak Shaving Strategies and Challenges
5.1. Peak Shaving Using DSM
- The installation of demand response solutions may have an impact on customers’ comfort levels.
- Customers may be unwilling to move their activity from peak to off-peak times. This is especially true in countries where the peak demand price has yet to be implemented.
- Implementing demand response strategies will enhance the complexity of the overall system operation.
- Advanced metering, control methods, communications systems, and information technologies are not fully available in the existing power systems. These information and communication technology (ICT) infrastructures need to be introduced which require multi–million dollar investment.
5.2. Peak Shaving Using ESS
- A fundamental challenge for such a system’s implementation is determining the ideal ESS size. The installing ESS at a random or non-optimal size can result in higher system losses and increased capital investment for storage.
- It is also difficult to schedule ESS for optimal performance.
- Storage–based peak shaving is more practical for grid application. However, it requires large-scale ESS installation which is a real concern. It is challenging to operate and maintain the large-scale ESSs in the grid.
- The high capital cost of ESS makes this peak shaving strategy impractical to employ.
5.3. Peak Shaving Using EVs
- Multiple EVs are required to provide peak shaving service as a single EV is unable to meet the peak demand. Thus, the discharge operation of a large number of EVs must be coordinated. However, owners’ may not be willing to hand over the control of their vehicles to a third party. Therefore, willingness of car owners’ is a real barrier for implementing this strategy.
- As EVs can only deliver electricity while parked, the key problem of this technique is the availability of EVs. Furthermore, electric vehicles are yet to be generally adopted.
- As electric vehicles have yet to be extensively adopted, parking spaces for them are plentiful. Furthermore, the require control system and necessary infrastructure for EV grid integration is not universally available. These could be the biggest obstacles to EV adoption in densely populated places.
- It is difficult to synchronize the charging and discharging of a large number of electric vehicles.
5.4. Peak Shaving Using Hybrid PV/ESS System
- The output of PV is constrained by its fluctuating nature.
- Energy storages are used to improve the availability and quality of microgrid supply. However, they require an efficient control strategy to manage the charge/discharge cycles.
- Coordination of renewable sources, storage system, and load are not straightforward/trivial.
6. Future Trends in Microgrid Peak Shaving
- Scheduling of ESS—Recently, there has been a growing interest in ESS–based peak shaving. Many attempts have been made to ensure optimal operation ESS. However, these approaches have significant flaws. Therefore, ESS is still require a robust and fully functional scheduling strategy for providing peak shaving service [87,88,89,90].
- Sizing of ESS—Economic benefit of storage–based peak shaving technique is directly impacted by the size of ESS. Also, size of ESS has major effect on peak shaving ability. Further research is required to determine optimum size of ESS for peak shaving application [112].
- Economic feasibility—The high capital cost of ESS makes this peak shaving strategy impractical to employ. To offset the high capital cost, an investigation is needed on the economic feasibility of the ESS. This can also be extended to developing high-efficiency, low-cost physical storage technologies.
- Distributed ESS—Application of ESS is more effective for grid peak shaving. However, installation of large-scale ESS is a practical issue. Also, operation and maintenance of large-scale ESSs in grid is challenging. Therefore, it will be interesting for reader to investigate the opportunity of distributed ESSs for providing peak shaving service in grid.
- Validity—Feasibility study for ESS-based peak shaving technique is crucial before implementing in real–world microgrid projects. To validate this technique, further studies need to be carried out for the perspective of small grids in rural locations with limited or no access to the primary grid.
- Assessing EV-based PS—As EVs can only deliver electricity while parked, the key problem of this technique is the availability of EVs [36,94]. Furthermore, electric vehicles are yet to be generally adopted [123,124]. Thus, EVs–based peak shaving will be more realistic for small isolated electric system such as an island or a remote area that is not connected to the main grid. Therefore, future study on EVs-based peak shaving can be conducted for the perspective of a remote isolated area to determine the maximum benefits of it.
- Smart home energy management system—For DSM-based peak shaving strategies, customers need to move their activities from peak to off-peak times. However, customers or end-users may not be willing to move their activities. This is especially true in countries where the peak demand price has yet to be implemented [84,85]. Future studies on this technique could concentrate on the use of DR in conjunction with a smart home energy management system (which includes improved metering infrastructure, sensing devices, enabling information and communication technology, and smart appliances, among other things) [82,125]. This reduces the need of customers’ willingness to follow the DSM peak shaving technique. However, technical assistant education is required to maximize the efficiency of DR.
- Application of DSM with ESS system—The implementation of demand response solutions may have an impact on customers’ comfort levels. In this particular, application of an ESS can help customers’ to perform regular activities while reducing their peak demand [82,125]. Therefore, future research should focus exclusively on how to employ DSM in coupled with the ESS system for peak shaving.
- Requirements of ICT infrastructures—The implementation of DR programme requires information and communication technology (ICT) infrastructures such as communications systems, advanced metering and control methods. However, these infrastructures are not fully available in today’s power systems [83]. Therefore, require ICT infrastructures need to be ready before implementing DR.
- Energy mix—Utilize of hybrid energy (PV, wind, hydropower, etc.) is another possible method to perform peak shaving. However, this technique has not much been deliberated in the existing literature. Therefore, readers should think about that possibility as well [96].
7. Conclusions
- This review article discusses the consequences of peak load shaving application, the recent popular topic for a microgrid system based on the latest literature.
- The significance of peak load in a microgrid system and the importance of minimizing the peak demand for economical and realistic operation are discussed.
- The advantages and positive influences of peak demand shaving for microgrid systems are presented after an extensive analysis.
- A numerical analysis of the cost-effectiveness of the peak shaving application for microgrid systems is discussed broadly to demonstrate the economic feasibility.
- Possible constraints of peak shaving applications for microgrid systems are identified after an in-depth investigation of the existing literature.
- The existing trends and prospective approaches for exploring other branches of microgrid applications with peak load shaving are well demonstrated.
- This review article has established a strong benchmark for future research into peak load shaving application in microgrid systems.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Abbreviations
O&M | Operation and maintenance |
LF | Load factor |
ESS | Energy storage system |
T&D | Transmission and distribution |
DSM | Demand-side management |
EV | Electric vehicle |
EVs | Electric vehicles |
PV | Photovoltaic |
RESs | Renewable Energy Sources |
DR | Demand response |
ICT | Information and communication technology |
QP | Quadratic programming |
PEV | Plug-in electric vehicle |
BESS | Battery energy storage system |
PS | Peak shaving |
EECS | Electrochemical energy conversion and storage |
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Rana, M.M.; Atef, M.; Sarkar, M.R.; Uddin, M.; Shafiullah, G. A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend. Energies 2022, 15, 2278. https://doi.org/10.3390/en15062278
Rana MM, Atef M, Sarkar MR, Uddin M, Shafiullah G. A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend. Energies. 2022; 15(6):2278. https://doi.org/10.3390/en15062278
Chicago/Turabian StyleRana, Md Masud, Mohamed Atef, Md Rasel Sarkar, Moslem Uddin, and GM Shafiullah. 2022. "A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend" Energies 15, no. 6: 2278. https://doi.org/10.3390/en15062278
APA StyleRana, M. M., Atef, M., Sarkar, M. R., Uddin, M., & Shafiullah, G. (2022). A Review on Peak Load Shaving in Microgrid—Potential Benefits, Challenges, and Future Trend. Energies, 15(6), 2278. https://doi.org/10.3390/en15062278