1. Introduction
Global greenhouse gas (GHG) emissions have risen dramatically as a result of the exponential increase in the demand for energy and the use of conventional energy resources. Using renewable energy sources such as solar, wind, and hydropower or a combination of conventional and renewable energy sources is the most effective strategy to address this issue. These hybrid energy systems will not only meet our energy needs but also reduce greenhouse gas emissions and advance the worldwide environmental conservation movement.
Microgrids are majorly designed for supplying electricity to the load demands of a specific infrastructure, such as the residential, commercial, and industrial sectors. The design of a microgrid is heavily dependent upon the local environment and electricity demand conditions [
1,
2,
3]. The environmental conditions aid in the selection of appropriate renewable energy resources, such as solar, wind, biomass, and hydro, whereas the energy demand affects the selection of the standalone or grid-connected operation of the microgrid as well as the size selection of the energy resources.
A standalone microgrid powered by locally available renewable energy resources may be a preferable option for decentralized and remote power distribution. Such activities, however, are problematic because of the stochastic nature of solar and wind energy resources [
4], which may produce significant uncertainty in a standalone microgrid. Power system reliability has always been a crucial challenge for a standalone renewable microgrid due to the significant variance in both power usage and power output [
5]. Furthermore, frequency and voltage fluctuations can occur as a result of rapid and unexpected changes in power consumption in the distribution system, resulting in system instability [
6,
7].
Grid-connected microgrid structures are preferred for those locations that are present in the developed region and where the grid infrastructure is easily available with the lowest grid power prices. This microgrid configuration does not only compensate for the local energy demands without any major power quality issues but can also sell any excess energy generated from the renewable energy resources to the grid [
8,
9]. This system design configuration has much lower energy generation and transportation costs as it readily utilizes the grid infrastructure. The capital cost of the system is also much lower than the standalone system as the size of renewable energy components is small, and less storage backup is required.
The utilization of solely renewable energy resources for energy generation is a better option for most locations in the world; however, the high costs of renewable systems make this option less suitable for places such as the Middle East, where fuel prices are much lower than in other areas and where the use of hybrid systems is a very viable option [
10]. However, global warming has generated a considerable increase in temperature throughout the years, altering global climatic conditions. Climate change has brought new difficulties in the form of torrential rains, flooding, and cyclones around the world, particularly in the nations most exposed to rapid climatic changes. To combat global warming, a rapid transition to renewable energy generation is the main goal at the global level. Therefore, the primary research objective of most global renewable-energy-based research studies is how to develop a power system that is more robust, clean, and dependable. Therefore, this paper, we propose a renewable-energy-based microgrid to supply the King Saud University campus, Riyadh, which is expected to reduce the cost of the supply of electricity to the university community.
The rest of this paper is divided into different sections. Each section explains a different aspect of the research work. The literature review is presented in
Section 2.
Section 3 describes the site selected for the research study as well as the load and system performance assessment criteria.
Section 4 describes the existing system characteristics. The renewable energy potential of both the study location and Saudi Arabia is presented in
Section 4 and
Section 5, respectively.
Section 6 discusses the system performance criteria,
Section 7 explains the existing system, and proposed microgrid proposed in this paper is presented in
Section 8. The system model is provided in
Section 9. In the same way, the economic and emission comparisons of different design options are presented in
Section 10 and
Section 11, respectively.
Section 12 and
Section 13 provide the sensitivity analysis and a comparison of this research with other existing papers respectively, and a conclusion as to the optimal system configuration is also provided in
Section 13 in Saudi Arabia.
2. Literature Review
This section investigates the previous and recent literature related to the optimum design of microgrids across the globe. Drawbacks and shortcomings and the differences between them and this paper are also outlined. Furthermore, since the microgrid is site-specific, it is clear that there is no study of this type of microgrid in the proposed study area. In addition, this section identifies the novelty of the proposed system design method and a sensitivity study of various system parameters.
Given the above, many efforts have been made in the literature toward the optimum design of renewable energy microgrids across the globe. Such efforts include the works presented by the authors of [
11,
12,
13]. These studies investigate the potential for renewable energy to mitigate the impacts of carbon dioxide emissions on the socio-economic development of the world’s main consumer market [
1,
2,
3]. The findings support that carbon dioxide emissions have undeniably negative consequences for economic growth and human prosperity, and the overall implications of the relationship between sustainable energy and CO
2 emissions on human socioeconomic development are detrimental [
14,
15,
16,
17]. There is a need to work on the development and deployment of renewable energy generation over a considerable portion of every state to achieve the global objectives of green energy generation.
The possibility of installing a PV hybrid-energy microgrid at a new industrial city in Jeddah was presented in [
18]. The optimum design was developed in HOMER software Version 3.13. In this design, the best system configuration was determined considering the original cost, ongoing cost, cost per unit, and total system net present value (NPV). However, the design ignored the environmental aspect of the proposed system. In the same country, the authors of [
19] designed a microgrid for the Yinbu region of the Kingdom. The design objective was the economic development of a microgrid for the region, and the study considered the NPC, the levelized cost of energy (LCOE), and technical variables such as the availability index and loss of power supply probability (LPSP). In another development, HOMER software Version 3.13 was used in the design of a hybrid microgrid for a rural community in India, as presented in [
20]. The research showed that it would be more economical if solar energy was the primary source of power for the site under consideration. Other factors used in this design included the load demand, derating factors, and the lifetime of the project. Similarly, this design ignored the environmental issues.
Recently, mixed-integer programming was used to design a hybrid renewable energy microgrid by considering the aging of the battery storage. In the same design, the use of a superconductor offered the possibility of reducing battery storage degradation. The proposed model was tested in some special loads in Columbia. The advantage of using the degradation factor was presented in the design, and the result showed that neglecting the battery degradation factor could overestimate the system energy, not the supply. This could affect the system benefit, as shown in [
21]. In [
22], the Internet of Things was used in conjunction with adaptive optimization and control for the optimum utilization of energy by residential appliances. The proposed method showed the benefit to all prosumers with the aid of real-time monitoring and controller design. Furthermore, the model has a self-healing ability and the possibility of improving the battery life. However, if more sources are introduced, the model might not be optimum.
Furthermore, three stages were proposed for the optimal sizing of network microgrids, considering resilience factors in resilience constraints [
23]. The stages used in the optimum design were the power between the upstream and network microgrids and the upstream part of the network. The second part was the implementation of decisions in state one, and the last phase was the resynchronization of the unintentional island of the microgrid. The proposed optimization problem might not be optimum when other sources are added; furthermore, sensitivity analyses could have been carried out on other system parameters.
Several research studies have examined the design of microgrid systems for certain locations/buildings, such as university campuses, structures, and particular areas. One such research study is [
24], which involved feasibility studies for the creation of a microgrid for the King Abdullah campus of the Azad Jammu and Kashmir University in Pakistan. Solar energy was incorporated into the architecture as a hybrid microgrid framework. According to the study’s findings, the suggested hybrid microgrid system, which uses solar energy as its green energy source, can provide the required load demand while achieving the lowest cost of energy (COE) and being the most effective and dependable. Moreover, the authors of [
25] thought about designing a hybrid microgrid for Eskisehir Osmangazi University with a diesel generator, grid, and other components.
Similarly, one study [
26] conducted a feasibility study for the design of a hybrid microgrid for Assiut University, utilizing HOMER software with a main focus on PV system sizing and considering centralized and decentralized load demands. This approach was adopted to decrease the overall system finances while assuring reliability and efficient performance. It was concluded that the system performance is better when the centralized load demand configuration is selected for the microgrid design. In addition, a solar, grid, and battery microgrid was designed for Abdelmalek Essaâdi University in Morocco [
27]. The authors concluded that the proposed system configuration was capable of compensating for the energy load demands with a COE as low as 0.187 USD/kWh, with solar PV as the highest energy contributor.
A techno-economic analysis of a microgrid on the campus of Madinah University was proposed in [
28]. The authors analyzed PV and wind energy and their combination as three different configurations for selecting the solution with the lowest economic and environmental footprint. The findings from the research concluded that for current load requirements and design constraints, the PV system could provide a lower COE of around 0.051 USD/kWh, with a payback period of 18.6 years, and could be considered an optimal microgrid design configuration. Similarly, a combined heat and power microgrid design for a remote community in Canada was presented in [
29]. They considered different approaches to analyzing the system variables and utilized different energy resources for the microgrid design. They concluded that a microgrid structure with solar thermal, wind, hydro, and fuel cells as energy resources was the optimal system configuration, with a COE of around −0.0245 USD/kWh and a reduced diesel consumption of around 71%.
In another development, the authors of [
30] considered the design of an optimal microgrid for an urban university campus. Both grid-connected and isolated microgrid configurations were considered for their load demand compensations by considering solar power, wind and batteries, and energy resources. Eventually, the researchers concluded that the grid-connected configuration can reduce the COE by half when compared to the islanded model and is more suitable for the current load conditions. However, the proposed method could be more complicated to apply when introducing more resources into the design. In a similar development, the authors of [
31] conducted a techno-economic analysis of a PV, wind, and biomass energy resource-based microgrid for a university campus. This microgrid was also integrated with hybrid energy storage systems to achieve autonomy. It was observed that the proposed system, which used PV, wind, and biomass as energy resources, was capable of providing the required load demands and that the integration of hybrid energy storage systems with this configuration could increase the autonomy of the system by up to 99%. They also concluded that the excess energy generated by the optimal system configuration could be utilized to compensate for the thermal load demands of the campus. Other analyses, such as environmental and other sensitivity studies, were ignored in the design.
Furthermore, the authors of [
32] performed a microgrid design and feasibility study for KIIT University, Campus 3. They considered solar and wind as renewable energy resources for designing a microgrid structure for the university campus. A sensitivity analysis was implemented to assess the reliability of the system, and it was concluded that the system configuration using solar and wind as renewable energy resources was the most cost-effective and reliable solution for the microgrid designed. In the same vein, the design of an optimal microgrid structure for another university campus with an unreliable grid connection was investigated in [
33]. They proposed a novel methodology based on a genetic algorithm and dynamic programming to optimally size the microgrid components and control the energy flow. They concluded that the proposed microgrid structure, with PV panels and a battery, was the optimal system configuration that provided the lowest economic values while assuring better reliability.
In Saudi Arabia, the authors of [
34] developed an optimal microgrid structure for the deployment of renewable energy resources in the Yanbu region of the Kingdom. They evaluated the optimal system design by considering the COE and NPC as the main economic parameters, utilizing the Giza Pyramids Construction (GPC) optimization algorithm. They concluded that the a solar and biomass hybrid microgrid structure was the most optimal solution with the lowest economical values. In the same country, the authors of [
35] performed a techno-economic feasibility analysis for a microgrid design for the Baha University building. They developed a microgrid using solar, wind, and a fuel cell as energy resources and analyzed the system’s performance under two different optimization algorithms. They concluded that the NPC and COE of the proposed system were very much affected by the initial cost considered for the solar and fuel cell systems, while the cost of the battery had the least effect.
For analyzing and assessing microgrids, numerous computer-aided design approaches are available. HOMER is well-known computer software that is used to effectively build power system models for techno-economic analyses. It also allows for the comparison of various design configurations so that the optimal design configuration may be finalized. HOMER examines a microgrid that may be classified as a standalone or hybrid microgrid in three stages: modeling, optimization, and sensitivity analysis. The HOMER software utilizes all these parameters to assess every possible system design configuration and provides the most optimal techno-economic analysis. Furthermore, the optimum design of a microgrid is site-specific and depends on many factors, such as economic and social factors and system demand, to mention just a few. In addition, the new Sustainable Development Goals (SDGs) 7, 12, and 13 of the United Nations demand measures that combine environmental conservation with economic growth. Additionally, none of the previous works were designed for the university campus under consideration.
This research work is aimed at designing a cost-effective, green, and reliable hybrid microgrid structure for the university campus in Riyadh, Saudi Arabia, by considering the solar and wind energy resources available on the university premises. The renewable energy potential in Saudi Arabia is immense, and the proper utilization of this potential can revolutionize the energy generation sector of Saudi Arabia in general. This research work can be considered a benchmark for assessing the microgrid potential in Saudi Arabian Universities specifically and for any commercial or industrial sector in general. Therefore, this research article explores the potential for renewable energy in Riyadh, Saudi Arabia, to compensate for the energy demands of King Saud University. The main objective of this study is to design a renewable-energy-based microgrid structure that is more economically feasible while also being reliable and energy efficient.
From the above-mentioned literature, it can be seen that the optimum design of a microgrid can be achieved economically or technically. In some cases, it may be a hybrid of the two techniques. Furthermore, these techniques can be categorized as a probabilistic, iterative, or trade-off methods. However, these methods are time-consuming and cause difficulty when performing sensitivity analyses. In addition, it has been established that the optimum design of a renewable energy system is site-specific and depends on many factors. In this case, the use of HOMER software is proposed due to its ability to consider many decision variables. In this design, the software takes the rated power of each unit and battery storage charging and discharging characteristics at each interval. In the same vein, the proposed approach allows for the determination of the emissions into the atmosphere. Given these factors, this paper proposes the use of HOMER software for the optimum design of a microgrid. In addition, it proposes a sensitivity analysis to study the effects of some parameters on the optimum design of the proposed microgrid.
6. System Performance Assessment Criteria
HOMER an optimization software utilized in this research work to assess the system design and performance under the conditions of different economic variables. The design of a cost-effective hybrid microgrid with the lowest economical parameters is considered an optimal system design for the respective electrical load requirements. The main objective of utilizing this software is to assess the designed system as well as the existing system over a sum of well-known economic variables to first analyze the existing system and then design a cost-effective, efficient, and reliable microgrid structure according to those predefined economic variables.
The proposed software utilizes various repeated algorithms to determine different types of costs associated with the system design, including the initial capital cost, operation and maintenance costs, cost of energy (COE), net present cost (NPC), replacement cost, and the salvage value of the equipment at the end of its working life. The algorithm utilized by the software to assess system performance and to validate the tech-economic performance is presented in
Figure 9.
The primary goal of this research is to design a hybrid microgrid system capable of producing electrical energy while using the least amount of COE, which is the per unit cost of generating electrical energy. The microgrid infrastructure capable of providing optimum values of these economic parameters is considered the optimal system design for supplying the load demand. The COE can be calculated by Equation (3), where
represents the annual energy generation cost,
reflects the electrical energy provided to the load connected directly to the microgrid, and
represents any energy sold to the grid [
38,
40].
The net present cost (NPC) is another important economic factor in this investigation since it represents the total expense of installing and operating the entire system throughout its entire lifespan. For the current microgrid study, these costs include all the costs, such as PV panels, wind turbines, converters, batteries, penalty costs, and the costs of grid integration. Therefore, Equation (4) may be used to compute the NPC [
41,
42,
43].
CRF stands for capital recovery factor: I is the interest rate and “N” is the number of years. Economic concerns include the renewable fraction (RF) and operational costs. The renewable penetration in the total system and the amount of power generated from renewable energy resources are represented by the RF, and the operational cost is the cost that happens yearly due to the operation and maintenance of the system.
The operating cost is another important economic criterion considered in this research for assessing the optimal system configuration of the microgrid. The operating cost is the annualized value of all the costs involved in the continuous operation of the system. This can include the diesel costs and the costs of lubricating oil for the generators, as well as any other costs related to the operation of the energy resources and the equipment connected to the microgrid structure. The operating cost can be determined using Equation (5). Here,
represents the total annualized costs involved in the operation of the equipment installed in the microgrid, while
is the total capital cost per year.
The annual replacement cost (ARC) is the cost of replacing a unit during the entire lifetime of the project. Mathematically, the ARC is defined in Equation (6).
where C
rep is the replacement cost of the unit and SFF is the sinking fund factor. The SFF, defined as the ratio calculating the future value of a series equal to the annual cost, is given by:
Regarding the annual operating and maintenance costs: there are several models for estimating the AOM system. It is assumed to be a function of both the inflation rate f and the lifetime of the project. In this case, it can be defined as
7. Existing Power System
The power-generating infrastructure that is already installed on the university premises is highlighted in
Figure 10. It can be seen that the existing system comprises a grid-connected diesel generating system. In their current form, both of these energy resources utilize conventional fossil fuel reserves for generating electricity. The power system under this configuration is highly hazardous to the environment and is causing considerable damage to local as well as global environmental health. The existing system is connected to the grid with a diesel generator as a backup power supply unit for power shortages or any other power shutdown conditions.
The existing power system utilizes grid energy at the price of 0.1 USD/kWh, whereas the diesel price is around USD 1 per liter, comprising the cost involved in its transportation, storage, and handling. A 2000 kW generator is responsible for taking the entire load during any power breakdowns, whereas the grid supply is utilized to compensate for the entire load demand during normal operation.
The existing system was analyzed with respect to the economic parameters considered in this research work, and the results are presented in
Table 1. It can be seen that the COE in this system configuration is around 0.115 USD/kWh, while the NPC and operating costs are also much higher. The capital cost is lower in this case as there are no additional infrastructure and equipment connected. The renewable fraction, which is the representation of renewable energy resources in the total power generation, is zero as there are no renewable energy resources attached.
Table 2 represents the total energy bought and sold to the grid. The annual energy purchased from the grid is around 7,957,534 kWh, while there is no energy sold back to the grid. The existing system structure has a peak load of around 2000 kW, and it requires around USD 795,753.35 for its proper operation.
The annual energy generation from each energy source under the existing system structure is presented in
Figure 11. It can be seen that over the year, most of the energy is provided by the grid, and the diesel generator works only for those periods when the grid power is less than the required power demand.
Figure 12 represents the total cash flow over the complete lifetime of the project. It can be seen that the highest costs are involved in the operation of the existing power system, which involves the costs of operating the grid as well as the diesel generator. These figures refer to 25 years of the system’s operation. Due to the rate of inflation, the replacement cost is very high compared to the capital cost. This is followed by the fuel cost and the operating cost in this order.
The total operating hours and other relevant details regarding the operation of the diesel generator are presented in
Table 3. It can be observed that the total energy generated by the diesel generator is around 336,726 kWh at a cost of USD 1.29 M, which reflects that in its current configuration, the system is highly inefficient and costly.
The greenhouse gas (GHG) emissions generated by the current system configuration are presented in
Table 4. It can be easily seen that the existing system is very harmful to the environment as it generates a significant amount of GHG emissions. It can be concluded from these assessments that this system configuration is highly inefficient, unreliable, costly, and has the worst effects on the environment.
11. Sensitivity Analysis
The optimal system configuration, which was selected through a rigorous procedure, was subjected to a sensitivity analysis to validate the system performance with varying different system parameters. The optimal system performance as per the sensitivity analysis will finalize that the selected system configuration is not only economically and environmentally viable but is reliable as well [
42,
43]. In this research work, four different sensitivity variables, the grid power price, minimum renewable fraction, carbon emission penalty, and battery backup size, were selected as system constraints for analyzing the selected system’s reliability.
Grid power prices increase each day as fossil fuel prices rise exponentially. Most of the grid power in Saudi Arabia is generated through oil and other fossil fuels. This shows that the grid prices are expected to increase with time. The grid power prices were selected to be 0.1, 0.2, and 0.3 USD/kWh, and the sensitivity results are presented in
Table 9. It can be observed that as the grid power prices increase, the optimal system tends to generate more power from renewable energy resources, and the renewable fraction increases. The COE, NPC, capital, and operating cost also increase because of the utilization of renewable energy resources, which are costlier to operate when compared to the conventional grid structure.
The second sensitivity variable considered in this research work was the minimum renewable fraction. The renewable fraction indicates how much energy is being generated from renewable energy resources. Here, the minimum renewable fraction variables considered were 82.8, 85, and 90%. The results of this sensitivity analysis can be observed in
Table 10, which indicates that as the renewable fraction increases, the capital cost increases while the COE and operating cost decrease. This indicates that the performance of the proposed system configuration is enhanced, as the renewable penetrations are increased.
The third sensitivity parameter considered in this study was the carbon emissions penalty. The carbon emissions penalty refers to a scenario in which the energy generation company is charged some penalty for the generation of carbon emissions to reduce the carbon footprint. This penalty is already being considered in different countries to compel energy-producing sectors to move toward renewable energy resources. The emissions penalties considered in this work were 2, 5, and 10 USD/ton, and the results are presented in
Figure 14. It can be seen that as the emission penalty increases, the renewable fraction increases, and the carbon emissions generated during the process decrease, reflecting that the proposed system is moving toward the use of renewable energy resources. The increase in the renewable fraction is nominal because of the limited space for renewable energy resources to be installed on the university premises.
The fourth sensitivity variable considered in this research was the battery backup, which was considered to be either small, medium, or large. The results of this analysis are presented in
Table 11. It can be observed that the medium-size backup with a size of 1000 kWh is the most optimal backup configuration and can provide the system with the required backup energy by utilizing lesser COE, NPC, and operating costs.
From the above sensitivity analyses, it can be determined that the proposed PV-WIND-GRID-ESS system configuration is the most optimal system configuration to be selected for the hybrid microgrid design. The economic and emissions comparison indicates that this system configuration is cost-effective, efficient, and environmentally friendly, and the sensitivity analysis proved the reliability of the optimal system configuration.