**Techno-Economic Optimization of Grid-Connected Photovoltaic (PV) and Battery Systems Based on Maximum Demand Reduction (MDRed) Modelling in Malaysia**

#### **Gopinath Subramani 1, Vigna K. Ramachandaramurthy 2,\*, P. Sanjeevikumar 3, Jens Bo Holm-Nielsen 3, Frede Blaabjerg 4, Leonowicz Zbigniew 5 and Pawel Kostyla 5**


Received: 11 July 2019; Accepted: 9 September 2019; Published: 13 September 2019

**Abstract:** Under the present electricity tari ff structure in Malaysia, electricity billing on a monthly basis for commercial and industrial consumers includes the net consumption charges together with maximum demand (MD) charges. The use of batteries in combination with photovoltaic (PV) systems is projected to become a viable solution for energy management, in terms of peak load shaving. Based on the latest studies, maximum demand (MD) reduction can be accomplished via a solar PV-battery system based on a few measures such as load pattern, techno-economic traits, and electricity scheme. Based on these measures, the Maximum Demand Reduction (MDRed) Model is developed as an optimization tool for the solar PV-battery system. This paper shows that energy savings on net consumption and maximum demand can be maximized via optimal sizing of the solar PV-battery system using the MATLAB genetic algorithm (GA) tool. GA optimization results revealed that the optimal sizing of solar PV-battery system gives monthly energy savings of up to 20% of net consumption via solar PV self-consumption, 3% of maximum demand (MD) via MD shaving and 2% of surplus power supplied to grid via net energy metering (NEM) in regards to Malaysian electricity tari ff scheme and cost of the overall system.

**Keywords:** maximum demand (MD); solar PV; battery energy storage system (BESS); net energy metering (NEM); maximum demand reduction (MDRed) model
