Cost-Effective Design of Grid-tied Community Microgrid

Moslem Uddin; Huadong Mo; Daoyi Dong

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arXiv · 2503.07414

Cost-Effective Design of Grid-tied Community Microgrid

Moslem Uddin·Huadong Mo·Daoyi Dong

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Abstract

This study aims to develop a cost-effective microgrid (MG) design that optimally balances the economic feasibility, reliability, efficiency, and environmental impact in a grid-tied community MG. A multi-objective optimization framework is first employed to generate feasible MG configurations considering economic, reliability, efficiency, and environmental objectives. Subsequently, a preference-based deep reinforcement learning (DRL) framework is utilized to evaluate and select preferred configurations using a scalarized reward function. This combined approach enables systematic exploration of trade-offs among conflicting objectives and supports informed decision-making for community MG planning. Sensitivity analyses are conducted to evaluate the system performance under varying load demand and renewable energy fluctuations. Besides, an economic sensitivity assessment examines the impact of electricity prices and capital costs on the levelized cost of energy (LCOE). The proposed MG configuration achieves high reliability, satisfying 100% of the load, even under adverse weather conditions. The proposed framework attains an efficiency of 91.99\% while maintaining a carbon footprint of 302,747 kg/year, which is approximately 95\% lower than the annual emissions associated with a conventional grid-supplied energy system. The economic analysis indicates a net present cost of \$4.83M with a competitive LCOE of \$0.208/kWh. In addition, the operation cost is \$201,473 per year with a capital investment of \$1.42M, rendering it a financially viable alternative to conventional grid-dependent systems. This work can be valuable in identifying effective solutions for supplying reliable and cost-effective power to regional and remote areas.

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Moslem Uddin, Huadong Mo, Daoyi Dong. 2026-06-25. Cost-Effective Design of Grid-tied Community Microgrid. https://arxiv.org/abs/2503.07414

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