Microgrid as a Cost-Effective Alternative for Rural Network Underground Cabling for Adequate Reliability

Microgrids can be used for securing power supply during network outages. Underground cabling of distribution networks is another effective, but conventional and expensive alternative to enhance reliability of power supply. This paper presents firstly an analysis method for the determination of microgrid power supply adequacy during islanded operation, and secondly, a comparison method for overall cost calculation of microgrids vs. underground cabling. The microgrid power adequacy during a rather long network outage is required in order to indicate high level of reliability of supply. The overall cost calculations consider the economic benefits and costs incurred combined for both the distribution network company and the consumer. Whereas the microgrid setup determines the islanded operation power adequacy and thus the reliability of supply, the economic feasibility results from the normal operations and services. The methods are illustrated by two typical, and even critical, case studies in rural distribution networks: an electric-heated detached house and a dairy farm. These case studies show that even in case of a single consumer, a microgrid option could be more economical than network renovation by underground cabling of a branch in order to increase reliability.