Optimal Energy Management and Feasibility Study of a Hybrid Energy System for a Remote Area

This paper investigates impacts of possible energy generation policy and consumption behavior changes on optimal energy management and feasibility study of a hybrid energy system. The study was performed on a remote area near Esfarjan, a village located in Shahreza, Iran. In the main scenario, where the current energy generation policy is applied, the customers’ consumption behavior is studied applying an incentive based demand response algorithm. However, the sensitivity analysis scenario applies the near future condition that is gradually taking place by reducing the energy subsidies, whereas customers are assumed to be inflexible. Impacts of uncertainties related to gas and electricity price, environmental issues and inflation rates are evaluated in the latter scenario. Simulations have been done on six different system configurations for both the scenarios. Results highlight the significant role of long-term energy generation policies in analogy with customer’s short-term consumption behavior. It is also indicated that configurations involving renewable resources will become stronger rivals for configurations involving the external grid in the near future, which in turn results in more interest in investing on renewable resources.