www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 393 Copyright © 2016. Vandana Publications. All Rights Reserved. Volume-7, Issue-1, January-February 2017 International Journal of Engineering and Management Research Page Number: 393-404 Sizing and Analysis of Renewable Energy and Battery Systems in Residential Microgrids Harmeet Sandhu 1 , Mukesh Kumar 2 1 Mechanical Department, Maharishi Dayanand University, Rohtak (Haryana) INDIA 2 H.O.D (Mechanical), Delhi Institute of Technology Management & Research, Faridabad, Haryana, INDIA ABSTRACT Accelerated development of eco-friendly technologies such as renewable energy, smart grids, and electric transportation will shape the future of electric power generation and supply. Accordingly, the power consumption characteristics of modern power systems are designed to be more flexible, which impact the system sizing. However, integrating these considerations into the design stage can be complex. Under these terms, this paper presents a novel model based on mixed integer linear programming for the optimization of a hybrid renewable energy system with a battery energy storage system in residential microgrids in which the demand response of available controllable appliances is coherently considered in the proposed optimization problem with reduced calculation burdens. The model takes into account the intrinsic stochastic behavior of renewable energy and the uncertainty involving electric load prediction, and thus proper stochastic models are considered. This paper investigates the effect of load flexibility on the component sizing of the system for a residential microgrid in Okinawa. Also under consideration are different operation scenarios emulating technical limitations and several uncertainty levels. Keyword-- Design optimization, demand response, hybrid power systems, microgrids, performance analysis I. NOMENCLATURE BAq,B0&M,BRep Annualized acquisition, operating, and replacement costs of the battery ($/kWh). CP(t),Cs(t) Prices of purchasing and selling electricity DApp Task commitment duration of an applicance type m (h). Inqu,Inv0&M, Annualized acquisition, operating, and replacement costs of the and InvRP Inverter ($/kW). t ($/kWh). Indices of appliance types. Factors related to the commitment of appliance type m during H. N App Number of appliances of type NB Installed battery capacity (kWh). NInv Installed capacity of the bi-mrectional inverter (kW). NPV Installed capacity of the PV array(kW) NWT Installed capacity of wind turbines(kW). PVAq,PVO&M Annualized acquisition and operating costs of PV ($/kW). Papp Average power consumed by an online appliance m (kW). PB Battery maximum charge/discharge power per kWh (kW). PCh(t),PDch(t) Battery charged and discharged power at t (kW). PG Maximum grid power that can be purchased or sold (kW). PPG Hourly grid purchased power (kW). PL(t) Total power consumption at t (kW). PNCL(t) Non-controllable load power at t(kW). PacPG(t) Grid-purchased power, dispatched to supply the load at t (kW). PdcphG(t) Grid purchased power, dispatched to the DC side for charging the