t
1s IEEE International Conference on Power Electronics, Intelligent Control and Energy Systems (ICPEICES-2016)
Sizing of Microgrids for Indian
Systems using HOMER
Prema V.I and Vma Rao K.2
12
, R.V. College of Engineering, Bangalore, India
Abstract-The energy needs of mankind are rising at an
ex ponential level and it necessitates tapping
unconventional sources of energy more efficiently.
country like India where around 300 million peop le lack
electricity, the concept of micro grid plays a significant role.
Hybrid systems with wind and solar energy are ideal for
village electrification. The maj or challenge in designing
hybrid system is the optimization of the various sources
involved in hybrid systems. This paper gives a perfect model
of a micro grid with optimized size of wind, solar, diesel
generator and battery using HOMER software. A detailed
cost analysis is carried out and the designed system is
compared with only DG system in terms of emission, fuel
consumption and cost of the system over the next 15 years.
Keywords-HOMER; Microgrid; Hybrid Systems; Solar
Energy; Wind Energy
I. INTRODUCTION
Investments in renewable energy has been increasing
in the last few years. China led as the world's largest
investor in renewables, with the U.S. coming in second
place. The five top countries breaking records and paving
way for achieving 100% clean energy are:
l. Denmark which has long been a pioneer in wind
power, has a vision of lOO percent renewable country
by 2050. Last year, onshore wind was also declared
the cheapest form of energy in the country.
2. UK now generates enough of wind energy to supply
the needs of more than 6.7 million households.
3. Germany has around 26% of clean power generation,
with an eight fold increase in 25 years.
4. Scotland has wind power to supply more than 100%
of its households, with other countries such as
Aberdeen, Edinburgh, Glasgow and Inverness have
enough sunshine to provide electricity to 100% of its
households.
5. Ireland with its heavy winds saw a remarkable
increase in wind power production.
India too has seen tremendous growth in wind and
solar energy production with a wind power capacity of
24.76 GW and solar power production of 4.68 GW.
Hybrid plants are typically suited for tropical countries
which enjoy both good sunshine and wind, for a major
part of the year. Therefore, there is a strong need to
strengthen research in this area. Considering solar and
wind power as the main sources of renewable energy, the
major challenge is in planning of hybrid power plants
which have a mix of solar and wind power generation, in
978-1-4673-8587-9/16/$31.00 ©2016 IEEE
the same site or location. Here the complementary nature
of of wind and solar power can play a critical role in sizing
In a of hybrid plants. It has been shown that a hybrid mix can
maximize production when compared to only solar or
wind, by having the generating facilities in the same site
or in the same location [2-5]. The challenge in optimal
sizing of hybrid systems is to reduce the variability of the
total power production, at the same time considering the
cost of the mix. Many strategies have been proposed based
on different objectives such as optimizing generation
capacity and storage, minimization of total cost of system
or cost of energy, optimization of component sizing, etc.
[4-10].
In [4], an optimal power supply system is selected
using HOMER software. The possibility of installing
stand alone and grid tied renewable energy sources for a
diary factory in Tehran, Iran are investigated. The
sensitivity analysis of the two models are also conducted.
In [5] an economically optimal sizing of a microgrid is
modelled for a building. A case study is carried out with
practical data of a building. A conventional system is
compared with a system with PV, wind turbine, batter and
a grid connection. It was observed that the net cost and
CO2 emissions are reduced for the microgrid.
In [6], a simple algorithm is developed for the optimal
sizing of a microgrid. The algorithm takes care of the state
of charge of the battery to be periodically invariant. A case
study onthe real data of the Zhoushan islands is
performed. [7] Proposes a Particle Swam Optimization
(PSO) algorithm to minimize the capital, operations &
maintenance and replacement costs of a distributed energy
source. The reliability effect on total microgrid cost is also
evaluated.
II. INTRODUCTION TO HOMER
HOMER is a free software application developed by
the National Renewable Energy Laboratory in the United
States. This software application is used to design and
evaluate technically and fmancially the options for off­
grid and on-grid power systems. It allows consideration of
a large number of technology options to account for
energy resource availability and other variables. HOMER
calculates the different permutations of possible designs
based on the inputs provided and simulate the power
system [1].
[1)
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1s IEEE International Conference on Power Electronics, Intelligent Control and Energy Systems (ICPEICES-2016)

HOMER performs three principal tasks: simulation, wind turbine nacelle will need replacement after 15 years,
optimization, and sensitivity analysis [2]. In the simulation but the tower and foundation will last for the life of the
process, HOMER models the performance of a particular project. In that case, the replacement cost would be
micro power system configuration each hour of the year to considerably less than the initial capital cost.
determine its technical feasibility and life cycle cost. In Following were the details considered in HOMER
the optimization process, HOMER simulates many • PV Panel: Flat Plate PV panel was chosen. The cost
different system configurations in search of the one that chosen for this panel was Rs. 90,000 for a lkW
satisfies the technical constraints at the lowest life-cycle panel. The Operations and Maintenance cost was Rs.
cost. In the sensitivity analysis process, HOMER performs 1000 per year. The panel comes with a warranty of
multiple optimizations under a range of input assumptions 25 years in case of no physical damages.
to gauge the effects of uncertainty or changes in the model • Wind Turbine: A Generic lkW Wind turbine was
inputs. Optimization determines the optimal value of the
chosen and the number of turbines was increased in
variables over which the system designer has control such
steps for the purpose of sizing. The cost of a lkW
as the mix of components that make up the system and the turbine was taken to be Rs. 2,40,000 and the
size or quantity of each. Sensitivity analysis helps assess
operations and maintenance cost was taken to be Rs.
the effects of uncertainty or changes in the variables over
3000 per year. The turbines have a warranty of 10-15
which the designer has no control, such as the average
years.
wind speed or the future fuel price [3].
• Battery: Two types of batteries that were compared
HOMER calculates the following four costs for every
were Lithium Ion and Lead Acid type. The cost for
simulation result:
one 800 Ah string of lead acid battery was Rs.
• COE(Cost of Energy)
1 00' 000 and that of Lithium Ion was Rs. 1,50,000.
• NPC(Net Present Cost)
The Operations and Maintenance cost was taken to
• O&M(Operations and Maintenance Cost)
be Rs.1O per year.
• Initial Capital
• Diesel Generator: A variable speed diesel generator
HOMER uses the total net present cost (NPC) to was chosen for this setup and the price was taken to
represent the life-cycle cost of a system[2].The total NPC
be Rs. 3,00,000, replacement cost was taken to be
condenses all the costs and revenues that occur within the
1,50,000 and the O&M was Rs.lOlhour.
project lifetime into one lump sum in today's rupees, with
• Converter: A converter was required for DC to AC
future cash flows discounted back to the present using the
conversion. Its cost was assumed to be included in
discount rate. The user specifies the discount rate and the
the PV panel and Wind Turbine costs.
project lifetime. The NPC includes the costs of initial
• Solar Data: From the data available from Bagalkot
construction, component replacements, maintenance, fuel,
monthly averages were taken for solar irradiation
and miscellaneous costs such as penalties resulting from
(W/m2) and then converted to solar insolation (kWh/
pollutant emissions. Revenues include income from
m2/day). HOMER automatically calculated the
selling power to the grid, plus any salvage value that
Clearness Index on the basis of geographical location
occurs at the end of the project lifetime. With the NPC,
specified.
costs are positive and revenues are negative. This is the
• Wind Data: The monthly averages were taken for
opposite of the net present value. As a result, the net
wind speed. The altitude above sea level was taken
present cost is different from net present value only in
as 533m for Bagalkot and the Anemometer height
sign.
that is the height at which the wind is measured is
III. SYSTEM UNDER CONSIDERATION taken to be 80m.
• Load Data: The Load data was taken as it is for
A microgrid setup currently being run in Bangalore,
HOMER analysis. The average consumption was
has been considered for the current study. A detailed
45.09kWh per day and the peak load was 8.31kW
information on the cost of each component involved was
obtained. For each component of the system, the user IV. SIZING MATRIX
specifies the initial capital cost, which occurs in year zero,
A number of simulations with different combinations
the replacement cost, which occurs each time the
of different sizes and/or different specifications of the
component needs replacement at the end of its lifetime,
components were run to find the best possible setup
and the O&M (Operations and Management) cost, which
parameters for our microgrid components. Here in the
occurs each year of the project lifetime. The user specifies
Table 1 a sizing matrix is shown. Three parameters are
the lifetime of most components in years, but HOMER
considered while selecting a suitable model, CoE (Cost of
calculates the lifetime of the battery and generators, from
Energy), Net Present Cost (NPC) and the fuel
standard life cycles of these equipment. A component's
consumption. Here only four specifications of wind and
replacement cost may differ from its initial capital cost for
PV panel have been shown. Though many other sizes
several reasons. For example, a user might assume that a

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were considered but they did not render desired result as A. Comparison with System with Only DG
the COE (Cost of Energy per kWh) increased with
To extend the analysis further it was decided to
increase in the PV panel capacity. For wind it can be seen
compare the hybrid microgrid model with that of the same
that the COE doesn't exactly decrease with increase in
Wind turbine capacity. Still a larger size was considered
microgrid being supplied by only a diesel genera o� �et. �
Since, the major objective had always been to mmUTIlze
because of the decrease in the fuel consumption per year.
cost and emissions both obviously the DG system gave the
So in short it is a fair trade-off between the cost and fuel
worst case scenario. Now here the comparison would be
consumption and as fuel consumption adds to the
made on broadly four criteria Costs, Cash flow, Emissions
emissions its always better to use lesser fuel. The
and Fuel Consumption and Cost Comparison for the next 15
generator was taken to be of lOkW capacity as it is usually
years. The two systems under comparison are as shown in
advisable for the DG to be of capacity which is 120% of
Fig. 1. It can be seen from the Table 3 that Cost of Energy
the peak load (8.3kW). Moreover, 3 strings of 800Ah
per kWh is almost 3 times more for DG system as
Lead Acid battery with 6 cells of 2V nominal voltage in
compared to the Hybrid system. It is known know that
each string were taken. An optimal size of the battery was
generally for renewable sources the initial capital is m�re
taken to minimize the cost as batteries usually have a
and the O&M charges are less and its exactly the opposIte
lifespan of only 3-4 years and with increase in size the
for non-renewable sources. This can be clearly seen here the
storage cost increases.
initial capital of hybrid system is almost five times that of
TABLE I: SIZING MATRIX
DG system but the O&M cost of DG system in much more.
OkWWind lkWPV 2kWPV 3kWPV 4kWPV
AC
Turbine Panel Panel Panel Panel
COE- COE- COE- COE- 1 0 kW OG
Rs.33.62 Rs.30.13 Rs.26.92 Rs.25.02
NPC-71.53 NPC-64.12 NPC-57.28 NPC-53.23
lacs lacs lacs lacs
Fuel- 86361 Fuel- 75361 Fuel- 64241 Fuel- 57541
lkWWind COE- COE- COE- COE-
Turbine Rs.34.42 Rs.3I.44 Rs.27.81 Rs.26.54
NPC-73.21 NPC-66.90 NPC-59.17 NPC-56.47
lacs lacs lacs lacs AC DC
Fuel- 84891 Fuel- 75231 Fuel- 63021 Fuel- 58031 10kW DG Elecl:ric Load #1
2kWWind COE- COE- COE- COE-
Turbine Rs.35.15 Rs.32.54 Rs.28.93 Rs.27.39
NPC-74.79 NPC-69.23 NPC-61.56 NPC-58.29
lacs lacs lacs a
l cs
U , tw "",�
Fuel- 83321 Fuel- 74611 Fuel- 62491 Fue-l 56771
CorlVerter SOLAR 4kW
3kWWind COE- COE- COE- COE-
Turbine Rs.36.20 Rs.33.59 Rs.30.03 Rs.28.53
NPC-77.03 NPC-71.47 NPC-63.91 NPC-60.70
lacs lacs lacs lacs
Fuel- 82581 Fuel- 73061 Fuel- 61911 Fuel- 56281 3xllOO A h Lead Acid

From the sizing matrix, it can be observed that the

final system comprises of the following components. A
.
Flat Plate PV panel of 4kW capacity was taken. The Wmd
turbine is of 2kW capacity and DG of lOkW. Three strings Fig. I: The Two Systems under Consideration
of 800Ah, 12V nominal voltage Lead Acid Battery are
TABLE 3: COST COMPARISON FOR ONLY DG AND HYBRID SYSTEM
taken. The converter has a capacity of lOkW.
Cost DC System Hybrid System
V. COST ANALYSIS COE(Cost Of Energy) Rs. 79.247/kWh Rs. 27.397/kWh
NPC(Net Project Cost) Rs.I,68,60,790 Rs.58,29,055
The cost of the optimal system has been calculated Operations and Management Rs. 12,81,050 Rs. 3,40,441
and is listed in Table 2 Initial Cost Rs. 3,00,000 Rs. 14,28,000
TABLE 2: COST OF THE OPTIMAL SYSTEM Renewable Fraction 0% 29.2%
Fuel 20,540I�ear 5677I�ear
Costs Vau
l e
Cost Of Energy Cost per kWh or per unit of RS. 27.397 B. Effect ofIncrease in Diesel Price
energy
Net Present Cost Total Life Cycle Cost for the Rs. 58,29,055 Based on the Diesel price hike trends over the last 13
full lifetime of the project
years (as shown in Fig. 2), the prices were projected for
Operations and Cost for operations and Rs. 3,40,441
Maintenance maintenance for one year the next 15years. On the basis of these prices, the Cost of
Initial Capital Initial capital required to Rs. 14,28,000 Energy per kWh was estimated and that is represented as
cover the setup costs seen in the graph in Fig. 3.

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D. Cost Comparison/or COE over Next 15 Years

Rs 60-
- l>iesel Prices
Rs 55 The diesel price projections are estimated for the next
tt

n tt n
Rs 50 15 years to study the effect of increase in diesel prices.
Rs 45
These estimates are used to compare the performances of
Rs 40
the two systems over the years. As seen in the Fig. 6 the
Rs 35
slope is steeper for Only DG system as the fuel

II I
Rs 30 -

J consumption is more. Hence, for long term usages the

tt H
Rs 25

Rs 20
Hybrid system proves to be more useful and cost efficient.
Rs 15
I I Cost Analysis for next 15 years

444.21
It'
�
360.85
�
,
---------- ---
277.48 )
I{ "'-

i'
Fig. 2: Diesel Price Trend in the Last 13 Years
• COE(Hybrid)
Cost Analysis for next 15 years
'Ii&!
U""
194.12
I
�p,...�
-- ---------
t28.27

�( ....�
� 110.78

'"-,..,r'" ��....1"""
108.1

"- 10>4��....
87.92 II 27.4
2015 2017 2019 2021 2023 2025 2027 2029
2016 2018 2020 2022 2024 2026 2028 2030
�C2
UE Iv.- • COE(Hybrid) Year

)1
67.75
, Fig. 6: Cost Comparison for Only DG and Hybrid System
over the Next 15 Years
47.57

....� VI. CONCLUSION

27.4 � ...
2015 2017 2019 2021 2023 2025 2027 2029 A hybrid microgrid for Indian villages is modelled
2016 2018 2020 2022 2024 2026 2028 2030
using HOMER. From the sizing calculations, the selected
Year
microgrid has the following specifications. A Flat Plate
Fig. 3: The Projected COE for the Next 15 Years PV panel of 4kW capacity, A Wind turbine is of 2kW
capacity, DG of lOkW, three strings of 800Ah, 12V
C. Emissions and Fuel Consumption nominal voltage Lead Acid Battery and a lOkW converter.
Emissions and Fuel Consumption are more or less The system is compared with a system with only DG. It

directly related. More fuel consumption would imply can be observed from the cost analysis, fuel consumption
rate and CO2 emission rate that hybrid system is far
higher emissions. Emissions in any form are not desired as
superior to conventional systems. Here grid cost is not
besides harming the environment they also result in
taken into account as this study is dedicated for places in
penalties due to excessive emissions. The emissions
India where there is no availability of grid. It can be
comparison and fuel consumption for the two systems are
observed from Fig. 6 that in the next 15 years, the per-unit
shown in Figs. 4 and 5 respectively.
cost DG may increase up to 444 rupees whereas hybrid
QIJ.ntity Value Units Quantity Value U n i ts
system would cost only one fourth of that.
Carbon Dioxide 14,949.00 kgfyr Carbon Dioxide >4,088.00 kg/yr
Catbon Monoxidt 36.90 kglyt Carbon Monoxid� 133.51 kg/yr
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