Cost Optimization of Hybrid Microgrid for Rural Electrification along Western Alignment of China-Pakistan Economic Corridor (CPEC) in Pakistan

Energy poverty in the rural areas of third world countries is an important factor that stifles human development. Rural electrification is considered a viable solution to improve the socio-economic status and living standard for communities suffering from intermittent grid electricity. Designing of the microgrid architectures with optimal planning is essential for providing electricity access. Pakistan is suffering from an extreme shortage of electricity, resulting in severe load shedding. China-Pakistan Economic Corridor (CPEC) involves several projects under development for the economic stability of Pakistan. In this paper, a hybrid microgrid system is proposed for three different locations across the western alignment of CPEC. The proposed microgrid system is modeled and simulated in Hybrid Optimization of Multiple Energy Resources (HOMER) [1] for analyzing its feasibility. A combined dispatch strategy is used for optimization analysis of the designed microgrid system. The renewable generation resource data is obtained from the National Aeronautics and Space Administration (NASA) Surface Meteorology and Solar Energy [2], National Renewable Energy Laboratories (NREL) [3] and the National Solar Radiation Database [4], for temperature, wind, and solar respectively. The results of sensitivity analysis, techno-economic analysis, and cost optimization based on least cost of energy (LCOE) and net present cost (NPC) are used for the verification of the feasibility of the proposed microgrid system.