Sensitivity assessment of microgrid investment options to guarantee reliability of power supply in rural networks as an alternative to underground cabling

Microgrids could be utilized to improve the distribution network resiliency against weather-related network outages and increase the security of power supply of rural electricity consumers. Whereas underground cabling is expensive for the distribution system operator (DSO), an alternative microgrid investment could benefit the DSO and consumer, provided the necessary changes were made in the network regulation. A rural detached house customer microgrid is analysed in comparison to underground cabling, considering the uncertainties in the calculation parameters through a sensitivity analysis. Adequacy of the microgrid power supply during unexpected network outage for a reasonably long duration is assessed, as well as the economics of the feasible microgrid setup consisting of variable generation, controllable generation, and electric storage. The total costs and benefits for the DSO and consumer/prosumer are considered. A microgrid would likely be a more cost-efficient option overall, but not as-is for the consumer. The battery energy storage system (BESS)-related cost-sharing strategies are suggested in this paper in order to assess possible break-even investment solutions for the related parties. The sensitivities of the microgrid and cabling investments were considered in particular. Cost-sharing strategies under network regulatory framework would need to be developed further in order for both the consumer and DSO to benefit from the solution as a whole.