Evaluation and optimal scaling of distributed generation systems in a smart city

Distributed generation (DG) represents an important resource to address relevant energy issues, such as reliability and sustainability, in the current and future smart cities. It is expected that distributed generation will gain considerable presence in the following years; however, the selection and sizing of the generation and storage systems is commonly done without an adequate level of detail. This simplified or approximated approach usually results in a suboptimal technology mix with an inadequate type of system and/or scale, which could compromise the economic feasibility of the DG project. To tackle this problem, stakeholders should consider many factors, including geographical characteristics (sun, wind …), energy costs, local regulation, and energetic demand patterns, apart from analysing different technologies. Considering as an example location the city of Madrid, Spain, this paper proposes a linear programming model to evaluate the most common distributed generation technologies, with and without storage systems and under different electricity pricing scenarios. As a result, not only the optimal sizing, but also the optimal operation scheduling of the aforementioned systems are found. Then, an economic feasibility analysis is developed, comparing the different technologies and defining the best option for a given scenario. Furthermore, this study helps to find important milestones, such as battery prices, that could make distributed generation more attractive.