Are urban microgrids economically feasible?

Urban microgrids with rooftop solar (RTS) PV and battery energy storage systems (BESS) can help power distribution companies (discoms) meet the accelerating electricity demand in cities. These may be a more convenient alternative to usual methods of procuring additional generation capacity and building new grid infrastructure. Last year, BSES Yamuna Power Limited (BYPL), in association with Panasonic India, piloted four urban microgrids in their service area. This work employs the VGRS framework to assess the impact of these systems on BYPL revenue. It also uses a discounted cash flow method to estimate the impact on consumer finances. The analysed microgrid consists of 7 kWp RTS PV system coupled with a 10 kWh/ 5 kW lithium-ion battery.