Optimal distributed generation planning at a local level – A review of Serbian renewable energy development

With the Law on Energy and its acceptance by the Covenant of Mayors, local authorities in Serbia are obliged to prepare action plans for the development of distributed generation and energy efficiency measures aiming at reducing CO2 emissions. The development of distributed generation (wind, photovoltaic, hydro and combined heat and power plant) is an asset to the local authorities wishing to become energy independent microgrids that could relieve the national transmission grid in the way of reducing amount of electricity to be transported from centralized generation to the end-user. Using the simulation tool HOMER, an optimal configuration plan of the municipal microgrids for Serbia has been drawn, in order to obtain the lowest total net present costs during the planning period under various levels of CO2 reduction constraint. The increase of the end-user specific costs for energy has been quantified in a sensitivity analysis based on this constraint in the local authority microgrid.