An assessment of the technical and economic feasibility of a renewable microgrid on a New Zealand dairy farm : A dissertation submitted in partial fulfilment of the requirements for the Degree of Master of Planning at Lincoln University

Abstract

One-hundred per cent renewable electricity generation is an ambitious target that will require significant investment and innovation to increase the nation’s renewable capacity. This study investigates the potential for renewable microgrid electricity systems to increase the proportion of renewable electricity, and whether microgrids are relatively less expensive than a typical grid connection for New Zealand dairy farms facing rising grid electricity prices. The Lincoln University Research Dairy Farm was used as a case study to model an optimal microgrid. Several microgrid scenarios were modelled, and the system configurations and economic analyses were examined. The results indicated that microgrids are not yet cheaper than a typical grid connection. Additionally, a sensitivity analysis established that increases in sell back rates and wind turbine heights may have a more significant impact on improving the economic viability of a microgrid in comparison to rising electricity prices. Despite microgrids lacking the economic feasibility required to encourage widespread investment, renewable microgrids increase the proportion of renewable electricity generation, which has environmental benefits. Furthermore, microgrids also ease pressure on the national grid and may reduce or delay the need for costly grid upgrades and maintenance in the future.