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Methods for optimization of islanded microgrid systems are usually based on hourly models where each subcomponent is described by a simple algebraic model. There are many studies on this topic, which are usually based on the minimization of total lifetime cost by determining the number of required batteries, wind turbines, PV panels, the positioning of PV panels, etc. In this paper, we further improve the modeling of the microgrid system optimization process by developing a simplified algebraic model that uses one parameter to simulate accelerated battery degradation with respect to depth of discharge. The model consists of simply linearly increasing the degradation of the battery when the state of charge (SOC) becomes lower than a fixed value, and the only model constant is the factor of degradation  f . The objective of the paper is to examine the effect of the degree of degradation on the obtained optimal microgrid system parameters. The analysis was performed for several different systems, and the results show that optimal parameters of the system and the overall system cost strongly depend on battery degradation characteristics. The overall system cost can be reduced by 1–6% for lower battery degradation rates and up to 20% for high degradation factor cases. Increasing the degradation factor also has an influence on the ratio of wind turbines to PV panels, and the optimal size of the battery system.

One-parameter battery degradation model for optimization of islanded microgrid system