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The energy demand is growing daily at an accelerated pace due to the internationalization and development of civilization. Yet proper economic utilization of additional energy generated by the Islanded Hybrid Microgrid System (IHMS) that was not consumed by the load is a major global challenge. To resolve the above‐stated summons, this research focuses on a multi‐optimal combination of IHMS for the Penang Hill Resort located on Penang Island, Malaysia, with effective use of redundant energy. To avail this excess energy efficiently, an electrical heater along with a storage tank has been designed concerning diversion load having proper energy management. Furthermore, the system design has adopted the HOMER Pro software for profitable and practical analysis. Alongside, MATLAB Simulink had stabilized the whole system by representing the values of 2068 and 19,072 kW that have been determined as the approximated peak and average load per day for the resort. Moreover, the optimized IHMS is comprehended of Photovoltaic (PV) cells, Diesel Generator, Wind Turbine, Battery, and Converter. Adjacent to this, the optimized system ensued in having a Net Present Cost (NPC) of $21.66 million, Renewable Fraction (RF) of 27.8%, Cost of Energy (COE) of $0.165/kWh, CO 2  of 1,735,836 kg/year, and excess energy of 517.29MWh per annum. Since the diesel generator lead system was included in the scheme, a COE of $0.217/kWh, CO 2  of 5,124,879 kg/year, and NPC of $23.25 million were attained. The amount of excess energy is effectively utilized with an electrical heater as a diversion load.

environmental progress and sustainable energy

Design and implementation of an islanded hybrid microgrid system for a large resort center for  Penang Island  with the proper application of excess energy