Carbon Footprint Reduction Potential of On-Grid Renewable Microgrids

Abstract

Using renewable energy-based microgrids in on-grid systems has great potential in reducing carbon emissions and increasing energy efficiency. This study analyzes the impact of renewable energy integration on microgrids using HOMER Pro simulation. The simulation results show that with a combination of 500 kW of solar power, 300 kW of wind turbines, and 1 MWh of battery storage systems, microgrids can replace up to 60% of electricity needs that previously depended on fossil fuels. The reduction in carbon emissions reaches 40%, from 1,200 tons per year in conventional systems to around 720 tons per year in microgrid systems. In addition to environmental benefits, the implementation of microgrids also provides economic benefits by reducing fuel consumption by up to 500,000 litres per year, which has an impact on reducing operational costs by up to 30%. This system also increases energy efficiency by up to 85%, especially with energy storage technology that optimises renewable electricity utilization. The results show that the higher the penetration of renewable energy in the microgrid, the greater the operational cost efficiency achieved, with fuel savings reaching 500,000 litres per year and operational cost reductions of up to 20% in scenarios with renewable energy penetration of 60–70%. Policy support such as feed-in tariffs (FiT) and tax incentives are essential to accelerate the adoption of renewable energy-based microgrids. With continued development, microgrids can be a strategic solution in transitioning to a more environmentally friendly, efficient, and sustainable energy system.