An Integrated Techno-Economic Framework for Optimal Microgrid Design: An Australian Case Study

Abstract

Reliable and affordable electricity supply remains a challenge for remote and regional communities, motivating the deployment of renewable-based microgrids supported by flexible storage and advanced planning methods. This paper proposes an integrated techno-economic framework for optimal microgrid design and robustness assessment, and applies it to a 1000-household residential community in Rockhampton, Queensland (Australia). The framework links time-series simulation, dispatch-based operation, and lifecycle costing to evaluate hybrid configurations comprising photovoltaic and wind generation, battery storage, diesel backup, grid exchange, and an optional hydrogen subsystem (electrolyzer--hydrogen storage--fuel cell). Key indicators include net present cost (NPC), cost of energy (COE), renewable penetration, energy purchased/sold, and emissions-related outcomes. To avoid conclusions that depend on a single set of assumptions, the study performs systematic sensitivity analysis across financial, technical and policy drivers: discount rate, technology capital costs, fuel price, load uncertainty, renewable resource variability, carbon pricing/emissions cost, and grid outage duration, supplemented by a no-hydrogen attribution case. The results demonstrate that several sensitivity dimensions induce nonlinear shifts in the optimal design, including breakpoints where capital-intensive renewable--storage expansion becomes economically preferable. The proposed framework enables transparent comparison of hydrogen-enabled and battery-centric solutions and provides planning guidance for resilient, low-emission community microgrids under Australian operating conditions.