Assessing the Viability of AC to DC Microgrid Conversion: A Comprehensive Analysis of Technical and Economic Factors

In the face of global warming and the acceleration of climate changes, urgent and decisive measures must be taken to mitigate these phenomena. This study addresses this urgent need by exploring the transition from traditional AC distribution systems to more efficient DC and hybrid AC/DC systems, recognizing the utmost importance of both technical developments and economic considerations. Through a thorough overview of existing literature and empirical knowledge gathered from the nanogrid of FOSS Research Centre for Sustainable Energy of University of Cyprus, this research clarifies the inherent advantages of DC and AC/DC hybrid systems. In addition, it presents a detailed case study for the comprehensive assessment of the feasibility and effectiveness of these systems. The preliminary economic analysis carried out in this study demonstrates the cost-effectiveness and performance improvements offered by hybrid AC/DC microgrids compared to conventional AC configurations. According to the findings of this work it is obvious that the ROI increases with the increase of DC loads over AC loads until the case where DC loads reach the 75% of the total load (ROI=13.9%). However, even in the case of Full DC microgrid, the ROI is higher by 1% compared to the case of Full AC microgrid thus significantly reducing the payback period. These findings not only underline the urgency of the transition to more efficient and sustainable energy distribution systems, but also provide valuable information for policymakers, industry stakeholders and researchers. By embracing these innovative technologies, a more resilient and environmentally responsive energy infrastructure can be promoted that is in line with the demands of a rapidly changing global climate.