Techno-economic analysis of reactive power management in a solar PV microgrid: A case study of Sunyani to Becheam MV feeder, Ghana

Solar photovoltaic (PV) electricity offers a promising solution for the increasing demand for clean and sustainable energy, particularly in developing countries like Ghana. Power utility operators maintain power quality as their utmost priority per benchmarks established by regulators. Some researchers argue that increasing variable renewable sources in the grid compromises its stability, leading to poor power quality. This paper aims to evaluate the suitability of reactive power management (technical aspect) in a solar PV microgrid in meeting regulators' power quality benchmarks. It also presents the economics associated with reactive power management. The study uses Python optimisation algorithms to achieve the technical objective. The net present value (NPV), profitability index (PI) and discounted payback period (DPP) are the econometrics used to assess the economic viability of reactive power management in this study. The results show that optimising reactive power in microgrids reduces power losses, increasing the utility's energy sales. An annual energy savings of 1,985,600 MWh was made due to the reactive power optimisation, leading to significant economic returns for the microgrid. The NPV, PI and DPP calculated from the study were GHS 12,528,583,512, 10,404.3, and one year, respectively. Therefore, it suggests reactive power optimisation to microgrid and grid operators as a viable solution to meet regulators' benchmarks.