The microgrid is a power distribution system that supplies power from distributed generation to end-users. Demonstration projects and R&D regarding microgrids are currently in development in several advanced countries. In South Korea, renewable energy-based microgrid demonstration projects are carried out mainly as island or university campus grids. These R&D efforts aim to popularize microgrid systems in South Korea while considering the limited land availability, which impedes the widespread distribution of photovoltaic systems and the microgrid market’s growth. This study presents a floating photovoltaic system configured as an island microgrid combined with a hybrid power system. The floating photovoltaic system is configured on an idle water body integrated with an existing pumped hydroelectric system. The integration of a current pumped hydroelectric system minimizes a battery energy storage requirement, which compensates for the renewable energy sources’ intermittent power output. We evaluate the optimal power flow of the setup using a reliability index to ensure a stable power supply within the standalone microgrid and maximize the supply power range according to the demand response.

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-In recent years, renewable energy sources have been mentioned as solution to environmental regulation and energy supply-demand. Energy storage systems are needed to mitigate the intermittent output characteristics of renewable energy sources and to operate micro grid efficiently using renewable energy generation systems. However, despite the necessity of energy storage system, this cannot secure the economical efficiency of the energy storage system by high initial cost. In this paper, a micro grid is constructed to supply electric power to industrial customers by using solar power generation system and energy storage system among renewable energy generation power sources and operated to improve energy independence. In the case study, we use photovoltaic system which is representative renewable energy generation system. Unlike conventional photovoltaic system, this system uses floating photovoltaic system with the advantage of having high output and no land area limitations. It is operated for the purpose of improving energy independence in the micro grid. In order to secure economical efficiency, the energy storage system operates a micro grid with a minimum capacity. Finally, this paper calculates the appropriate subsidy for the energy storage capacity.