A Comprehensive Review of Hybrid Renewable Microgrids: Key Design Parameters, Optimization Techniques, and the Role of Demand Response in Enhancing System Flexibility

The paper investigates the design and operation of microgrid arrangements, with a focus on renewable power systems, system architectures, and storage solutions. The research evaluates stochastic and multi-objective optimization methods to show how demand response systems improve operational flexibility. The study evaluates 183 journal articles to select those that address microgrid design in conjunction with optimization models and demand response approaches. The articles are classified into three essential categories, which include microgrid design optimization methods and demand response integration. The review establishes that microgrid performance depends on three fundamental design parameters, which include energy generation systems, storage capabilities, and load demand control mechanisms. The review demonstrates that advanced optimization approaches, such as stochastic and multi-objective optimization methods, offer effective solutions for managing renewable energy variability. The paper demonstrates that demand response strategies are crucial for reducing costs and enhancing system flexibility. However, current published research falls short of establishing an integrated system that combines real-time demand response with stochastic optimization. This integration, while not yet fully realized, is suggested as a critical advancement for ensuring both system performance optimization and long-term sustainability. Therefore, this paper calls for further research to develop resilient hybrid renewable microgrids that integrate flexibility with sustainability through advanced optimization models and demand response strategies.