  Ownership cost calculation plays an important role in optimal operation of
distributed energy resources (DERs) and microgrids (MGs) in the future power
system, known as smart grid. In this paper, a general framework for ownership
cost calculation is proposed using uncertainty and risk analyses. Four
ownership cost calculation approaches are introduced and compared based on
their associated risk values. Finally, the best method is chosen based on a
series of simulation results, performed for a typical diesel generator (DiG).
Although simulation results are given for a DiG (as commonly used in MGs), the
proposed approaches can be applied to other MG components, such as batteries,
with slight modifications, as presented in this paper. The analyses and
proposed approaches can be useful in MG optimal design, optimal power flow, and
market-based operation of the smart grid for accurate operational cost
calculations.
