To confront the challenges associated with the rising of carbon footprint and energy demand, the Renewable Energy Sources (RESs) based smart microgrids are becoming the viable paradigm. In this work, based on cost exploration, greenhouse gas (GHG) emission, and availability of RESs, the feasibility study, design, optimization, and implementation of institutional based smart Polygeneration microgrid is presented. To investigate the most optimal scenario, the detailed analysis of various microgrid topologies in grid connected as well as in off-grid mode with and without the storage system is carried out. The analysis outcome reveals that the solar PV system in grid connected (i.e. G + PV) mode is most preferable. But, the consideration of intermittency as well as the volatile behaviour of the solar PV system forces incorporation of a battery storage system to overcome the fluctuated voltage profile and interrupted power supply, which raises the Cost of Energy (COE), Net Present Cost (NPC), and operating cost to another extent. To obtain the more realistic results, the uncertainty of load demand, as well as RESs, is also taken into account. Further, the comparative analysis of the proposed microgrid topology with existing conventional system is also presented. The result shows that in grid-connected mode, the key cost parameter belongs to PV system (i.e. INR 20.68 million) followed by grid operating cost (i.e. INR7.28 million), battery (i.e. INR 3.11 million) and converter (i.e. INR 2.083 million). While in the off-grid mode the major part of the total system cost is covered by battery storage system (i.e. INR 74.76 million) followed by PV system (i.e. INR 27.96 million) and converter (i.e. 2.385 million). The comparative study shows total system cost associated with proposed microgrid G + PV + B (i.e. INR 33.163 million) is 31.57% of current scenario while the total system cost associated with PV + B (INR 105.036 million) is 95.41% higher than the current scenario. The recommended system mitigated 226.26-kilo kg of CO2, 980.93 kg of SO2, and 497.73 kg of Nitrogen oxides per year.
