Decentralized versus Clustered Microgrids: An Energy Systems Study for Reliable Off-Grid Electrification of Small Islands

Olivia Francesca B. Agua, Robert Joseph A. Basilio, Mc Erschad D. Pabillan, Michael T. Castro, Philipp Blechinger and Joey D. Ocon
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Olivia Francesca B. Agua: Laboratory of Electrochemical Engineering (LEE), Department of Chemical Engineering, University of the Philippines Diliman, Diliman 1101, Philippines
Robert Joseph A. Basilio: Laboratory of Electrochemical Engineering (LEE), Department of Chemical Engineering, University of the Philippines Diliman, Diliman 1101, Philippines
Mc Erschad D. Pabillan: Laboratory of Electrochemical Engineering (LEE), Department of Chemical Engineering, University of the Philippines Diliman, Diliman 1101, Philippines
Michael T. Castro: Laboratory of Electrochemical Engineering (LEE), Department of Chemical Engineering, University of the Philippines Diliman, Diliman 1101, Philippines
Philipp Blechinger: Off-Grid Systems Group, Reiner Lemoine Institut, Rudower Chaussee 12, 12489 Berlin, Germany
Joey D. Ocon: Laboratory of Electrochemical Engineering (LEE), Department of Chemical Engineering, University of the Philippines Diliman, Diliman 1101, Philippines

Energies, 2020, vol. 13, issue 17, 1-22

Abstract: Philippine off-grid islands are mostly electrified by diesel generators, resulting in costly electricity that is interrupted by fuel supply disruptions. The archipelagic nature of the country also impedes off-grid electrification due to the high capital cost of grid extension. Transitioning from diesel-only systems to hybrid renewable energy systems and interconnecting the island microgrids can solve these problems while promoting cleaner energy production. In this work, a comparative study on decentralized and clustered hybrid renewable energy system microgrids in the Polillo group of islands in the Philippines, using HOMER Pro, was performed. Microgrids comprising solar photovoltaics, lithium-ion battery energy storage, and diesel generators were designed on each island. Clustered systems encompassing multiple islands in the island group were simulated by also considering the least-cost interconnection paths. The techno-economics of each decentralized or clustered system and the four-island system were evaluated based on the levelized cost of electricity (LCOE). Reliability was assessed using the change in LCOE upon the failure of a component and during weather disturbances. Transitioning from diesel-only systems to hybrid systems reduces generation costs by an average of 42.01% and increases the renewable energy share to 80%. Interconnecting the hybrid systems results in an average increase of 2.34% in generation costs due to the cost of submarine cables but improves system reliability and reduces the optimum solar photovoltaic and lithium-ion storage installations by 6.66% and 8.71%, respectively. This research serves as a framework for the interconnection pre-feasibility analysis of other small off-grid islands.

Keywords: diesel; solar photovoltaics; lithium-ion; decentralized microgrids; clustered microgrids; renewable energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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