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A diesel replacement strategy for off-grid systems based on progressive introduction of PV and batteries: An Indonesian case study

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  • Rodríguez-Gallegos, Carlos D.
  • Gandhi, Oktoviano
  • Bieri, Monika
  • Reindl, Thomas
  • Panda, S.K.

Abstract

In many locations, grids are energized only by diesel generators (DG-only systems). Due to the requirements such as cost reduction and performance improvement, solar panels and batteries have increasingly been introduced into these grids. Nonetheless, many initiatives to hybridize the grids are still thwarted because of the high initial investment. In this work, a gradual diesel replacement strategy is proposed. The strategy starts with a lower initial investment and gradually adds solar panels and batteries in the subsequent years using accumulated savings from the lower diesel consumption. An Indonesian island is used as a case study to validate the proposed strategy. When only diesel generators are used, the life-cycle cost over a period of 25 years is 10.53 mil. USD. It is demonstrated through optimization that by lowering the initial investment to 0.25 mil. USD and gradually using the yearly savings to reinvest in purchasing additional solar panels and batteries, the life-cycle cost is reduced to 6.62 mil. USD (only 3.8% is required for the initial investment). Hence, with the proposed approach, the barrier of initial investment is minimized, and thus more renewable energy sources can be integrated into existing DG-only systems making the power generation more environment-friendly.

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  • Rodríguez-Gallegos, Carlos D. & Gandhi, Oktoviano & Bieri, Monika & Reindl, Thomas & Panda, S.K., 2018. "A diesel replacement strategy for off-grid systems based on progressive introduction of PV and batteries: An Indonesian case study," Applied Energy, Elsevier, vol. 229(C), pages 1218-1232.
    • Handle: RePEc:eee:appene:v:229:y:2018:i:c:p:1218-1232
    DOI: 10.1016/j.apenergy.2018.08.019
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    References listed on IDEAS

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    3. Gandhi, Oktoviano & Rodríguez-Gallegos, Carlos D. & Zhang, Wenjie & Reindl, Thomas & Srinivasan, Dipti, 2022. "Levelised cost of PV integration for distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    4. Jurasz, Jakub & Guezgouz, Mohammed & Campana, Pietro E. & Kies, Alexander, 2022. "On the impact of load profile data on the optimization results of off-grid energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
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    7. Oluwaseun Olanrewaju Akinte & Boonyang Plangklang & Boonrit Prasartkaew & Taiwo Samuel Aina, 2023. "Energy Storage Management of a Solar Photovoltaic–Biomass Hybrid Power System," Energies, MDPI, vol. 16(13), pages 1-31, July.
    8. Bertheau, Paul & Cader, Catherina, 2019. "Electricity sector planning for the Philippine islands: Considering centralized and decentralized supply options," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    9. Jamal, Taskin & Carter, Craig & Schmidt, Thomas & Shafiullah, G.M. & Calais, Martina & Urmee, Tania, 2019. "An energy flow simulation tool for incorporating short-term PV forecasting in a diesel-PV-battery off-grid power supply system," Applied Energy, Elsevier, vol. 254(C).
    10. Luerssen, Christoph & Gandhi, Oktoviano & Reindl, Thomas & Sekhar, Chandra & Cheong, David, 2020. "Life cycle cost analysis (LCCA) of PV-powered cooling systems with thermal energy and battery storage for off-grid applications," Applied Energy, Elsevier, vol. 273(C).
    11. Alex Felice & Jacopo Barbieri & Ander Martinez Alonso & Maarten Messagie & Thierry Coosemans, 2023. "Challenges of Phasing out Emergency Diesel Generators: The Case Study of Lacor Hospital’s Energy Community," Energies, MDPI, vol. 16(3), pages 1-15, January.
    12. Mazzeo, Domenico, 2019. "Nocturnal electric vehicle charging interacting with a residential photovoltaic-battery system: a 3E (energy, economic and environmental) analysis," Energy, Elsevier, vol. 168(C), pages 310-331.
    13. Arévalo, Paúl & Cano, Antonio & Jurado, Francisco, 2022. "Mitigation of carbon footprint with 100% renewable energy system by 2050: The case of Galapagos islands," Energy, Elsevier, vol. 245(C).
    14. Gandhi, Oktoviano & Zhang, Wenjie & Kumar, Dhivya Sampath & Rodríguez-Gallegos, Carlos D. & Yagli, Gokhan Mert & Yang, Dazhi & Reindl, Thomas & Srinivasan, Dipti, 2024. "The value of solar forecasts and the cost of their errors: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    15. Gorman, Will & Jarvis, Stephen & Callaway, Duncan, 2020. "Should I Stay Or Should I Go? The importance of electricity rate design for household defection from the power grid," Applied Energy, Elsevier, vol. 262(C).
    16. Choi, Chong Seok & Ravi, Sujith & Siregar, Iskandar Z. & Dwiyanti, Fifi Gus & Macknick, Jordan & Elchinger, Michael & Davatzes, Nicholas C., 2021. "Combined land use of solar infrastructure and agriculture for socioeconomic and environmental co-benefits in the tropics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).

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