Optimal Sizing and Performance Assessment of a Hybrid Diesel and Photovoltaic with Battery Storage based on Take-or-Pay of Power Purchase Agreement

Abstract

In remote and rural areas where diesel generators are usually employed for electricity production, the photovoltaic (PV) panels combined with battery energy storage systems (BESS) can lead affordable and reliable power generation. In this work, a real case study in Nusa Penida Island, Bali Province, Indonesia, is conducted for studying the optimal sizing and performance assessment of a hybrid diesel-PV-BESS system limited by a take or pay of Power Purchase Agreement (PPA). The island’s solar irradiance is 5,36 kWh/m²/day and 7 x 1.7 MW diesel power plant stations are currently run for fulfilling the island’s electricity demand. The stations are embedded into an existing 20 kV distribution grid. Using the electricity demand projection of several representative days in a year, the software is utilized in this work for designing and optimizing the size of PV and BESS integrated to the diesel power generators. In this study, the performance of configurations with four different sizes of PV and BESS is assessed and evaluated using load flow analysis, short circuit analysis and transient stability analysis. The simulation results demonstrate that the optimal sizing of the hybrid system consists of 10 MWp PV and 10 MWh BESS with Levelized Cost of Energy of 9.45 c USD/kWh. It lowers 40% of the current cost. Considering the initial, maintenance, replacement and fuel costs, the net present cost of the optimal configuration is 135,306,800 USD. This study confirms that the renewable energy penetration in remote and rural islands can be increased by optimally utilizing energy storage.