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Economic assessment of smart grid initiatives for island power systems


  • Sigrist, L.
  • Lobato, E.
  • Rouco, L.
  • Gazzino, M.
  • Cantu, M.


Islands are facing considerable challenges in meeting their energy needs in a sustainable, affordable and reliable way. The present paper develops an integrated approach to economically assess initiatives that can transform island power systems into smart ones. Single and multi-action initiatives fostering the deployment of renewable energy sources (RES), energy storage systems (ESS), demand-side management (DSM), and electric vehicle (EV) are considered. An hourly unit commitment on a weekly basis is proposed to assess the impact of the initiatives on the system operation costs of five prototype island power systems, which have been identified by applying clustering techniques to a set of sixty islands power systems. The different investment costs of the initiatives are accounted for determining their corresponding internal rate of return (IRR) through their lifetime. The economic assessment of single and multi-action initiatives for five prototype islands representing sixty island power systems quantifies which initiatives are most suitable for which type of island power system. The assessment shows that islands of different sizes and features require different initiatives. Larger islands tend to DSM initiatives, whereas smaller islands tend to RES initiatives. Multi-action initiatives achieve highest system operation cost reduction, whereas single action initiatives yield to highest IRR.

Suggested Citation

  • Sigrist, L. & Lobato, E. & Rouco, L. & Gazzino, M. & Cantu, M., 2017. "Economic assessment of smart grid initiatives for island power systems," Applied Energy, Elsevier, vol. 189(C), pages 403-415.
  • Handle: RePEc:eee:appene:v:189:y:2017:i:c:p:403-415
    DOI: 10.1016/j.apenergy.2016.12.076

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    Cited by:

    1. Meschede, Henning & Esparcia, Eugene A. & Holzapfel, Peter & Bertheau, Paul & Ang, Rosario C. & Blanco, Ariel C. & Ocon, Joey D., 2019. "On the transferability of smart energy systems on off-grid islands using cluster analysis – A case study for the Philippine archipelago," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    2. Dorotić, Hrvoje & Doračić, Borna & Dobravec, Viktorija & Pukšec, Tomislav & Krajačić, Goran & Duić, Neven, 2019. "Integration of transport and energy sectors in island communities with 100% intermittent renewable energy sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 99(C), pages 109-124.
    3. Alessandro Corsini & Eileen Tortora, 2018. "Sea-Water Desalination for Load Levelling of Gen-Sets in Small Off-Grid Islands," Energies, MDPI, Open Access Journal, vol. 11(8), pages 1-18, August.
    4. Ahmadipour, Masoud & Hizam, Hashim & Othman, Mohammad Lutfi & Radzi, Mohd Amran Mohd & Murthy, Avinash Srikanta, 2018. "Islanding detection technique using Slantlet Transform and Ridgelet Probabilistic Neural Network in grid-connected photovoltaic system," Applied Energy, Elsevier, vol. 231(C), pages 645-659.
    5. Mendoza-Vizcaino, Javier & Raza, Muhammad & Sumper, Andreas & Díaz-González, Francisco & Galceran-Arellano, Samuel, 2019. "Integral approach to energy planning and electric grid assessment in a renewable energy technology integration for a 50/50 target applied to a small island," Applied Energy, Elsevier, vol. 233, pages 524-543.
    6. Pfeifer, Antun & Dobravec, Viktorija & Pavlinek, Luka & Krajačić, Goran & Duić, Neven, 2018. "Integration of renewable energy and demand response technologies in interconnected energy systems," Energy, Elsevier, vol. 161(C), pages 447-455.
    7. Majidi Nezhad, M. & Groppi, D. & Marzialetti, P. & Fusilli, L. & Laneve, G. & Cumo, F. & Garcia, D. Astiaso, 2019. "Wind energy potential analysis using Sentinel-1 satellite: A review and a case study on Mediterranean islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 499-513.


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