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Green Innovation in Energy Storage for Isolated Microgrids: A Monte Carlo Approach

Author

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  • Jake Elliot

    (School of Engineering, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Les Bowtell

    (School of Engineering, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Jason Brown

    (School of Electrical Engineering and Robotics, Queensland University of Technology, Brisbane, QLD 4000, Australia)

Abstract

Thursday Island, a remote administrative hub in Australia’s Torres Strait, exemplifies the socio-technical challenges of transitioning to sustainable energy amid diesel dependence and the intermittency of renewables. As Australia pursues Net Zero by 2050, innovative storage solutions are pivotal for enabling green innovation in isolated microgrids. This study evaluates Vanadium Redox Flow Batteries (VRFBs) and Lithium-Ion batteries as key enabling technologies, using a stochastic Monte Carlo simulation to assess their economic viability through Levelized Cost of Storage (LCOS), incorporating uncertainties in capital costs, operations, and performance over 20 years. Employing a stochastic Monte Carlo simulation with 10,000 iterations, this study provides a probabilistic assessment of LCOS, incorporating uncertainties in key parameters such as CAPEX, OPEX, efficiency, and discount rates, offering a novel, data-driven framework for evaluating storage viability in remote microgrids. Results indicate VRFBs’ superiority with a mean LCOS of 168.30 AUD/MWh versus 173.50 AUD/MWh for Lithium-Ion, driven by scalability, durability, and safety—attributes that address socio-economic barriers like high operational costs and environmental risks in tropical, off-grid settings. By framing VRFBs as an innovative green solution, this analysis highlights opportunities for new business models in remote energy sectors, such as reduced fossil fuel reliance (3.6 million litres diesel annually) and enhanced community resilience against energy poverty. It also underscores challenges, including capital uncertainties and policy needs for innovation uptake. This empirical case study contributes to the sustainable energy transition discourse, offering insights for policymakers on overcoming resistance to decarbonization in geographically constrained contexts, aligning with green innovation goals for systemic sustainability.

Suggested Citation

  • Jake Elliot & Les Bowtell & Jason Brown, 2025. "Green Innovation in Energy Storage for Isolated Microgrids: A Monte Carlo Approach," Energies, MDPI, vol. 18(17), pages 1-21, September.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:17:p:4732-:d:1742878
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    References listed on IDEAS

    as
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    2. Muhammed Samil Yesilyurt & Huseyin Ayhan Yavasoglu, 2023. "An All-Vanadium Redox Flow Battery: A Comprehensive Equivalent Circuit Model," Energies, MDPI, vol. 16(4), pages 1-14, February.
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    4. Nathan Guignard & Christian Cristofari & Vincent Debusschere & Lauric Garbuio & Tina Le Mao, 2022. "Micro Pumped Hydro Energy Storage: Sketching a Sustainable Hybrid Solution for Colombian Off-Grid Communities," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
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