Increasing RES penetration through H2 technologies on Flores island, Azores: A techno-economic analysis

Abstract

On Flores island (Azores, Portugal), energy production depends up to 47% on fossil fuels, namely Diesel. To minimize CO2 emissions, the dependency on fuel prices, and to mitigate the consequences of variability and intermittency of renewable energy sources, a new energy system, based on H2 storage was analysed. To achieve the optimal size of the system, a computer model was developed and a multi-objective genetic algorithm function was used to minimize three objectives: the difference of levelised cost of energy (△LCOE), CO2 emissions and the percentage of renewable energy dumped (RRES, dump). From the set of solutions obtained, one that meets RRES, dump ≤ 1%, lowest CO2 emissions and lowest △LCOE is chosen and an economical and energetic analysis is performed. The newly proposed system reduces Diesel consumption by 68,7% (1057487 L/year) and CO2 emissions by 65,9% (2455,1 CO2 tons/year) achieving a renewable energy sources (RES) penetration of 89% (36% increase), but fails to decrease the levelised cost of energy (56,62 €/MWh increase). However, a way to make the project viable through financial support is presented and an alternative to reduce the levelised cost of energy by commercialising the products of electrolysis, hydrogen and oxygen, is proposed. Finally, it is expected that with further research and development of H2 technologies, economic and energetic results will get more advantageous, opening up new perspectives for the future.