Abstract

Most power systems in the east of Indonesia require only small capacities which are supplied by diesel generators, especially in the area of small islands which are suitable for isolated grid. On the other hand, Indonesia has a high potential for solar energy which can be employed to supplement the power generation as well as to reduce the cost of energy (COE). However, the utilization of solar energy through the photovoltaic (PV) system might cause stability problems. The battery energy storage system (BESS) has been recognized for its capability to overcome stability issues. Still, the adoption of a hybrid PV system and BESS requires considerable capital investment, which may cause the COE to increase. This study identifies the optimal hybrid configuration of the diesel power plant, PV system, and BESS to maximize economic profit when compared to diesel power plants of an isolated grid in Indonesia. COE is used as an economic parameter to determine the most optimal capacities of the PV system and BESS. The simulation results show that the proposed hybrid configuration has a lower COE compared to diesel power plants, which are below 20.81 cents USD[1].

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