Planning for the integration of renewable energy systems and productive zone in Remote Island: Case of Sebira Island

Abstract

Sebira Island is an Indonesian remote island that relies on its energy source mostly from diesel-generated electricity. The island's main economic activities include activities related to the coastal and fishery sectors. This research paper evaluates long-term planning of a mini-grid hybrid energy system from solar, wind, and diesel in island level based on technical and economic aspects. The mini-grid hybrid system is designed not only to meet the electricity demands of residential, community, but also integrated with the development of productive zone to advance the local economy by enhancing the added value of local products and services. This study used TIMES model to obtain optimized energy system which will be used as an input for developing productive zone of the island. The optimization result is a portfolio of the energy system of Solar PV and wind turbine generators and Li-Ion battery storage. The total investment cost of the energy system is USD 130,000. In order for the designed hybrid-mini grid to be financially feasible, a minimum of 25% of the grant is required. Innovative financing lies in a low-rate crowdfunding scheme. Most schemed productive activities are financially feasible and competitively priced in the market. Designed energy system model integrated with the productive zone generates a yearly net profit of USD 103,700 and create jobs for 51 islanders.