Renewable Electricity Generation in Small Island Developing States: The Effect of Importing Ammonia

Abstract

Recently, we demonstrated for Curaçao that renewable electricity generation from wind combined with energy storage in the form of ammonia is competitive with imported fossil fuels, such as LNG, oil, and coal. In the current work, we have expanded the model by considering imported green ammonia as an alternative to local electricity generation and storage. Local production of ammonia as an energy storage medium was compared with imported ammonia to make up the electricity produced from onshore wind, for Curaçao and Fiji’s largest island Viti Levu. Curaçao and Viti Levu have been selected as two interesting extremes with favorable and non-favorable wind conditions, respectively. Assuming a market price of 500 USD/t NH3, it is found that importing ammonia is the most feasible solution for both islands, with a levelized cost of electricity (LCOE) of 0.11 USD/kWh for Curaçao and 0.37 USD/kWh for Viti Levu. This compares to 0.12 USD/kWh for Curaçao; however, for Viti Levu, this value increases to 1.10 USD/kWh for a completely islanded system based on onshore wind and imported ammonia. These islands represent two extreme cases in terms of wind load factor and load consistency, as Curaçao has a high and consistent wind load factor when compared to Viti Levu. Thus, the conclusions obtained for these locations are expected to be applicable for other small island developing states.