Renewable energy sources (RES) are well known sources for providing energy in distant regions. This is the reason that hybrid isolated power system (HIPS) is utilized which integrates solar energy and wind energy. Renewable energy (RE) relies on environmental conditions. The technologies such as batteries or diesel generator (DG) need to be employed to meet the load demand. Battery energy storage system (BESS) can diminish the limitation but this can add expense and intricacy to the system. DG is an excellent choice to meet load demand but it has certain limitations. Due to diesel load set point, excess RE generation is consumed via regulating devices such as dump load or BESS. As a result, systems designed for high RE penetration are now more complex, expensive, and wasteful. This study analyses low load diesel (LLD). It is a method for minimizing surplus generation hence decreasing system intricacy. It also reduces fuel utilization without causing the control architecture to become overly complicated hence reducing the need for BESS. It provides an alternate method for redefining diesel generation's low load capacity. This work provides an economic analysis of LLD including comparisons to traditional BESS applications. This analysis shows low operational cost of the system including LLD than BESS. Hence demonstrating that BESS can be replaced with LLD. The use of LLD also lowers fuel usage. A power system model of HIPS is simulated using MATLAB/Simulink.
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