Feasibility analysis of smart renewable hubs in non-interconnected island power systems: A case study for gridsol
Abstract
On the path towards the decarbonisation of future energy systems, the GRIDSOL project proposes Smart Renewable Hubs as a solution to provide secure and clean electricity, by combining renewables and storage technologies through an advanced control system. The study aims at evaluating the financial attractiveness of investments in smart renewable hubs according to market framework conditions and local resources, in three non-interconnected systems: Crete, Fuerteventura and Madeira. The cash flow analysis uses three economic indicators (NPV, LCOE and IRR) to investigate investments in the years 2020, 2030 and 2050. The outcomes show that investments in 2030 and 2050 are profitable for almost all the cases and locations. SRH and GRIDSOL configurations perform well in all locations, with SRHs profitability peaking in Fuerteventura (170 [MM€]). The sensitivity analysis performed on LCOEs, which were found to be larger than the average generation prices, shows that changes in PV and CSP CAPEX mostly affect the results. In some cases, changes in biogas, CO2 and natural gas prices are also relevant. Future developments in technology costs and remuneration frameworks will likely pave the way for the competitive case of smart renewable hubs in island energy systems.
Info
Conference Paper, 2020
UN SDG Classification
DK Main Research Area
Science/Technology
