Cost–benefit analysis of remote hybrid wind–diesel power stations: Case study Aegean Sea islands

More than one third of world population has no direct access to interconnected electrical networks. Hence, the electrification solution usually considered is based on expensive, though often unreliable, stand-alone systems, mainly small diesel-electric generators. Hybrid wind–diesel power systems are among the most interesting and environmental friendly technological alternatives for the electrification of remote consumers, presenting also increased reliability. More precisely, a hybrid wind–diesel installation, based on an appropriate combination of a small diesel-electric generator and a micro-wind converter, offsets the significant capital cost of the wind turbine and the high operational cost of the diesel-electric generator. In this context, the present study concentrates on a detailed energy production cost analysis in order to estimate the optimum configuration of a wind–diesel-battery stand-alone system used to guarantee the energy autonomy of a typical remote consumer. Accordingly, the influence of the governing parameters—such as wind potential, capital cost, oil price, battery price and first installation cost—on the corresponding electricity production cost is investigated using the developed model. Taking into account the results obtained, hybrid wind–diesel systems may be the most cost-effective electrification solution for numerous isolated consumers located in suitable (average wind speed higher than 6.0 m/s) wind potential regions.