Energy Independence for Islands
Authors:
Willem de Vries (Charged Islands)
Mohamad Alameh (Charged Islands)
In cooperation with Floris van Dijk (Elestor)
Abstract
Due to recent declines in the cost of photovoltaic solar generators (PV) and battery energy storage systems (BESS), baseload renewable energy systems (BRES) can now outcompete a grey generation mode (diesel electricity generation) on a 24/7 basis. BRES now promise a 30% reduction in electricity generation costs compared to diesel generators for a wide set of geographies, often reducing generation costs by 100 EUR/MWh. This gap is expected to grow with the introduction of cheaper long duration energy storage (LDES) systems in the future, potentially reducing cost of electricity supply by 50% compared to diesel generation.
With economic arguments in favour of BRES, a movement towards deployment of such systems can be expected and is also encouraged and supported by the writers of this white paper.
Numerous islands will have to overcome various hurdles though trying to implement BRES. Examples of such hurdles are shortage of development & financing capabilities as well as the shortage of land and a lock-in of diesel generation assets.