Integration of energy storage with diesel generation in remote communities
Authors: Trevizan Rodrigo D. , Headley Alexander J. , Geer Robert , Atcitty Stanley , Gyuk Imre 
Published: October 2021

Highlights

Battery energy storage may improve energy efficiency and reliability of hybrid energy systems composed by diesel and solar photovoltaic power generators serving isolated communities.

In projects aiming update of power plants serving electrically isolated communities with redundant diesel generation, battery energy storage can improve overall economic performance of power supply system by reducing fuel usage, decreasing capital costs by replacing redundant diesel generation units, and increasing generator system life by shortening yearly runtime.

Fast-acting battery energy storage systems with grid-forming inverters might have potential for improving drastically the reliability indices of isolated communities currently supplied by diesel generation.

This paper will highlight unique challenges and opportunities with regard to energy storage utilization in remote, self-sustaining communities. The energy management of such areas has unique concerns. Diesel generation is often the go-to power source in these scenarios, but these systems are not devoid of issues. Without dedicated maintenance crews as in large, interconnected network areas, minor interruptions can be frequent and invasive not only for those who lose power, but also for those in the community that must then correct any faults. Although the immediate financial benefits are perhaps not readily apparent, energy storage could be used to address concerns related to reliability, automation, fuel supply concerns, generator degradation, solar utilization, and, yes, fuel costs to name a few. These ideas are shown through a case study of the Levelock Village of Alaska. Currently, the community is faced with high diesel prices and a difficult supply chain, which makes temporary loss of power very common and reductions in fuel consumption very impactful. This study will investigate the benefits that an energy storage system could bring to the overall system life, fuel costs, and reliability of the power supply. The variable efficiency of the generators, impact of startup/shutdown process, and low-load operation concerns are considered. The technological benefits of the combined system will be explored for various scenarios of future diesel prices and technology maintenance/replacement costs as well as for the avoidance of power interruptions that are so common in the community currently.

Graphic abstract

Discussion

In several cases, energy storage can provide a means to promote energy equity by improving remote communities’ power supply reliability to levels closer to what the average urban consumer experiences at a reduced cost compared to transmission buildout. Furthermore, energy equity represents a hard-to-quantify benefit achieved by the integration of energy storage to isolated power systems of under-served communities, which suggests that the financial aspects of such projects should be questioned as the main performance criterion. To improve battery energy storage system valuation for diesel-based power systems, integration analysis must be holistic and go beyond fuel savings to capture every value stream possible.