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The Feasibility Study of Micro-grid Project at

South Pacific Island Countries and Territories(PICTs)


Technical Presentation
Jan. 29. 2019

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Table of Content

1. Introduction of Feasibility Study


- By Taeil Kang, One Energy Island

2. Grid Design for Peleliu Carbon Free Island


- By Dr. Boknam Ha, Anygate

3. Optimal System Design of Peleliu Microgrid


- By Prof. Il-Yop Chung, Kookmin University

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Part I

Introduction of Feasibility Study

TAEIL KANG
CEO, One Energy Island Co., Ltd.

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Purpose of Feasibility Study
▪ In Pacific Island Countries and Territories (PICTs), still many people living in remote
islands do not have reliable energy access. In recent years, a renewable energy based
mini-grid have been emerging as a solution to provide electricity in remote islands at
an affordable cost in PICTs.

▪ However, still there are issues, both technical and business, to be solved if a mini-grid
becomes a feasible solution to those remote islands.

▪ The purpose of this feasibility study is to design and propose a mini-grid model which
meets 1) grid stability with increased contribution of renewable energies, and 2)
LCOE competitiveness with cost of electricity from diesel, and which offers a suitable
and scalable mini-grid model for PICTs.

▪ This feasibility study was conducted by One Energy Island(OEI), in a consortium with
Anygate and Kookmin University. Korea Energy Agency funded the feasibility study.

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Palau and Peleliu

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Palau Energy Statistics

Source: PPUC (Palau Public Utility Corporation)

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Palau Energy Statistics

Source: PPUC (Palau Public Utility Corporation)

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Palau Energy Roadmap

Source: PEA (Palau Energy Administration)

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Peleliu Energy System

▪ Population: 571
▪ Peak load: 240kW
▪ Power system
- Diesel: 2.218MW (2 units of 750kW, 2 unit of 275kW, 6 units of 28kW)
- Solar PV: 168kWp (Equipped with SMA Fuel Saver Controller)
- Total power generation: 1,217MWh (2016)
- Contribution of renewable energy in electricity supply: 17%
▪ Electricity Tariff
- Residential: USD 0.26/kWh
- Commercial: USD 0.31/kWh

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Part III

Optimal System Design of


Peleliu Micro-grid

Professor Il-Yop Chung,


with Ph.D students Munir Husein, Vu Ba Hau, and Rehman Zafar
Smartgrid Laboratory at Kookmin University
Executive summary

• This report presents the feasibility study for constructing a stand-alone


microgrid in the island of Peleliu, Palau.
• The study explores the possibility of using renewable energy sources (RES),
such as photovoltaic(PV) and wind turbine(WT), and energy storage system
(ESS).
• The current microgrid in Peleliu contains 17% renewable energy penetration.
Four cases are presented: 17% (current system), 50%, 75%, and 100%
renewable energy penetration(REP). In each case, we evaluate the economic
feasibility of microgrid and their optimal energy mix of distributed energy
resources (DER) with their detailed economics presented.
• Then, we evaluated their design feasibility of microgrid considering load flow
analysis, fault analysis, and voltage/frequency stability to make sure stable and
secure operation of microgrid.

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Overall Microgrid Design Procedure

Power System Analysis


❖ Load flow
❖ Faults
❖ Abnormal conditions
Microgrid Design based on ❖ Voltage stability FINAL
Techno-Economic Analysis ❖ Frequency stability CONFIGURATION
❖ DER Mix AND DESIGN !
❖ DER Optimal Sizing
❖ Economic Dispatch
❖ Financial feasibility

Iterative correction
Data Preparation
❖ Environmental
and energy data
❖ Financial data
❖ Power system
technical data

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Microgrid Design Based on Techno-economic Analysis
Input data
Weather DERs technical
Load profile Project costs Project finance Incentives
resources parameters

i: Index of configuration Uncertainty


k: Total number of configurations Start with k=0 analysis
k=k+1
Sensitivity
Performance model analysis
Simulate the one-year optimal operation of the system subject to technical,
reliability, and economic constraints
Scenario
analysis
No
Configuration feasible?
No Yes
Yes
Economic model
End k=N Perform economic analysis on each feasible configuration by calculating all
its cash inflow and outflows, and metrics such as NPC, COE, and NPV

Output
Sizing analysis Energy analysis Financial analysis

▪ S/W Tool: HOMER Pro and MDSTool

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Power System Analysis

System modeling in PowerFactory


➢ Single-line diagram
➢ Sizing of PVs, ESSs, Diesel generators
➢ Possible installing locations of PVs, ESSs
➢ Controllers for ESSs, Diesel generators
➢ Possible grid expansion

System analysis in PowerFactory


➢ Normal operating conditions: power, voltage, frequency
➢ Abnormal operating conditions: faults, severe load
variations, machine-trip events, black start
➢ Voltage stability under different dynamic conditions
➢ Frequency stability under different dynamic conditions

Final
Configuration!
▪ S/W Tool: Power Factory

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Table of Content

❑ Survey on Peleliu Grid Information


▪ Energy and Environmental Data Analysis for Peleliu
▪ Power System Operation in Peleliu

❑ Techno-economic Analysis
▪ Optimal energy mix for each REP level
▪ Comparison for DER dispatching algorithm for each REP level

❑ Power System Analysis


▪ Load Flow Analysis
▪ Fault Analysis
▪ Stability Analysis

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Peleliu Microgrid Operation Data
Daily power generation/consumption data analysis

▪ Data Collected from SMA FSC


➢ Electricity generation from diesel gensets and PV panels and load consumption
profiles of Peleliu for 93 days (08/27/2018~12/04/2018) obtained from the SMA
Fuel Save Controller (FSC).
➢ The data in SMA FSC were measured with 1-hour- and 10-minute-resolution.
➢ 70-days-data among 93-days-data were good in shape for data analysis
➢ The 10-minute resolution average data of 70 days is used for data analysis.

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Peleliu Microgrid Operation Data
Daily power generation/consumption data analysis

➢ Total daily consumption


in weekends are
normally higher than in
weekdays.

➢ Peak loads typically occur


between 18:00pm and
22:00pm.

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Peleliu Microgrid Operation Data
Daily power generation/consumption analysis

▪ Summary of Load Data Collected from SMA FSC


<Statistics for the collected data of 70 days from SMA Fuel Save Controller>
Parameter Unit Value
Maximum load kW 194
Medium load kW 139.2
Minimum load kW 96
Total energy consumption for 70 days kWh 233,835.2
Total PV generation for 70 days kWh 35,354.3
Total Diesel generation for 70 days kWh 198,480.9
Average daily energy demand kWh 3,340.5
Average daily PV generation kWh 505.1
Average daily Diesel generation kWh 2835.4

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Peleliu Microgrid Operation Data
Solar irradiance and wind speed analysis

▪ For the purpose of microgrid design, one year of renewable energy data (solar
irradiance and wind speed) is adequate, however, having longer periods of data will
enhance understanding and help in rigorous prediction of resources.
▪ Weather data of solar irradiance and wind speed was obtained from the site visit.
There are three weather stations in Palau, which are located in the State of
Melekeok, Ngardmau, and Ngarrard. We use the data from Melekeok Station, as it
the most complete among the three stations. Monthly Daily radiation Wind speed
Average (kWh/m2/day) (m/s)
Jan. 3.934 4.969
Feb. 5.003 5.213
Mar. 5.185 4.869
Apr. 4.607 4.100
May 5.215 3.220
Jun. 4.286 2.768
Jul. 3.790 4.985
Aug. 4.407 3.121
Melekeok Sep. 3.917 4.989
Oct. 4.027 3.909
Nov. 4.461 3.334
Dec. 4.126 4.874
Annual 4.390 4.150

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Peleliu Microgrid Operation Data
PV Panel and Inverters

▪ Data of the existing 164kW PV panels and SMA inverters

Trinasolar PV module: PV technical parameters: TSM-275PC05A (II)


TSM-275PC05A (II) Model TSM-275PC05A (II)
Manufacturer Trina Solar
Technology Mono-c-Si
Maximum power 275 Wdc
Module area 1.63 m2
Design life 25years
SMA Sunny Number of cells 60
Tripower Inverter Nominal efficiency 17.1%
Maximum power voltage 31.3 Vdc
Maximum power current 8.79 Adc
Open-circuit voltage 38.6 Vdc
Mitsubishi PV module Short-circuit current 9.33 Adc

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Peleliu Microgrid Operation Data
Diesel generators
▪ There are two types of diesel generators normally used in Peleliu:
➢ Hatz (168kW in total = 6*28kW) and FG Wilson (300kW)

▪ Data for Hatz diesel gensets


Fuel consumption Features and Controllers

Model TDSA6
Rated power 28 kW
Manufacturer HATZ
Engine speed 1800 rpm
Standard voltage 480 V
Frequency 60 Hz
Lifetime 60,000 hours
Woodward Easygen 3000
for Hatz Minimum load ratio 25%
Source: Manufacturer’s datasheet

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Peleliu Microgrid Operation Data
Diesel generators

▪ Data for FG Wilson diesel gensets


➢ FG Wilson operates during
the peak loading conditions
while Hatz gensets cannot
supply securely.

Fuel consumption Woodward Easygen 3000


for FG Wilson

Model P375-3
Rated power 300 kW
Manufacturer FG Wilson
Engine speed 1800 rpm
Standard voltage 480 V
Frequency 60 Hz
Lifetime 60,000 hours
Minimum load ratio 25%
Source: Manufacturer’s datasheet

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Peleliu Microgrid Operation Data
Diesel generators
• Minimum Genset Load
Description Value
Deadband for error output related to the minimum Genset loading threshold 5%
Deadband timer for error output 60 seconds
Minimum genset loading of the genset system in % of the active nominal genset 25 %
power
Ramp time of the change in the gensets active nominal power 10 seconds
Setpoint offset related to the minimum genset loading threshold 5%

• Genset Power Management


Description Value
Switch on threshold for relative genset power management in % of the active 90 %
genset nominal power
Switch on threshold for absolute genset power management 10 kW
Switch off threshold for relative genset power management in % of active genset 35 %
nominal power
Switch off threshold for absolute genset power management 20 kW
System timer for detection of excessive reserve power provided by the gensets 300 seconds
System deadband for excessive reserve power detection in % of genset active 10 %
nominal power (positive values alleviate detection)
System timer for detection of insufficient reserve power provided by the gensets 90 seconds
System deadband for insufficient reserve power detection in % of genset active 5%
nominal power (positive values alleviate detection)

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Peleliu Microgrid Operation Data
SMA Fuel Save Controller (FSC)

▪ SMA Fuel Save Controller (FSC) 2.0M:


➢ System solution for photovoltaic, diesel hybrid systems.
➢ SMA FSC 2.0M can interface up to 8 gensets and 64 SMA inverters

FG Wilson
300kW

Hatz
168kW for Total 6 units
28kW/unit

SMA inverters
(8 units of 20kW
Sunny Tripower
inverters)

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Table of Content

❑ Survey on Peleliu Grid Information


▪ Energy and Environmental Data Analysis for Peleliu
▪ Power System Operation in Peleliu

❑ Techno-economic Analysis
▪ Optimal energy mix for each REP level
▪ Comparison for DER dispatching algorithm for each REP level

❑ Power System Analysis


▪ Load Flow Analysis
▪ Fault Analysis
▪ Stability Analysis

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Microgrid Design Tools
Design S/W

▪ Comparisons between Microgrid Design Softwares:

Features HOMER MDSTool iHOGA DER-CAM SAM RETScreen


Sizing o o o o
Simulation o o o o o
Economic optimization o o o
Financial analysis o o o
PV o o o o o o
WT o o o o o o
Energy storage o o o o o o
Availability
o o
(Free download)
Multi-objective
o o
optimization
GUI o o o o

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Microgrid Design Procedure
Based on Techno-Economic Analysis

Evaluation of local
conditions • Power demand (load) analysis
• Resources analysis (solar irradiance, wind speed, etc.)

System • Types of DER to be considered (PV, WT, ESS etc.)


configuration
• Technology selection (controllers, coordination,
dispatching algorithms, etc)
Model development • Energy system model (HOMER, MDSTool etc.)
• Optimal sizes of DERs (energy mix)
Sizing of system • Operation analysis
components
• Sensitivity analysis
• Scenario analysis
System analysis

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Economic Analysis for Microgrid Design
Key Inputs and Outputs

The key inputs: The key outputs:


◦ Weather resource data for a complete ◦ Optimal configuration and sizing of each
year (solar radiation, wind speed, DER technology and various economic
temperature, streamflow, etc.). metrics that represent the cost-
◦ Load profile data for a complete year competitiveness of the system.
(primary, controllable, and dump load).
◦ Energy analysis such as energy savings,
◦ Technical parameters of DER (PV, WT, ESS, emission reduction, reliability metrics, total
small hydro, geothermal, biomass, internal
combustion engine, fuel cells, and power- annual energy production of each DER,
electronic converters). hours of operation, grid purchases and sale,
fuel consumed, total emission, capacity
◦ Project costs, which include the cost
associated with each DER (capital costs, factor, and other metrics that describe
replacement costs, o&m costs, and fuel system performance.
costs, emission penalties, utility tariff, and ◦ Financial analysis, which include reporting
power outage cost. various capital budgeting metrics such as
◦ Project financial parameters (discount net present value (NPV), return-on-
rate, inflation rate, income tax rate, investment (ROI), internal rate of return
insurance rate, property tax rate, project (IIR), among others.
debt, depreciation method).
◦ Scenario and sensitivity analysis.
◦ Incentives, which include investment- and
production-based incentives, tax credits,
emission reduction credit (ERC), net
metering, and feed-in tariff policy.

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Data Analysis for Microgrid Optimal Design
Load and Energy Resource Data
▪ Load Data: Statistically generated for a year- ▪ Renewable Energy Data: Solar
long data (w/ 10-minute-resolution) from the irradiance and wind speed measured
load data obtained from Peleliu SMA FSC from Melekeok Station in Palau Main
Island

Solar irradiance

Wind speed

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Data Analysis for Microgrid Optimal Design
Diesel Fuel Price and Consumption

• 28kW HATZ Diesel (TDSA6) • 300kW FG Wilson Diesel (P375-3)

• Environmental
properties of diesel fuel
Lower heating value 43.2
(LHV) MJ/kg
Density 820 kg/m3
Carbon content 88 %
Sulfur content 0.33 %

Power level (kW) 28 22.4 14 Power level (kW) 300 225 150
Consumption (L/hr.) 9.6 7.6 5.25 Consumption (L/hr.) 80.4 60.4 42.9
Source: Manufacturer’s datasheet Source: Manufacturer’s datasheet

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Data Analysis for Microgrid Optimal Design
ESS and WT Technologies

▪ ESS Model ▪ Wind Turbine Model


ESS Model Model 100C-21
Technology Li-ion Manufacturer Northern Power©
Capacity per ESS 1 kWh/piece Design class IEC WTGS II/A air density
Roundtrip efficiency 90% 1.225 Kg/m3
Design life 3,000kWh/piece Rated electrical power 100 kW, 3 Phase, 400 VAC,
throughput or 15 years 50 Hz
Minimum SoC 20% Design life 20 years
Rotor diameter 20.7 m
Tower type Tubular steel monopole
Hub height 37 m, 29 m
Rated wind speed 15 m/s
Cut-in wind speed 3 m/s
Cut-out wind speed 25 m/s
Extreme wind speed 59.5 m/s
Source: Manufacturer’s datasheet

Wind turbine power curve

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Data Analysis for Microgrid Optimal Design
DER Costs
Costs Value
Photovoltaic
Capital cost per kW $ 2,000
O&M cost per kW per year $ 10
Replacement cost per kW $ 2,000
Wind Turbine
Capital cost per 100 kW $ 500,000
O&M cost per 100 kW per year 1% of capital cost
Replacement cost per 100 kW Not applicable
Energy storage systems
Capital cost per kWh $500
O&M cost per kWh per year $10
Replacement cost per kWh $250
ESS inverter
Capital cost per kW $300
O&M cost per kW per hour Not applicable
Replacement cost per kW $300
Diesel generator
Capital cost per kW $500
O&M cost per kW per hour $0.03
Replacement cost per kW $500
Diesel price 1.01 $/liter (3.82 $/gallon)

Source: The following sources were reviewed


1. Renewable Power Generation Costs in 2017, IRENA
2. Electricity Storage and Renewables: Costs and markets to 2030, IRENA
3. Annual Energy Outlook 2018 with Projections to 2050, US. Energy Information Administration
4. HOMER’s Default Inputs (Based on manufacturers survey) 32
DER Dispatching Algorithm for Peleliu
SMA FSC for Diesel and PV

Daytime operation in Peleliu power system:


▪ All gensets are in AUTO mode of operation.
▪ Hatz generators are to operate in parallel with PV until the load reaches 90%
of the total nominal power of Hatz.
▪ If the load of Hatz reaches 90%, FG Wilson starts and share the load.
➢ FG Wilson will take on 35% of its nominal rated capacity and all Hatz units will
continue to operate at minimum 10% loading of its nominal rated capacity.
▪ FG Wilson continues to operate until the load of Hatz decreases to lower
than 151.2kW.

Nighttime operation in Peleliu power system:


▪ To maximize the fuel consumption efficiency, Hatz gensets are manually
stopped after 6 p.m. or when the load is above 168kW in the evening.
▪ At 6 a.m., the system operator can turn on all Hatz gensets and operate them
in Auto mode. FG Wilson will shut down. The system goes back to daytime
operation.
Source: Operations & Maintenance Manual_2018-03-13_Final_Peleliu.pdf

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Preview of Microgrid Design Results
▪ Renewable energy penetration vs. LCOE of simulated cases.
WT is less economical than PV in many cases.

REP 100%
REP 17%
REP 50% is the most economical.

REP 50% REP 75%

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Preview of Microgrid Design Results

Capital Cost

17% REP 50% REP 75% REP 100% REP

Operating Cost

17% REP 50% REP 75% REP 100% REP

LCOE

17% REP 50% REP 75% REP 100% REP

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Summary of Four Cases

Cases Description
• 17% renewable energy penetration (current microgrid in Peleliu)
Case 1 • 164 kW of PV, 160 kW of PV inverter, 7 diesel generators, and a
SMA central controller with communication network

• 50 % renewable energy penetration


Case 2
• This case was found to be the most optimal
Case 3 • 75% renewable penetration
• 100% renewable energy penetration
Case 4
• This is the ultimate goal (Carbon Free)

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Summary of Microgrid Optimal Energy Mix

Case 1 Case 2 Case 3 Case 4


(17%) (50%) (75%) (100%)
PV (kW) 164 564 839 1389
WT (kW) - - - 100
ESS (kWh) - 925 2,200 3,750
ESS Converter (kW) - 200 350 550
Diesel, FGW (kW) 300 300 300 -
Diesel, Hatz (kW) 168 168 168 -
LCOE ($/kWh) 0.353 0.320 0.328 0.408
NPC ($) 5,637,429 5,122,881 5,251,338 6,426,707
Capital cost ($) 562,000 1,884,500 3,117,000 5,318,000
Operating cost ($/year) 392,607 250,502 165,100 85,763
Renewable Energy Penetration (%) 17 50.4 75.2 100
Fuel consumption (L/year) 320,837 182,867 93,949 0
Total emission (ton/year) 845 482 247 0

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Case 1: 17% Penetration (Current State)

▪ Microgrid Configuration
Component Optimal size Units
PV 164 kW
FG Wilson generator 300 kW
HATZ generator 168 (28 kW x 6 units) kW

▪ Cost Summary
Cost Value Units
Levelized cost of energy (LCOE) 0.353 $/kWh
Net present cost (NPC) 5,637,429 $
Capital cost 562,000 $
Operating cost 392,607 $/year
Renewable penetration 17 %
Fuel consumption 320,837 liters/year
Total emission 845 ton/year

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Case 1: 17% Penetration (Current State)

▪ Breakdown on Energy Analysis

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Case 1: 17% Penetration (Current State)
Operating reserve
▪ Power dispatch profile on a certain day
(= 10% of load + 80% of PV)

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Cases 2, 3 and 4
Introducing ESS to store surplus energy from RES
▪ ESS Converter
➢ Grid-parallel mode: The ESS converter needs to be synchronized to the grid
frequency, which is controlled by diesel gensets.
➢ Grid-forming mode: The ESS converter supplies the system frequency when
diesel gensets are off.

Diesel Off

Diesel-ESS-PV system with SMA Hybrid


Controller Output power of Diesel-ESS-PV in a typical day
of SMA Hybrid Controller

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Cases 2, 3 and 4
Introducing ESS to store surplus energy from RES
▪ Coordination algorithm between diesel gensets and ESS:
➢ Diesel generators and ESS must supply the power for the load demand and the
operating reserve.

▪ EMS-based Advanced Coordination Algorithm


➢ Load Following: Using the operating cost values, the least cost option (economic
dispatch) is chosen to meet the load and the required operating reserve. In this
strategy, diesel generators are not used to charge the ESS, which are only charged
by renewable energy.

➢ Cycle Charging: Similar to load following strategy, cycle charging also use
economic dispatch. However, under this strategy, whenever a generator operates,
it runs at its maximum rated capacity (or as close as possible without incurring
excess electricity) and charges the ESS with the excess.

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Cases 2, 3 and 4
Introducing ESS to store surplus energy from RES

▪ Simplified Coordination Algorithm without Energy Management System:


➢ Diesel Off: If the ESS have a grid-forming inverter that can support the grid
voltage and frequency when diesel generators are off, we can turn off the diesel
generators and run the grid only with PV and ESS. SMA Hybrid Controller
provide this Diesel Off control mode.

➢ Diesel Forced-On: In this operation algorithm, the diesel generator is always on


to supply demand power or operating reserve. It uses the droop control method
to maintain voltage and frequency stability in the microgrid

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Case 2: 50% Penetration

▪ Optimal Configuration
Component Optimal size Units
PV 564 kW
ESS 925 kWh
ESS Converter 200 kW
FG Wilson generator 300 kW
HATZ generator 168 kW

▪ Cost Summary
Cost Value Units
Levelized cost of energy (LCOE) 0.320 $/kWh
Net present cost (NPC) 5,122,881 $
Capital cost 1,884,500 $
Operating cost 250,502 $/year
Renewable penetration 50.4 %
Fuel consumption 182,867 liters/year
Total emission 482 ton/year

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Case 2: 50% Penetration

▪ Breakdown on Energy Analysis

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Case 2: 50% Penetration

▪ Power dispatch profile on a certain day

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Case 3: 75% Penetration

▪ Optimal Configuration
Component Optimal size Units
PV 839 kW
ESS 2,200 kWh
ESS Converter 350 kW
FG Wilson generator 300 kW
HATZ generator 168 kW

▪ Cost Summary
Cost Value Units
Levelized cost of energy (LCOE) 0.328 $/kWh
Net present cost (NPC) 5,251,338 $
Capital cost 3,117,000 $
Operating cost 165,100 $/year
Renewable penetration 75.2 %
Fuel consumption 93,949 liters/year
Total emission 247 ton/year

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Case 3: 75% Penetration

▪ Breakdown on Energy Analysis

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Case 3: 75% Penetration

▪ Power dispatch profile on a certain day

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Case 4: 100% Penetration

▪ Optimal Configuration
Component Optimal size Units
PV 1,389 kW
WT 100 kW
ESS 3,750 kWh
ESS Inverter 550 kW

▪ Cost Summary
Cost Value Units
Levelized cost of energy (LCOE) 0.408 $/kWh
Net present cost (NPC) 6,426,707 $
Capital cost 5,318,000 $
Operating cost 85,763 $/year
Renewable penetration 100 %
Fuel consumption 0 liters/year
Total emission 0 ton/year

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Case 4: 100% Penetration

▪ Breakdown on Energy Analysis

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Case 4: 100% Penetration

▪ Power dispatch profile on a certain day

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Considering Future Load Increase

▪ Optimal Energy Mix Considering Load Increase in the Future

Phase 1 Phase 2 Phase 3


Peak demand (kW) 226 239 300 335
(possible year) (2019) (2020) (2025) (2030)
PV (kW) 164 564 734 830
WT (kW) 0 0 0 100
ESS (kWh) 0 925 1250 1740
ESS Converter 0 200 350 400
Renewable energy penetration 17% 50% 54% 62%

Current State (not optimal)

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Effects of Dispatching Algorithm

▪ DER dispatching algorithm affects the economic analysis.

[ Dispatching algorithm comparison for 50% REP ]


Dispatching Operating LCOE Fuel ESS lifetime Emission
algorithm cost ($/kWh) (liters/yr.) (yr.) (kg/year)
($/year)
Load following 250,502 0.320 182,867 12.6 482,000
Cycle charging 271,589 0.337 217,366 10.8 572,397
Diesel off 299,968 0.362 228,279 15 601,134
Diesel forced-on 290,686 0.353 210,207 12 553,543

▪ “Load following” can obtain the lowest LCOE.


▪ “Load following” can be implemented by economic dispatch functions of
Energy Management System.

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