Solar hybrid power systems

Solar hybrid power systems are hybrid power systems that combine solar power
from a photovoltaic system with another power generating energy source.[1][2] A
common type is a photovoltaic diesel hybrid system,[3][4] combining
photovoltaics (PV) and diesel generators, or diesel gensets, as PV has hardly any
marginal cost and is treated with priority on the grid. The diesel gensets are used to
constantly fill in the gap between the present load and the actual generated power
by the PV system.[2]

As solar energy is fluctuating, and the generation capacity of the diesel genesets is
limited to a certain range, it is often a viable option to include battery storage in
order to optimize solar's contribution to the overall generation of the hybrid
system.[2][5]

The best business cases for diesel reduction with solar and wind energy can
normally be found in remote locations because these sites are often not connected
to the grid and transport of diesel over long distances is expensive.[1] Many of
these applications can be found in the mining sector [6] and on islands [2][7][8]

In 2015, a case-study conducted in seven countries concluded that in all cases

generating costs can be reduced by hybridising mini-grids and isolated grids.
However, financing costs for diesel-powered electricity grids with solar
photovoltaics are crucial and largely depend on the ownership structure of the
power plant. While cost reductions for state-owned utilities can be significant, the
study also identified short-term economic benefits to be insignificant or even
negative for non-public utilities, such as independent power producers, given
historical costs at the time of the study.[9][10]

Other solar hybrids include solar-wind systems. The combination of wind and solar
has the advantage that the two sources complement each other because the peak
operating times for each system occur at different times of the day and year. The
power generation of such a hybrid system is more constant and fluctuates less than
each of the two component subsystems.[11]