Optimal integration of isolated AC power systems

into DC/AC smart-grids with high penetration of

renewables
José Armando Gastelo-Roque Luiz Fernando Lavado Villa Brian del Mar
FIME / Electrical Engineering School LAAS-CNRS Faculty of Mechanical Engineering
UNPRG / National Polytecnic Institute Université de Toulouse National University of Engineering
Lambayeque, Perú / Mexico City, Mexico Toulouse, France Lima, Perú
jgastelor@unprg.edu.pe l.villa@laas.fr brian.delmar@uni.pe

. Alfred Alsop
Electronic and Electrical Engineering
University of Strathclyde
Glasgow, United Kingdom
alfie.alsop@std.uk

Abstract— There are many isolated electrical systems in
the world that provide power to non-interconnected
community or industry. These systems are generally made
up of LV or MV grids in AC and the energy is generated
from diesel groups, gas turbines, or generator sets. These
systems can be called microgrids since they manage and
distribute energy. With the trend and low costs of renewable
energy, it is very profitable to use photovoltaic or wind
systems to replace the use of fossil fuels in power generation.
This paper proposes a methodology to electrify rural and
isolated locations with the integration of renewable energy
systems in isolated AC thermal systems. Control, protection,
and power distribution/transmission considerations are
being studied to turn AC isolated microgrids into DC/AC
renewable energy smart-grids.
Keywords— smart grids; renewable energy; microgrids;
distributed generation; photovoltaic energy; AI.
I. INTRODUCTION
Access to energy has been identified as a major challenge
and as one of the SDGs of the United Nations and there a
consensus that ‘provision of affordable, reliable, and socially
acceptable energy services’ is a prerequisite for achieving
sustainable development. The locations most likely to be without
access to electricity are rural and remote areas. Generally,
interconnected electrical systems are not covered in these
locations, making supplying power in these non-interconnected
areas not profitable or affordable.
Current solutions to supply energy to isolated and non-
interconnected areas contemplate the implementation of small
photovoltaic systems, the extension of the interconnected grid,
or the implementation of isolated systems using diesel systems.
The extension of the interconnected grid is difficult or cannot
be carried out due to the high costs of supply to remote areas, the
scattered distribution of household and other several reasons.
For photovoltaic or off-grid electrification, the biggest
challenges are poor policies, inadequate regulations, lack of
planning and institutional support, lack of financing for off-grid
entrepreneurs, and affordability for poorer households.
Furthermore, unlike energy from the interconnected grid, small
PV systems do not have the capacity to provide modern energy
services or allow them to carry out productive activities [1].
Due to the above conditions, the most abundant systems in
rural electrification are isolated diesel systems. These systems
can cover a higher energy demand than small photovoltaic
systems, can operate in isolation and have lower CAPEX than a
grid extension.
Although isolated diesel systems can provide more energy,
it uses fossil fuels as an energy source, so the energy it can
produce depends on the fuel available, a critical point in remote
locations.
Furthermore, recent concerns about environmental
protection and sustainable development have led to the critical
need for cleaner energy technology. Some potential solutions
have evolved, including energy conservation through improved
energy efficiency, a reduction in fossil fuels and an alternative
that enables renewable energy to be integrated into isolated
systems: smart grids. [2].
On-grid smart-grids
Isolated renewable
energy smart-grids
Isolated diesel
power systems.
Fig. 1. Proposed solution for a sustainable electrification.
 In the present paper, a methodology is proposed and studied use thermal generation. Internal combustion engines are the
to integrate renewable energy systems in current isolated most common and most technically mature technology used in
thermal systems. The methodology includes 3 implementation the isolated power systems for electrification of rural or far
phases shown in Fig. 1 that must be followed to improve the communities. They are available from small sizes (e.g., 5 kWe
current isolated systems allowing to increase the use of for an small community) to large generators (e.g., 7 MWe) and
renewables, decrease the use of fuels and decrease the cost of they commonly use available fuels such as gasoline, natural gas,
electricity. and diesel [2].
Phase 1 is the current phase the systems are in: isolated A. In Latin-America
electrical systems that use diesel or other fuels to generate Latin America is a region with several developing countries
electricity. Phase 2 includes the integration of renewable that have critical electrification issues. One of the regions with
generation systems, ESS and control systems to integrate the the greatest electrification problems in Latin America is the
current systems into a smart-grid, and phase 3 contemplates the Amazonia area.
future integration of smart-grids into the country's
interconnected system. For example, the National Interconnected System of Peru,
Ecuador and Colombia, which is the system responsible for the
Cities and communities in the Peruvian Amazon have been transmission and distribution of electricity, does not have
taken as a case study, but the methodology is applicable to most coverage in areas corresponding to the Amazonia of the
isolated communities in developing countries. countries, as shown in Fig. 2 [6].
II. RURAL ELECTRIFICATION IN DEVELOPING COUNTRIES
In most of developing countries rural electrification has four
special issues, which are: (i) remoteness and low accessibility to
the communities, (ii) low unitary energy consumption, (iii)
households and communities far from each other and (iv) low
purchasing power of inhabitants.
Due to this, rural electrification projects have low economic
profitability, making them uninteresting to private investments.
On the other hand, these type of projects have a high social
profitability since they promote modernity, education,
communication with the rest of the world, improvements in the
health sector, small industry and make home tasks easier [3].
National energy policies in several countries focus on an
expansion of the interconnected system to reliably provide
electricity for rural communities [4]. However, last years some
energy policies allowed the implementation of small
photovoltaic, wind turbines or micro-hydro
Although many countries increase their rate of electrification
by installing small electrification systems, according to the new
Multi-Level Framework (MTF) developed by the World Bank,
electrification is not just about whether a home is receiving
power service, but whether service is "usable" from the
household perspective.
MTF classifies access to energy in five levels, from Level 1
when lighting and DC charge during 4 hours are provided, to
Level 5 when electricity for very high-power appliances during Fig. 2: Interconnected Electrical Systems of Latin-America. It is observed
that in the Amazonian countries (Perú, Ecuador, Colombia and Brazil), the
minimum 23 hours per day are provided [5]. Amazonia does not have coverage.
III. ISOLATED POWER SYSTEMS
In Perú, the non-interconnected areas correspond to 50.4%
The extension of the interconnected grid as an option of of the country with almost 3 million people and 0.7 million
electrification has failed or cannot be carried out in various households without interconnection to the grid live here. In
countries due to lack of sufficient power generation capacity, Colombia, such zones cover an extension of about 600,000 km2
poor transmission and distribution infrastructure, high costs of (52% of the total area of the country) and comprises about two
supply to remote areas, or simply a lack of affordability for million people, of which 1.2 million have no access to electricity
electricity [1]. [7].
Because small systems cannot supply energy in communities In these countries isolated systems with thermal generation
with large demands. The systems that prevail in rural abound despite the abundant renewable resources in the region.
electrification of remote communities are isolated systems that
 IV. SMART-GRIDS B. Consideration of integration
The concept of smart grids is to essentially combine The location of the communities, the difficult access and the
information and technology with power to optimize difficulty of installing the systems were taken into account.
performance in both the supply and demand side, increase
productivity, enhance efficiency, and stabilize the management
of energy resources.
Smart-grids can be implemented in any interconnected or
isolated grid. Where a microgrid is implemented with control
and smart management systems microgrids convers into isolated
smart-grids.
This type of systems can accelerate electricity access to areas
the central electricity grid cannot reach in the short to medium
term [8].
The usage of renewable energy microgrids or smart-grid to
electrify rural communities in developing countries is
uncommon. There are few documented cases of these type of
systems [10]. On the other hand, thermal microgrids are more
common. Several communities are non-interconnected systems
that operate like a microgrid using diesel or fossil fuels to
generate electricity.
Fig. 3. One of the communities studied, located in the Peruvian Amazonia.
V. METHOD
The method followed to propose this solution was based on C. Economic analysis.
various studies of rural electrification in non-interconnected To calculate CAPEX and the new LCOE for the smart grids,
areas. Communities of the Peruvian Amazonia were studied as the following equations were used:
a case study and solutions for different cases are presented.
The proposed methodology aims to lay the foundations and 𝐶𝐴𝑃𝐸𝑋 = 𝑃𝑉 ∗ 𝑓(𝑘𝑊𝑝) + 𝐸𝑆𝑆 ∗ 𝑔(𝑘𝑊ℎ) + 𝑅! (1)
considerations to follow to integrate renewable energy systems
"#$$
into existing isolated systems in a profitable way and with a 𝐿𝐶𝑂𝐸 = !" (2)
long-term projection of integration to an interconnected ∑(
$& '
($%&)"
electrical system.
()*+
A. Case study 𝑇𝐿𝐶𝐶 = 𝐶𝐴𝑃𝐸𝑋 + ∑1- (-./)"" (3)
Rural communities in the Peruvian Amazon were used as
case studies. These communities are characterized by being 𝑓(𝑘𝑊𝑝) and 𝑔(𝑘𝑊ℎ) are “price per kWp” and “per kWh”
isolated, having difficult access and dispersed rural of the PV system and the ESS. This approach allows
communities. The study used three databases presented in Table considering the scale economy in LCOE calculation. It was
1. used literature [14] and data analysis for real projects in
developing countries.
TABLE 1. DATABASES USED FOR THE STUDY
Parameter Source Year • 𝑃𝑉 : PV power in kWp.
Isolated power Peruvian rural electrification 2018
systems office: Dirección General de • 𝐸𝑆𝑆 : ESS capacity in kWh.
Electrificación Rural [13]
Wind speed at 10m Global Wind Atlas developed 2008-2017 • 𝑄2 : energy output in the year n
height by the Technical University of
Denmark [12] • 𝑑 : discount rate, 4% for this type electrification
Average daily Global RE-data explorer developed by 1998-2016 projects in Peru
Horizontal Irradiation the National Renewable Energy
(GHI) Lab. • 𝑂𝑃𝐸𝑋 : Present value of O&M expenses.

Although the one that meets the following conditions: i)

Number of homes greater than 50, ii) Potential of renewable
resources (GHI of 3.5kWh / m2 / day or 7m / s of wind speed or
microhydro potential) and iii ) Minimum distance to the network
of 2 km. These minimum values were determined during the
previous feasibility study.
 VI. RESULTS
A. Phase 1: Current situation of power systems
These systems are characterized by operating in isolation,
they use conventional energy sources (oil, diesel or gas) or even
small hydroelectric plants, they provide energy intermittently or
for just a few hours a day and the LCOE is high.
Fig. 4: Typical isolated power systems with thermal generation (gensets) in
the Peruvian Amazonia.
Generally, these systems consist of a low-voltage generator
set connected to an AC bus and a medium-voltage step-up
transformer. Then the power is distributed through a medium
voltage network (22.9kV) and derived to the loads through
reducing substations.
Fig. 5: One-line diagram of typical isolated power systems.
B. Phase 2: Integration into smart-grids
In the second phase, renewable energy generation systems,
ESS, control and energy management systems must be
implemented.
All these systems are integrated to form a smart grid that will
supply the community with electrical energy from two sources:
the photovoltaic system and the generator sets (photovoltaic /
diesel hybrids).
In the night hours or when the demand exceeds the energy
that can be produced from the photovoltaic system, the
microgrid must supply the energy from the groups automatically
and seeking to maximize the injection of renewable energy, this
is achieved thanks to the devices and equipment that are part of
the communication and control system.
It is considered a hybrid AC coupling system; this means that
the Primary Grid will be used for the interconnection of both the
Photovoltaic System and the Energy Storage System and the
Generator Sets as show the Fig. 6.
Fig. 6: One-line diagram of the system implemented in the Phase 2. On the left
side it is observed the renewable energy system and the ESS integrated to form
the smart-grid are observed on the left side.
It is observed that the capacitor bank has been removed from
the System because current photovoltaic inverters can inject
capacitive or inductive power to balance the reactive power in
the system.
In addition, when there is a rapid variation in demand, in
radiation or when you want to completely turn off the generator
sets, there will be an energy storage system (Energy Storage
System) of lithium ion (Li-ion) which can be current as back-up,
providing power to the network in conjunction with the groups
or the PV system and as ESS, providing voltage and electrical
parameters to the grid while the photovoltaic system supplies the
power as a whole and all the generator sets are turned off. This
is show in the Fig. 7.

Fig. 7: ESS operating modes with the generator set.
C. Phase 3: Grid integration
Fig. 8: Projection of the integration of the smart grid into the interconnected
system.
VII. CONCLUSION
Current rural electrification projects include small
photovoltaic systems, thermal plants, and grid extension. The
most widely used systems are isolated systems with thermal
generation.
These systems have a higher LCOE or do not provide quality
energy as the systems proposed in this paper.
In this work the current situation of rural electrification
systems and isolated systems was studied. A methodology was
developed to integrate renewable energy systems into these
isolated systems.
The methodology can be applied to reduce current electricity
costs in rural electrification systems and have a long-term
projection for future interconnection to the interconnected
network.
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