Energy-Efficient Standalone Fossil-Fuel Based Hybrid Power Systems Employing Renewable Energy Sources

The cost and efficiency of fossil fuel based electric power and heat production in remote areas is an important topic, such as in Alaska with more than 250 remote villages, and developing countries such as Mexico, with approximately 85,000 villages, each with populations less than 1000 persons. The operating cost of fossil fuel based generators such as diesel electric generators (DEGs) is primarily influenced by the cost associated with the purchase, transportation, and storage of diesel fuel. It is very expensive to transport fuel for DEGs in some villages of Alaska (Denali Commission, 2003) due to the extreme remoteness of the site. Furthermore, there are issues associated with oil spills and storage of fuels (Drouhillet & Shirazi, 1997). As of the year 2010, the average subsidized cost of electricity (COE) for a remote Alaskan community is about 0.53 USD/kWh for the first 500 kWh per residential customer per month. The unsubsidized COEs are as high as 2.00 USD/kWh for some extremely isolated communities (Denali Commission, 2003). An extension of the main grid is not possible for such communities due to high cost and losses for the transmission lines.