Analysis of PV-Diesel Hybrid Microgrids for Small Canadian Arctic Communities

Abstract

Most Canadian remote communities are supplied electricity partly or wholly generated by diesel generators, which results in high electricity costs mostly due to the cost of transporting fuel to the remote locations. A large portion of the financial budget from the government or local community is allocated to cover the cost of diesel electricity generation. Renewable energy integration can substantially reduce the cost of electricity generation and greenhouse gases (GHGs) emissions in these remote communities. The annual solar photovoltaic (PV) potential for these northern arctic communities ranges from 850 to 1150 kWh/kWp; therefore, a significant portion of the community energy requirement can be supplied by the PV system. This article presents the impact of PV integration on the system’s annual performance and project economic aspects of small remote northern microgrids for integrating varying penetration levels of centralized PV systems. The modeling of a typical PV-diesel hybrid system considering the electrical performance, emissions, and economics of various generation sizes and control strategies has been addressed. The methodology presented in this article can help quantify the PV energy integration limit (without any spill/curtailment) and economic feasibility of new PV system integration in current arctic microgrids.