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CANADIAN JOURNAL OF ELECTRICAL AND COMPUTER ENGINEERING, VOL. 43, NO. 4, FALL 2

CANADIAN JOURNAL OF ELECTRICAL AND COMPUTER ENGINEERING, VOL. 43, NO. 4, FALL 2020 315 Analysis of PV-Diesel Hybrid Microgrids for Small Canadian Arctic Communities Analyse de microréseaux hybrides PV-diesel dans les petites communautés arctiques canadiennes Nayeem Ninad , Dave Turcotte, Member, IEEE, and Yves Poissant 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. Résumé—La plupart des communautés éloignées du Canada génèrent leur électricité en tout ou en partie à l’aide de groupes électrogènes au diesel, ce qui se traduit par des coûts d’électricité élevés inhérents au transport du carburant. Une fraction signiﬁcative des ﬁnances des gouvernements ou des communautés locales est allouée au coût de la génération d’électricité. Le déploiement de sources d’énergie renouvelable peut réduire de façon substantielle les coûts associés à la génération d’électricité ainsi que les émissions de gaz à effet de serre (GES) dans ces communautés éloignées. Le potentiel solaire photovoltaïque (PV) annuel pour ces communautés de l’Arctique oscille entre 850 et 1150 kWh/kWc; permettant de couvrir une fraction importante des besoins énergétiques de la communauté avec des systèmes PV. Cet article présente une analyse de l’impact de l’intégration du PV sur la performance annuelle et l’aspect économique du projet, selon différents taux de pénétration de systèmes PV centralisés dans les microréseaux éloignés du Nord. Plus spéciﬁquement, l’article traite de la modélisation d’un système hybride PV-diesel typique en considérant la performance électrique, les émissions et les enjeux économiques pour différentes tailles de générateurs et stratégies de contrôle. La méthodologie présentée dans cet article est apte à quantiﬁer les limites d’intégration d’énergie PV (sans effacement/interruption) ainsi que la faisabilité économique de l’intégration de nouveaux systèmes PV dans les microréseaux actuels de l’Arctique. Index Terms—Arctic, economic analysis, levelized cost of electricity (LCOE), microgrid, photovoltaic (PV), renewable energy. I. INTRODUCTION C ANADA has almost 300 remote communities with a population of more than 225,000 [1]. Most of these remote communities rely mostly on diesel fuel for electricity and heating purposes. These communities are usually char- acterized by high electricity generation costs mostly due to the cost of transporting diesel fuel to remote locations, as some of the communities are only accessible by seasonal Manuscript received January 17, 2019; revised January 10, 2020 and March 17, 2020; accepted April 26, 2020. Date of current version October 27, 2020. This work was supported by the Natural Resources Canada through the Program on Energy Research and Development (PERD). (Corresponding author: Nayeem Ninad.) The authors are with CanmetENERGY (at Varennes), Energy Tech- nology Sector, Natural Resources Canada (NRCan), Varennes, QC J3X 1P7, Canada (e-mail: nayeem.ninad@canada.ca; dave.turcotte@canada.ca; yves.poissant@canada.ca). Associate Editor managing this article’s review: Mohamed Sami Shehata. Digital Object Identiﬁer 10.1109/CJECE.2020.2995750 winter ice roads or by barge or by plane. The electricity rate in the arctic communities can reach as high as 3.19 $/kWh with government subsidy [2], whereas in the rest of Canada, rates vary in the range of 0.07–0.17 $/kWh, depending on the province and the energy resources used [3]. These high costs associated with diesel fuel drain ﬁnancial resources from either Aboriginal bands or governments that could be allocated instead to other priority areas. Diesel engine operation also contributes to air pollution via the emission of greenhouse gases (GHGs), fumes, and particulates. Most remote communities in the North are small, but their situations are not necessarily homogeneous and neither are their community structures and priorities [4]. Therefore, there is no one-size-ﬁts-all solution to improve energy efﬁciency and conservation in these communities. Even small improve- ments in the utilization of the diesel fuel consumption of these remote microgrids can have substantial economic and 0840-8688 © 2020 Crown Copyright Authorized licensed use limited to: University of Gothenburg. Downloaded on December 18,2020 at 12:58:25 UTC from IEEE Xplore. Restrictions apply. 316 CANADIAN JOURNAL OF ELECTRICAL AND COMPUTER ENGINEERING, VOL. 43, NO. 4, FALL 2020 environmental beneﬁts. The use of renewable energy, e.g., pho- tovoltaic (PV) and wind, can substantially reduce the cost of electricity generation and GHG emissions in these remote communities. In recent years, there have been continuous interest and activities in deploying renewable energy in these Canadian northern remote communities [5]–[8]. However, in most cases, lower than expected reductions in fuel consumption have been observed after renewable resources integration due to the improper sizing of renewables or absence of storage and energy management capabilities [5], [9], [10]. With this aim, CanmetENERGY has been conducting research and development (R&D) activities on northern micro- grid systems. The main objective of the R&D work is to optimally design and operate remote PV-diesel hybrid micro- grids. This R&D work will increase utility acceptance, aware- ness, and adoption of improved cost-effective techniques for optimally operating remote microgrids while lowering the risks associated with the integration of signiﬁcant levels of renewable resources. There is limited literature available on the technical fea- sibility and economic aspects of solar energy integration in remote Canadian northern microgrids. Therefore, stakeholders are grappling with the magnitude of capital versus operating expenditures for such microgrid projects, appropriate project discount rates, project timelines, contingencies, the degree of customization required, and so on. A feasibility study on a selected group of arctic communities to predict what the use of renewable energy sources in northern community grids could achieve has been performed in [11]. This study is used to develop business models for diesel generator replacement with new diesel power plant and renewable energy deployment. However, this study was based on high-level resource (solar and wind) data and load data and, therefore, does not have the ﬂexibility to assess similar solutions for different existing diesel microgrids with rapidly varying diesel fuel price and renewable energy deployment costs. It is important to develop a ﬂexible detailed technical and economic model that can be easily applied to different existing diesel-based microgrids to assess the technical and economic viability of renewable energy integration. Such an analysis should incorporate the variety of important parameters that affect the ﬁnal decision of such projects, e.g., diesel fuel cost, renewable energy capital, and O&M cost. In other words, there is a need for a proper design tool from a planning perspective that properly evaluates the technical and economic aspects of such Canadian arctic projects. Small remote communities from the Canadian Arctic Circle have a good solar potential; therefore, PV energy can supply part of the community energy requirements and can reduce diesel fuel consumption and GHG emissions. This region receives most of its solar insolation during the spring and summer months. Their annual PV potential ranges from 850 to 1150 kWh/kWp [12]. Therefore, all the northern territories are currently working to integrate more and more solar energy to supply the community demand [13], and Northwest Territories is leading in the process [14]. As part of the CanmetENERGY R&D activities, this article investigates the impact of PV integration on the system’s annual performance and project economic aspects of small remote northern microgrids for integrating varying levels of centralized PV systems with their existing diesel power plant. The operation of PV-diesel hybrid microgrids depends on a number of stochastic variables, such as solar availability, temperature, and load. The system performance is closely related to the control strategy employed. This article presents the modeling of a typical PV-diesel hybrid system consider- ing the electrical performance, emissions, and economics of various generation sizes and control strategies. The proposed methodology can be applied to the economic assessment of any PV-diesel microgrid project considering both performance and operational aspects as well as capital investments. Hybrid microgrid with a storage system can increase renewable pen- etration, but still the cost of storage for northern microgrids is high [11]. A similar methodology for PV-storage-diesel hybrid microgrid will be presented in a future article. The technical content of this article is divided into four sections. Section II presents the modeling of the PV-diesel hybrid microgrid components. Section III describes the spec- iﬁcations for the small remote arctic microgrid. Section IV addresses the analysis for PV utilization in small uploads/Ingenierie_Lourd/ analysis-of-pv-diesel-hybrid-microgrids-for-small-canadian-arctic-communities.pdf