Techno-economic study of off-grid hybrid photovoltaic/battery and photovoltaic/battery/fuel cell power systems in Kunming,China

The objective of this study is to evaluate the technical and economic feasibility of stand-alone hybrid photovoltaic (PV)/battery and PV/battery/fuel cell (FC) power systems for a community center comprising 100 households in Kunming by using the Hybrid Optimization Model for Electric Renewable (HOMER) software. HOMER is used to define the optimum sizing and techno-economic feasibility of the system equipment based on the geographical and meteorological data of the study region. In this study, different hybrid power systems are analyzed to select the optimum energy system while considering total net present cost (NPC) and levelized cost of energy (COE). The results showed that the optimal hybrid PV/battery system comprised 500 kW PV modules, 1200 7.6-kWh battery units, and 500 kW power converters. The proposed system has an initial cost of $6,670,000, an annual operating cost of $82,763/yr, a total NPC of $7,727,992, and a levelized COE of $1.536/kWh. While the PV/battery/FC power system is possible, the cost increases were due to the investment cost of the FC system. The optimal PV/battery/FC system has an initial cost of $6,763,000, an annual operating cost of $82,312/yr, a total NPC of $7,815,223, and a levelized COE of $1.553/kWh.     

Optimal energy management system for stand-alone wind turbine/photovoltaic/hydrogen/battery hybrid system with supervisory control based on fuzzy logic

This paper presents a novel hourly energy management system (EMS) for a stand-alone hybrid renewable energy system (HRES). The HRES is composed of a wind turbine (WT) and photovoltaic (PV) solar panels as primary energy sources, and two energy storage systems (ESS), which are a hydrogen subsystem and a battery. The WT and PV panels are made to work at maximum power point, whereas the battery and the hydrogen subsystem, which is composed of fuel cell (FC), electrolyzer and hydrogen storage tank, act as support and storage system. The EMS uses a fuzzy logic control to satisfy the energy demanded by the load and maintain the state-of-charge (SOC) of the battery and the hydrogen tank level between certain target margins, while trying to optimize the utilization cost and lifetime of the ESS. Commercial available components and an expected life of the HRES of 25 years were considered in this study. Simulation results show that the proposed control meets the objectives established for the EMS of the HRES, and achieves a total cost saving of 13% over other simpler EMS based on control states presented in this paper.     

Sizing optimization,dynamic modeling and energy management strategies of a stand-alone PV/hydrogen/battery-based hybrid system

This paper presents a sizing method and different control strategies for the suitable energy management of a stand-alone hybrid system based on photovoltaic (PV) solar panels, hydrogen subsystem and battery. The battery and hydrogen subsystem, which is composed of fuel cell (FC), electrolyzer and hydrogen storage tank, act as energy storage and support system. In order to efficiently utilize the energy sources integrated in the hybrid system, an appropriate sizing is necessary. In this paper, a new sizing method based on Simulink Design Optimization (SDO) of MATLAB was used to perform a technical optimization of the hybrid system components. An analysis cost has been also performed, in that the configuration under study has been compared with those integrating only batteries and only hydrogen system. The dynamic model of the designed hybrid system is detailed in this paper. The models, implemented in MATLAB-Simulink environment, have been designed from commercially available components. Three control strategies based on operating modes and combining technical-economic aspects are considered for the energy management of the hybrid system. They have been designed, primarily, to satisfy the load power demand and, secondarily, to maintain a certain level at the hydrogen tank (hydrogen energy reserve), and at the state of charge (SOC) of the battery bank to extend its life, taking into account also technical-economic analysis. Dynamic simulations were performed to evaluate the configuration, sizing and control strategies for the energy management of the hybrid system under study in this work. Simulation results show that the proposed hybrid system with the presented controls is able to provide the energy demanded by the loads, while maintaining a certain energy reserve in the storage sources.     

Techno-economic analysis for rustic electrification in Egypt using multi-source renewable energy based on PV/ wind/ FC

A technical-economic investigation based on mathematical modeling, simulation, and optimization approach is employed in this research to assemble an island combined renewable energy systems (CRES) consists of solar PV/Wind/Fuel Cell (FC) of a small-scale countryside area in Egypt. The intent of the proposed island CRES is to boost the share of renewable energy in the energy mix and to study the possibility of using fuel cells as a storage/backup system instead of using battery banks.Three combinations of CRES are presented in this research to select the most optimum one. The combinations of the hybrid systems are PV/FC, PV/WT/FC, and WT/FC. The performance and the total cost of the suggested CRES were optimized using Firefly Algorithm (FA). The results obtained from the FA are compared with those obtained from the Shuffled Frog Leaping Algorithm (SFLA) and the particle swarm optimization (PSO).The selected case study area with latitude and longitude of (29.0214 N, 30.8714 E) is identified for economic viability in this work.The simulation outcomes show that the solar PV/Wind/Fuel Cell combination incorporated with an electrolyzer for hydrogen production grants the excellent performance. The proposed system is economically viable with a levelized cost of energy of 0.47 $/kWh.     

Dynamic modelling and multi-objective optimization of off-grid hybrid energy systems by using battery or hydrogen storage for different climates

The energy storage problem is an essential issue in renewable energy-based power systems. A comprehensive study is performed to evaluate off-grid hybrid renewable energy systems with a battery bank or a hydrogen system employed as the energy storage option. Dynamic modelling is proposed to see daily and seasonally changes in the system. The economic feasibility of the system and its environmental impacts are investigated in three locations. A multi-objective optimization method based on the Taguchi approach is employed to minimize both levelized cost of energy and the CO₂ emissions. Various weight factors were assigned to understand the response of different optimization targets. The results highlight that the hybridization of energy resources allows the annual emissions to be cut by 68–78% for battery storage, 84–90% for hydrogen storage, compared to a diesel-only system. Despite having higher costs, the systems with hydrogen storage can store energy in the long term; therefore, they have lower CO₂ emissions.     

Hydrogen-based systems for integration of renewable energy in power systems: Achievements and perspectives

This paper is a critical review of selected real-world energy storage systems based on hydrogen, ranging from lab-scale systems to full-scale systems in continuous operation. 15 projects are presented with a critical overview of their concept and performance. A review of research related to power electronics, control systems and energy management strategies has been added to integrate the findings with outlooks usually described in separate literature. Results show that while hydrogen energy storage systems are technically feasible, they still require large cost reductions to become commercially attractive. A challenge that affects the cost per unit of energy is the low energy efficiency of some of the system components in real-world operating conditions. Due to losses in the conversion and storage processes, hydrogen energy storage systems lose anywhere between 60 and 85% of the incoming electricity with current technology. However, there are currently very few alternatives for long-term storage of electricity in power systems so the interest in hydrogen for this application remains high from both industry and academia. Additionally, it is expected that the share of intermittent renewable energy in power systems will increase in the coming decades. This could lead to technology development and cost reductions within hydrogen technology if this technology is needed to store excess renewable energy. Results from the reviewed projects indicate that the best solution from a technical viewpoint consists in hybrid systems where hydrogen is combined with short-term energy storage technologies like batteries and supercapacitors. In these hybrid systems the advantages with each storage technology can be fully exploited to maximize efficiency if the system is specifically tailored to the given situation. The disadvantage is that this will obviously increase the complexity and total cost of the energy system. Therefore, control systems and energy management strategies are important factors to achieve optimal results, both in terms of efficiency and cost. By considering the reviewed projects and evaluating operation modes and control systems, new hybrid energy systems could be tailored to fit each situation and to reduce energy losses.     

Size optimization of a hybrid photovoltaic/fuel cell grid connected power system including hydrogen storage

This paper describes the size optimization of a hybrid photovoltaic/fuel cell grid linked power system including hydrogen storage. The overall objective is the optimal sizing of a hybrid power system to satisfy the load demand of a university laboratory with an unreliable grid, with low energy cost and minimal carbon emissions. The aim is to shift from grid linked diesel power system to a clean and sustainable energy system. The optimum design architecture was established by adopting the energy-balance methods of HOMER (hybrid optimization model for electric renewables). Analysis of hourly simulations was performed to decide the optimal size, cost and performance of the hybrid system, using 22-years monthly averaged solar radiation data collected for Ambrose Alli University, Ekpoma (Lat. 6°44.3ʹN, Long. 6°4.8ʹE). The results showed that a hybrid system comprising 54.7 kW photovoltaic array, 7 kW fuel cell system, 14 kW power inverter and 3 kW electrolyzer with 8 kg hydrogen storage tank can sustainably augment the erratic grid with a very high renewable fraction of 96.7% at $0.0418/kWh. When compared with the conventional usage of grid/diesel generator system; energy cost saving of more than 88% and a return on investment of 41.3% with present worth of $308,965 can be derived in less than 3 years. The application of the optimally sized hybrid system would possibly help mitigate the rural-to-urban drift and resolve the electricity problems hindering the economic growth in Nigeria. Moreover, the hybrid system can alleviate CO₂ emissions from other power generation sources to make the environment cleaner and more eco-friendly.     

Performance analysis of various hybrid renewable energy systems using battery,hydrogen, and pumped hydro‐based storage units

The aim of this research is to analyze the techno‐economic performance of hybrid renewable energy system (HRES) using batteries, pumped hydro‐based, and hydrogen‐based storage units at Sharurah, Saudi Arabia. The simulations and optimization process are carried out for nine HRES scenarios to determine the optimum sizes of components for each scenario. The optimal sizing of components for each HRES scenario is determined based on the net present cost (NPC) optimization criterion. All of the nine optimized HRES scenarios are then evaluated based on NPC, levelized cost of energy, payback period, CO₂ emissions, excess electricity, and renewable energy fraction. The simulation results show that the photovoltaic (PV)‐diesel‐battery scenario is economically the most viable system with the NPC of US$2.70 million and levelized cost of energy of US$0.178/kWh. Conversely, PV‐diesel‐fuel cell system is proved to be economically the least feasible system. Moreover, the wind‐diesel‐fuel cell is the most economical scenario in the hydrogen‐based storage category. PV‐wind‐diesel‐pumped hydro scenario has the highest renewable energy fraction of 89.8%. PV‐wind‐diesel‐pumped hydro scenario is the most environment‐friendly system, with an 89% reduction in CO₂ emissions compared with the base‐case diesel only scenario. Overall, the systems with battery and pumped hydro storage options have shown better techno‐economic performance compared with the systems with hydrogen‐based storage.     

Techno-econo-environmental optimal operation of grid-wind-solar electricity generation with hydrogen storage system for domestic scale,case study in Chad

The rapidly growing of population in the developing countries and their lack of access to electricity, especially in the remote or rural areas, is causing huge challenges for on energy production. Energy is an enabler and a reliable energy supply is critical to sustainable socio-economic development for any nation. Most of Chad's people live in villages with no particular power supply system. Exploiting renewable energies is the only means of fostering development and improving people's welfare. This paper attempts at proposing an energy profile and storage model for Chad in vast remote towns. The paper addresses the key energy gap that is hindering on the development of such systems, it models and assess the potential on electricity generation and using hydrogen as surplus power storage system. A techno-econo-environmental survey on a solar-wind hybrid system in 25 towns in Chad is undertaken using NASA data and HOMER Software. Several hybrid scenarios of energy production and storage is analyzed. The results showed that in the electricity generation scenario, the average total NPC for the studied stations was $ 48164 and the average LCOE was $0.573. The lowest LCOE was related to Aouzou station with 0.507 $/kWh and the highest LCOE was obtained for Bol station with 0.604 $/kWh. In the simultaneous electricity and hydrogen generation scenario, the cheapest hydrogen ($4.695/kg) was produced in the “Grid” scenario, which was the same for all of the stations, with a total NPC of $2413770. The most expensive hydrogen ($4.707/kg) was generated in the “Grid-Wind” scenario and Bol stations with a total NPC of $2420186. The paper develops cost effective models for all hybrid systems combination for both electricity and hydrogen generation across Chad. These findings could help policy makers, investors and other developmental agencies make informed choices on energy access for sustainable development for rural communities in Sub Saharan Africa.     

Utilization of renewable hybrid energy for refueling station in Al-Kharj,Saudi Arabia

Hydrogen is one of the energy carriers that can be produced using different techniques. Combining multiple energy sources can enhance hydrogen production and meet other electrical demands. The hybrid arrangement allows the produced hydrogen to be stored and used when the electrical energy sources are not adequate. In this study, utilizing the meteorological data was investigated using HOMER (Hybrid Optimization of Multiple Energy Resources) software for the optimal solution. The results demonstrated that the “best-optimized system has 270 kW of photovoltaic (PV), 1 unit of 300 kW of wind turbine (WT), 500 kW of electrolyzer, 100 kg/L of the hydrogen tank, 70 units of 1 kWh lithium-ion battery, and 472 kW of the converter. The selected hybrid energy system has the lowest Levelized cost of energy (LCOE), Levelized cost of hydrogen (LCOH), and net present cost (NPC) of $/kg 0.6208, $/kg 9.34, and $ 484,360.00 respectively which judged the system to be the best choice for the proposed hydrogen project in AI-Kharj. This investigation will help stakeholders and policymakers optimize hybrid energy systems that economically meet the hydrogen production and refueling station demands of the AI-Kharj community.     

Design and feasibility analysis of hydrogen based hybrid energy system: A case study

Renewable energy sources can produce less carbon than conventional energy sources, which has the significant disadvantage of being intermittent, which triggers a stable storage system. This work focuses on the issues of hydrogen energy storage which can solve the fluctuating output power problem by simulating results on HOMER software. Three combinations of the Solar-Hydrogen system, Wind-Hydrogen system, and Solar-Wind-Hydrogen hybrid system are presented to find the most optimum one. Levelized Cost of Energy (LCOE) for Hybrid System has proven to be the most economical while the Wind Turbine cost 1.476% higher and the Solar Photovoltaics (PV) System costs 108.03% more. LCOE for Hybrid Model is $0.3387, while for Solar System it is $ 0.7046 and for Wind System it is $ 0.3437. These results show that a hydrogen-based energy storage system is viable for the considered.     

Modeling,analysis and control system development for the Italian hydrogen house

This paper provides an analysis of the “Hydrogen from the Sun” project at the “Ecological House” in northern Italy. The modeling and analysis work is being performed in conjunction with the International Energy Agency Hydrogen Implementing Agreement Annex 18: Integrated Systems Evaluation. A customized library of Matlab/Simulink component models is used to simulate the system and evaluate the hydrogen economics and energy production efficiencies. Two control algorithms are developed for the house using a fuzzy logic and an adaptive control strategy. The economic and steady state effects of these two strategies are compared as are the energy sources used to supply the energy demand of the house. The hydrogen production system consists of an electrolyzer, a photo-voltaic collector, and a battery, linked to both a metal hydride and high pressure gas storage system. The hydrogen supplies a fuel cell, which powers a residential estate. The analysis shows the contribution of the different system components to the overall efficiency and cost of hydrogen. However, the control systems presented also have a significant effect on the hydrogen and electricity cost. Reduction of these costs and an increase in system efficiency require optimal use of the hydrogen stored, as well as the optimized distribution of power supply from the generating components. The analysis shows the initial cost of hydrogen to be 9.36 $/kg, with electricity produced at 0.65 $/kWh using a fuzzy logic control system at an electrical efficiency of 50% (of the full hydrogen house system), based on the lower heating value of hydrogen. The result of using an active control strategy is presented.     

The potential for integration of hydrogen for complete energy self-sufficiency in residential buildings with photovoltaic and battery storage systems

This paper presents an analysis of energy production in a pilot building located in Slovenia, which is a typical residential house with an installed photovoltaic (PV) system and pilot battery storage system. Energy management system gathers data from smart meters every 15 min. As the pilot building location is in central Europe, complete energy self-sufficiency cannot be provided. The most problematic period of energy production with photovoltaic systems is winter. Solar radiation during the winter is much lower than in the summer and sometimes snow covers photovoltaic panels and disables energy production. Energy production and energy consumption are analyzed for one year. This study shows that complete self-sufficiency can be achieved by supplementing photovoltaic systems with hydrogen fuel cells. The amount of hydrogen, which would suffice for complete self-sufficiency for the whole period, is calculated according to the analyzed data. A synergy between photovoltaic system and hydrogen fuel cells is a step forward to complete self-sufficiency with renewable energy sources. The share of self-sufficiency of a hybrid PV fuel cell system would be 62.13%, meaning that there is no possibility for complete self-sufficiency from the pilot system. The shortage of hydrogen is 144.24 kg for one year and for achieving complete energy self-sufficiency, PV system should be bigger. A hybrid system with photovoltaic system, battery storage system and hydrogen fuel cells can be a solution for complete self-sufficiency. From an economic point of view, such systems are accessible for commercial use. The initial investment is relatively high, because of the high cost of the hydrogen storage tank.     

Optimisation of solar-hydrogen power system for household applications

A numerical method was developed for optimising solar–hydrogen energy system to supply renewable energy for typical household connected with the grid. The considered case study involved household located in Diyala Governorate, Iraq. The solar–hydrogen energy system was designed to meet the desired electrical load and increase the renewable energy fraction using optimum fuel cell capacity. The simulation process was conducted by MATLAB based on the experimental data for electrical load, solar radiation and ambient temperature at a 1-min time-step resolution. Results demonstrated that the optimum fuel cell capacity was approximately 2.25 kW at 1.8 kW photovoltaic power system based on the average of the daily energy consumption of 6.8 kWh. The yearly renewable energy fraction increased from 31.82% to 95.82% due to the integration of the photovoltaic system with a 2.25 kW fuel cell used as a robust energy storage unit. In addition, the energy supply, which is the economic aspect for the optimum system, levelised electricity cost by approximately $0.195/kWh. The obtained results showed that the proposed numerical analysis methodology offers a distinctive property that can be used effectively to optimise hybrid renewable energy systems.     

A novel multicriteria sustainability investigation of energy storage systems

Affordable, clean, efficient, flexible, and reliable energy storage is an important component of sustainable energy systems. There are several studies in the literature concentrating on improving the sustainability performance of energy storage systems from economic and technical perspectives. However, a comprehensive performance investigation of energy storage systems that take economic, environmental, social, and technical criteria into account is still needed. For that reason, in the present study, it is aimed to perform a complete assessment and analysis of the sustainability of energy storage systems for residential applications in communities and cities. Pumped hydro, conventional batteries, high‐temperature batteries, flow batteries, and hydrogen are the selected energy storage systems. In order to handle the vagueness and ambiguity during the assessment and to eliminate the perceived hesitancy in the decision makers' preferences, an innovative method, a hybrid hesitant fuzzy multicriteria decision‐making (MCDM) methodology composed of hesitant fuzzy analytic hierarchy process (HFAHP) and hesitant fuzzy technique for order preference by similarity to ideal solution (HFTOPSIS), is utilized to assess the sustainability of the selected systems. In this study, four different performance criteria: economic (power cost and energy cost), environmental (pollutant emissions, area requirement, wastewater quality, and solid waste production), social (safety, accessibility, ease of use, and public acceptance), and technical (efficiency, storage capacity, cycling limit, and performance degradation) are taken into consideration. The performance evaluation results indicate that technical performance has the highest influence and social performance has the lowest influence when evaluating the sustainability of the selected energy storage systems. And hydrogen has the highest sustainability performance compared with the other selected energy storage options.     

Techno-economic analysis of RES & hydrogen technologies integration in remote island power system

The main objective of the present study is the integration of hydrogen technologies as an energy storage medium in a hybrid power system. The existing power system of the island of Milos, which is based on fossil fuel generators and a small wind park, is assessed in the context of this paper. System level simulation results, from both technical and economic point of view, are presented for the currently existing and the proposed island's hybrid power system. The latter integrates a higher number of wind turbines and hydrogen technologies as energy storage medium, and the two system architectures are being compared taking into account not only technical and economic parameters but also Green House – Gas (GHG) emissions, fossil fuels consumption and Renewable Energy Sources (RES) penetration increase. Moreover, a sensitivity analysis has been performed in order to determine the contribution of hydrogen technologies equipment costs; with the cost of energy produced (COE) being the critical parameter. Results show that COE for the proposed power system is higher than the existing one, but on the other hand GHG emissions and fossil fuel consumption are significantly reduced. In addition, RES penetration increases dramatically and the sensitivity analysis indicates that a further reduction in hydrogen technologies equipment and subsidy on wind turbine costs would make RES & Hydrogen-based systems economically competitive to the existing power system of the island.     

Unit sizing and cost analysis of stand-alone hybrid wind/PV/fuel cell power generation systems

An economic evaluation of a hybrid wind/photovoltaic/fuel cell (FC) generation system for a typical home in the Pacific Northwest is performed. In this configuration the combination of a FC stack, an electrolyser, and hydrogen storage tanks is used as the energy storage system. This system is compared to a traditional hybrid energy system with battery storage. A computer program has been developed to size system components in order to match the load of the site in the most cost effective way. A cost of electricity, an overall system cost, and a break-even distance analysis are also calculated for each configuration. The study was performed using a graphical user interface programmed in MATLAB.     

Determination of the optimum hybrid renewable power generating systems for Kavakli campus of Kirklareli University,Turkey

This study is to search for possibilities of supplying the load demand of Kavakli campus of Kirklareli University with solar energy and the fuel cell power generating system (electrolyzer/hydrogen tank/fuel cell) by using the HOMER software due to the fact that hybrid power systems with renewables can significantly reduce emissions which are caused by utilization of non-renewable power sources. In this study, various hybrid systems will be examined and compared among themselves considering cost of energy (COE), renewable fraction, total net present cost (NPC) and hydrogen production. Additionally, this study will seek whether a fuel cell can be integrated into the hybrid systems. According to the study results, the grid connected systems appear cost-effective as expected. Although the grid-connected photovoltaic (PV) hybrid system has the lowest COE and NPC, the grid-connected PV/fuel cell hybrid system with COE, 0.294$/kWh has a slightly higher cost than the optimum one. It is strongly believed that this system may be chosen because it is a cleaner system and its emissions are fairly low.     

Technico-economic analysis of off grid solar PV/Fuel cell energy system for residential community in desert region

A technico-economic analysis based on integrated modeling, simulation, and optimization approach is used in this study to design an off grid hybrid solar PV/Fuel Cell power system. The main objective is to optimize the design and develop dispatch control strategies of the standalone hybrid renewable power system to meet the desired electric load of a residential community located in a desert region. The effects of temperature and dust accumulation on the solar PV panels on the design and performance of the hybrid power system in a desert region is investigated. The goal of the proposed off-grid hybrid renewable energy system is to increase the penetration of renewable energy in the energy mix, reduce the greenhouse gas emissions from fossil fuel combustion, and lower the cost of energy from the power systems. Simulation, modeling, optimization and dispatch control strategies were used in this study to determine the performance and the cost of the proposed hybrid renewable power system. The simulation results show that the distributed power generation using solar PV and Fuel Cell energy systems integrated with an electrolyzer for hydrogen production and using cycle charging dispatch control strategy (the fuel cell will operate to meet the AC primary load and the surplus of electrical power is used to run the electrolyzer) offers the best performance. The hybrid power system was designed to meet the energy demand of 4500 kWh/day of the residential community (150 houses). The total power production from the distributed hybrid energy system was 52% from the solar PV, and 48% from the fuel cell. From the total electricity generated from the photovoltaic hydrogen fuel cell hybrid system, 80.70% is used to meet all the AC load of the residential community with negligible unmet AC primary load (0.08%), 14.08% is the input DC power for the electrolyzer for hydrogen production, 3.30% are the losses in the DC/AC inverter, and 1.84% is the excess power (dumped energy). The proposed off-grid hybrid renewable power system has 40.2% renewable fraction, is economically viable with a levelized cost of energy of 145 $/MWh and is environmentally friendly (zero carbon dioxide emissions during the electricity generation from the solar PV and Fuel Cell hybrid power system).     

Impact of battery storage on economics of hybrid wind‐diesel power systems in commercial applications in hot regions

Integration of wind machines and battery storage with the diesel plants is pursued widely to reduce dependence on fossil fuels. The aim of this study is to assess the impact of battery storage on the economics of hybrid wind‐diesel power systems in commercial applications by analyzing wind‐speed data of Dhahran, East‐Coast, Kingdom of Saudi Arabia (K.S.A.). The annual load of a typical commercial building is 620,000 kWh. The monthly average wind speeds range from 3.3 to 5.6 m/s. The hybrid systems simulated consist of different combinations of 100‐kW commercial wind machines (CWMs) supplemented with battery storage and diesel generators. National Renewable Energy Laboratory's (NREL's) (HOMER Energy's) Hybrid Optimization Model for Electric Renewables (HOMER) software has been employed to perform the economic analysis. The simulation results indicate that for a hybrid system comprising of 100‐kW wind capacity together with 175‐kW diesel system and a battery storage of 4 h of autonomy (i.e. 4 h of average load), the wind penetration (at 37‐m hub height, with 0% annual capacity shortage) is 25%. The cost of generating energy (COE, $/kWh) from this hybrid wind–battery–diesel system has been found to be 0.139 $/kWh (assuming diesel fuel price of 0.1$/L). The investigation examines the effect of wind/battery penetration on: COE, operational hours of diesel gensets. Emphasis has also been placed on un‐met load, excess electricity, fuel savings and reduction in carbon emissions (for wind–diesel without battery storage, wind–diesel with storage, as compared to diesel‐only situation), cost of wind–battery–diesel systems, COE of different hybrid systems, etc. The study addresses benefits of incorporation of short‐term battery storage (in wind–diesel systems) in terms of fuel savings, diesel operation time, carbon emissions, and excess energy. The percentage fuel savings by using above hybrid system is 27% as compared to diesel‐only situation Copyright © 2012 John Wiley & Sons, Ltd.