Cost minimization for fully renewable electricity systems : A Mauritius case study

• Climate change is the world's most prominent environmental problem, and fossil-fuel combustion is its primary cause. To set carbon reduction goals, policy makers require information on feasibility and cost of renewable energy systems. In this study, we describe an economic approach to modeling a national electricity system based entirely on renewable sources, using the island-nation of Mauritius as a case study. Many renewable electricity studies consider levelized costs of electricity (LCOE), which represents average cost of electricity, but cost minimization requires equalizing marginal costs. With variable sources, marginal costs change over time. Minimizing cost thus requires a model incorporating variability at high time resolution (daily or hourly), with the objective of minimizing the levelized cost of electricity for an entire electricity system (LCOES). In Mauritius, the minimum-cost renewable electricity portfolio includes roughly equal proportions of solar, wind, and biomass electricity, along with electricity storage. Policy issues include setting renewable energy targets, selecting policy instruments to incentivize optimum renewable energy portfolios, incorporating energy efficiency, determining appropriate discount rates, ensuring land availability, and accounting for non-cost considerations. Many of the economic and policy issues identified apply universally, and methods demonstrated in this study could be used anywhere in the world.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Naturresursteknik -- Energisystem (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Environmental Engineering -- Energy Systems (hsv//eng)

Nyckelord

Climate change

Decarbonization

Energy storage

OSeMOSYS

Renewable energy economics

Economic analysis

Energy efficiency

Fossil fuels

Renewable energy resources

Environmental problems

Fossil fuel combustion

Levelized cost of electricities

National electricity system

Renewable electricity

Renewable energies

Renewable energy systems

Electric energy storage

alternative energy

cost analysis

electricity supply

energy policy

modeling

policy analysis

renewable resource

Mascarene Islands

Mauritius

Energy Technology

Energiteknik

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