Optimizing Sustainable Energy Transitions in Small Isolated Grids Using Multi-Criteria Approaches

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Abstract
The ambitious goals of decarbonization of the European economy by mid-century pose significant challenges, especially when relying heavily on resources whose nature is inherently intermittent, specifically wind and solar energy. The situation is even more serious in isolated regions with limited connections to larger power grids. Using EnergyPLAN software, three scenarios for 2023 were modeled: a diesel-only system, the current hybrid renewable system, and an optimized scenario. This paper evaluates the performance of the usual generation system existing in isolated systems, based on fossil fuels, and proposes an optimized system considering both the cost of the system and the penalties for emissions. All this is applied to the case study of the island of El Hierro, but the findings are applicable to any location with similar characteristics. This system is projected to reduce emissions by over 75% and cut costs by one-third compared to the current configuration. A system has been proposed that preserves the economic viability and reliability of diesel-based systems while achieving low emission levels. This is accomplished primarily through the use of renewable energy generation, supported by pumped hydro storage. The approach is specifically designed for remote regions with small isolated grids, where reliability is critical. Importantly, the system relies on appropriately sized renewable installations, avoiding oversizing, which—although it could further reduce emissions—would lead to significant energy surpluses and require even more efficient storage solutions. This emphasizes the importance of implementing high emission penalties as a key policy measure to phase out fossil fuel generation.

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