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Abstract: Indonesia as the largest archipelago in the world has a big challenge to electrify all the inhabited islands due to the geographical dispersion. Microgrid development is one of the most suitable solutions in electrifying the islands while maximizing the utilization of renewable energy sources. In this paper a smart microgrid for a specific island in Indonesia, the Tidung Island, is designed and the challenges and benefits, cost and performance are analyzed.
The designed smart microgrid includes diesel generators, solar PV and battery storage systems. Different design options, without and with peak load shaving are considered and compared against each other. The peak load shaving is implemented using Energy Storage System (ESS) and Demand Response (DR). MATLAB/SIMULINK simulation results are used to investigate and compare the performance of the proposed designs. In addition, a cost and benefit analysis (CBA) is also carried out to give an approximate cost indication of the three different designs.

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