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**6** 

*USA* 

**Energy-Efficient Standalone Fossil-Fuel** 

**Renewable Energy Sources** 

*University of Alaska Fairbanks* 

R. W. Wies, R. A. Johnson and A. N. Agrawal

**Based Hybrid Power Systems Employing** 

The cost and efficiency of fossil fuel based electric power and heat production in remote areas is an important topic, such as in Alaska with more than 250 remote villages, and developing countries such as Mexico, with approximately 85,000 villages, each with populations less than 1000 persons. The operating cost of fossil fuel based generators such as diesel electric generators (DEGs) is primarily influenced by the cost associated with the purchase, transportation, and storage of diesel fuel. It is very expensive to transport fuel for DEGs in some villages of Alaska (Denali Commission, 2003) due to the extreme remoteness of the site. Furthermore, there are issues associated with oil spills and storage of fuels (Drouhillet & Shirazi, 1997). As of the year 2010, the average subsidized cost of electricity (COE) for a remote Alaskan community is about 0.53 USD/kWh for the first 500 kWh per residential customer per month. The unsubsidized COEs are as high as 2.00 USD/kWh for some extremely isolated communities (Denali Commission, 2003). An extension of the main grid is not possible for such

Based on energy consumption studies compiled by the US Department of Energy, Alaska spends about 50% more (28.71 USD per million BTU) for electrical energy than the rest of the United States (19.37 USD per million BTU) (EIA, 2002). A Memorandum of Agreement (MOA) was signed between the Denali Commission, the Alaska Energy Authority, and the Regulatory Commission of Alaska to supply reliable and reasonably priced electricity to the rural communities of Alaska (Denali Commission, 2003). With the rising cost of fuel and the need for more efficient systems with higher reliability and lower emissions, integrating renewable energy sources and energy storage devices could prove to be more cost effective solutions for electrical power in remote communities (Fyfe, Powell, Hart, & Ratanasthien, 1993). Consequently, there is great need for energy-efficient standalone smart micro-grid systems in these remote communities that employ renewable power

Distributed power generation systems consisting of two or more generation and storage components, including solar PV arrays, WTGs, battery banks, DEGs, and microhydro, are widely used to supply energy needs. Renewable energy sources such as solar photovoltaics (PV) and wind turbine generators (WTGs) could be used in conjunction with DEGs to supply

communities due to high cost and losses for the transmission lines.

sources and energy storage devices.

**1. Introduction** 

http://en.wikipedia.org/wiki/Cloud\_computing

