Mini-grid hybridization and demand side management on non-interconnected small islands: The case study of Ustica, Italy

Small Mediterranean islands are typically served by mini-grids based on inefficient, polluting and costly diesel generators that provide electricity and freshwater through desalination plants. The study focuses on the case study of the Italian island of Ustica, for which the actual consumption and generation load profiles for 2018 have been used to simulate different scenarios through HOMER Pro software. The scenarios tested the possible integration of renewable energy sources (photovoltaic, small wind turbines) and electrochemical storage in the system, based on a techno-economic, financial, and environmental analysis. In addition to generation-side interventions, demand-side management strategies have been evaluated by considering the desalter as a deferrable load and by introducing energy efficiency measures. Finally, a sensitivity analysis on the most influential parameters (diesel price, discount rate) has been conducted on the base case scenario. The proposed technical solutions are compatible with the environmental and regulatory constraints of the island and lead to reduced emissions and long-term savings. The savings would enable a reduction in the cross-subsidy that the mainland electricity users pay to cover the higher costs incurred for diesel generation in non-interconnected small islands.