| Summary: | Most inhabited islands in Indonesia are powered by expensively known diesel generators and isolated from the primary grid due to either geographical or economic reasons. Meanwhile, the diesel generator can be combined with a photovoltaic (PV) system and Battery Energy Storage (BES) system to form a hybrid power generation system to reduce the energy cost and increase renewable energy penetration. For this, proper sizing of each power generation component is required, one of which is influenced by the applied control strategy. This paper proposes an optimal BES dispatch (OBD) control strategy that optimizes the power generation components’ sizing. The method examines the shortcomings of the other popular control strategies, such as load following, cycle charging, or combination. The optimization objectives are to minimize the Levelized Cost of Energy (LCOE) and maximize the renewable energy (RE) penetration, which can be achieved by prioritizing the BES to supply the load over other available generations and charge the BES every time the generator operates. The proposed method is implemented at two different systems with different load profiles. As a result, the proposed control strategy provides lower LCOE while maintaining higher RE penetration than the other control strategies in both locations.
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