Techno-economic optimization of isolate micro-grids including PV and Li-Ion Batteries in the Bolivian context

In Bolivia 44 % of the people living in rural areas do not have reliable access to electric energy. This is due to a combination of unfavourable geography and the lack of economic resources to achieve the necessary infrastructure. In this context, the main goal of this study is to evaluate the economic and technical feasibility of micro-grids including photovoltaic panels (PV), batteries systems and the possible inclusion of diesel generators for off-grid applications. To that aim, a linear optimization model was developed within the Pyomo framework in order to optimize both the installed capacities and dispatch of the PV, battery and diesel sub-systems. The defined objective function is the net present cost. The exogenous inputs of the optimization are the typical demand and solar irradiation of a region of Bolivia in order to achieve results close to real Bolivian systems. Results indicate that due to the high levels of subvention to hydrocarbons, the PV and Li-Ion technology are not yet competitive with a diesel generator for the electrification of rural areas. On the other hand a sensitivity analysis is performed and proves that if the government decide to stop part of the subvention or shared it between conventional and non-conventional sources, the PV becomes competitive and the Li-Ion batteries enter the market around 2020.