Techno-economic assessment and optimization of hybrid renewable energy systems for island electrification: Case studies of Perhentian and Tioman Islands, Malaysia

Abstract

This study presents a techno-economic assessment of hybrid renewable energy systems for Perhentian and Tioman Islands, Malaysia, with the goal of reducing diesel dependency and supporting sustainable electrification. Using HOMER Pro simulation software, various configurations combining solar photovoltaic (PV), wind, and mini-hydropower sources with energy storage systems (ESS) were analyzed. For Perhentian, the optimal configuration consists of a 177.24 MW solar PV system and 23 ESS units, resulting in a Net Present Cost (NPC) of RM51.1 million and a Levelized Cost of Energy (LCOE) of RM0.839/kWh. For Tioman Island, the optimal system integrates 1.19 GW solar PV, 533 kW mini-hydro, and 293 ESS units, achieving an NPC of RM451 million and LCOE of RM0.803/kWh. Comparative analysis with diesel-based systems shows significant cost advantages and environmental benefits in favor of renewable-based configurations. These findings demonstrate the viability of hybrid renewable systems for remote island electrification and offer policy-relevant insights for Malaysia's National Energy Transition Roadmap (NETR) and rural decarbonization efforts.