Distributed Generation in an isolated grid: Methodology of case study for Lesvos – Greece

The purpose of this article is to evaluate the economic effects of Distributed Generation (DG) in isolated grids and in particular Lesvos island in Greece. DG penetration is expected to rise in the following years since the island’s wind potential is still not exploited at a satisfying level. The necessity to replace the existing oil-fired power plant together with the need to cut down on greenhouse gases makes DG, and in particular wind turbines quite a promising technology. The present study with the use of specific software simulates the current electricity production for a whole year looking at its technical and economic performance. The sensitivity analysis that is carried out shows the effects of a potential increase in renewable energy sources (RES) capacity. Different sensitivity factors are investigated such as diesel price and hub height. The results show the environmental benefits of increased RES capacity and the variation of the cost of electricity production which remains high compared to other interconnected areas in Greece.