The role of storage technologies and power balancing strategies in renewables-based island energy systems: A case of the Andaman and Nicobar Islands

This study presents a comprehensive techno-economic analysis of a 100% renewable energy transition pathway for the Andaman and Nicobar Islands. Using the EnergyPLAN model with the add on optimisation tool EP-ALISON-LUT, multiple scenarios for 2035 and 2050 are explored, covering power, heat, transport, and industry sectors. A comparative analysis is carried out, first, on the role of electricity-based hydrogen and diesel to provide the required power balancing and second, scenarios are explored comparing domestic production and importing of electricity-based liquid fuels required in hard-to-abate segments. The results demonstrate that solar photovoltaics, particularly single-axis tracking systems, emerge as the dominant electricity generation technology, supported by onshore wind power and battery storage. Scenarios integrating domestic e-fuel and hydrogen production achieve comparable system costs to import-dependent alternatives. The study shows that e‑hydrogen rather than imported e-diesel plays a pivotal role in system flexibility and sector coupling, enabling reduced curtailment and cost-effective balancing. By 2050, total system costs decline by over 17%, and levelised cost of final energy falls by 36% in optimal domestic renewable energy configurations compared to the reference year 2023. The findings highlight that a 100% renewable energy system for the Andaman and Nicobar Islands is not only technically viable but also economically advantageous, with local e‑hydrogen and e-fuel production and storage cost competitive to import of e-fuels. • Short and long-term storage enhances reliability in isolated energy system. • Role of storage and balancing solutions is studied for island energy system. • EP-ALISON-LUT is used for modelling various scenarios. • Combination of short and long term storage reduces curtailment and total costs. • Local e-fuel and hydrogen production offer costs comparable to import-based options.