The electrical sector in the Caribbean region of Colombia is currently facing problems that affect its reliability. Many thermo-electric plants are required to fill the gap and ensure energy supply. This paper thus proposes a hybrid renewable energy generation plant that could supply a percentage of the total energy demand and reduce the environmental impact of conventional energy generation. The hybrid plant works with a photovoltaic (PV) system and wind turbine systems, connected in parallel with the grid to supply a renewable fraction of the total energy demand. The investigation was conducted in three steps: the first stage determined locations where the energy system was able to take advantage of renewable sources, the second identified a location that could work more efficiently from an economic perspective, and finally, the third step estimated the number of PV solar panels and wind turbines required to guarantee optimal functioning for this location using, as a main method of calculation, the software HOMER pro^® for hybrid optimization with multiple energy resources. The proposed system is expected to not only limit environmental impacts but also decrease total costs of electric grid consumption from thermoelectric plants. The simulations helped identify Puerto Bolivar, Colombia, as the location where the hybrid plant made the best use of non-conventional resources of energy. However, Rancho Grande was found to offer the system more efficiency, while generating a considerable amount of energy at the lowest possible cost. An optimal combination was also obtained—441 PV arrays and 3 wind turbines, resulting in a net present cost (NPC) of $11.8 million and low CO₂ production of 244.1 tons per year.

The electrification of rural or isolated areas coupled with increasing environmental concerns have promoted the emergence of Distributed Energy Resources (DER) and the operation by isolated microgrids. However, the integration of such resources involves technical issues related to the reliability and continuity of the electricity supply. Indeed, the uncertainty of renewable generation sources and the reduced inertia of isolated microgrids are challenges for the operation of these distribution systems. One way to address them is by providing ancillary services through all the resources involved in the system’s operation (generation assets, demand share, and storage systems). Accordingly, this paper first presents a literature review of the challenges and potential benefits of integrating DERs into the operation of a distribution system. It also includes some common strategies to mitigate the vulnerability of the introduction of these technologies in microgrids. Afterwards, the current state of each type of resource in Colombia is assessed. Finally, some basic strategies that enhance the benefits of DER integration are outlined along with the overcoming of challenges of microgrid operation in said country. To that end, we consider isolated Colombian regions to be natural laboratories where the effects of DER integration and the requirements for the operation by local production units can be analyzed.

The energy transition has shown that fossil generation can be complemented with renewable energy and other resources capable of providing flexibility to the energy system’s operation, in compliance with the wholesale electricity market’s rules. This paper proposes a market-based methodology for introducing flexible demand in the energy dispatch, optimizing the scheduling of electricity system operation in the short-term, and considers the challenge of implementing an incentive scheme for participants in demand-response programs. The scheme includes the criteria of the elasticity of substitution and a renewable energy quota. This methodology is focused on a strategic demand shift to minimize the cost of supply; increase the dispatch of renewable energy; control CO₂ emissions; and satisfy the generation, demand, and transmission operating constraints. These conditions encourage the development of a simulation tool that allows a sensitivity analysis to aid decision-making by operators and agents. The proposed methodology optimizes the operational cost of generation supply and specific performance indicators to determine the percentages of demand shift, the amount of CO₂ emissions, the ratio of unserved power, the demand benefits obtained from an incentive scheme, and the natural market behavior.

Context: The increase in rural electrification projects has led to the emergence of technologies that allow operating local distribution networks such as isolated microgrids. However, the successful implementation of these isolated microgrids requires that their planning, operation, monitoring, and control consider a framework that allows maintaining technical, economic, and environmental sustainability over an extended time horizon. Therefore, this paper proposes a model that allows identifying the main technical, economic, regulatory, and environmental variables that should be considered for the successful planning of Colombian rural electrification solutions. Methodology: This paper proposes the use of System Dynamics to create a model that allows describing the causal relationships between the different variables essential for the design and operation of isolated microgrids. To this effect, the identification of the related variables and their corresponding classification are presented, together with a model of theoretical expectations about their relationships. Results: A model that integrates and describes the behavior of the main variables involved in the operation of microgrids was formulated to analyze the possible implementation of policies that guarantee the sustainability of these solutions and enhance the use of renewable energy resources while improving the continuity of the electric energy supply. Conclusions: It was possible to show that operation by means of isolated microgrids with the integration of Distributed Energy Resources is a sustainable solution for rural electrification in Colombia, given that it enhances the use of generation resources with a reduced carbon footprint that are present in the territories under study. These microgrids have the potential to improve the living conditions of users by reducing unsatisfied basic needs. Funding: Universidad Nacional de Colombia – Sede Manizales.

This study focuses on strategic development for incorporating distributed energy resources into the electrical off-grid power system operator, or isolated microgrids, to guarantee sustainability and energy transition by an adapted business model. A business model canvas was adapted to allow sustainability in an off-grid Colombian microgrid by integrating distributed energy resources with voltage and frequency control as ancillary services; support services that maintain the stability and security of energy supply in isolated rural electrification. The business model canvas was studied with government funds, who cover all the costs associated with making the model attractive and sustainable in a Colombian context, and some proposed technical incentives to analyze the profitability and guarantee the sustainability of rural electrification. The proposed modified business model canvas offers a useful tool for supporting microgrid market scheme development to include distributed energy resources in a Colombian case. The model showed the importance of motivating investors and increasing profitability by including a value proposition based on technical contributions that benefit the microgrid operation; by around 80%. These benefits can solve some stability problems, including ancillary services, like frequency and voltage support, using distributed energy resources. Finally, integrating rural electrification in off-grid zones into the national energy regulation system is vital for incentivizing sustainable projects in rural zones, such as microgrids.