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We estimated system-wise levelized cost of electricity (LCOE) for a powergrid with a high level of renewable energy using our grid optimization model.The estimation results of the system-wise LCOE are discussed in terms of thenexus of energy, environment, and economic growth for Small Island DevelopingStates (SIDS) economies. While 100% renewable energy is technologicallypossible with the usage of electricity storage, the estimated LCOE is as highas 397 $/MWh which is substantially higher than electricity prices forresidential consumers in the US and Japan. The susceptibility analyses implythat the estimated LCOE increase of 223% with a 100% renewable power gridcorresponds to an as high as 11% decrease in economic growth. This decrease ineconomic growth would have a significant negative impact on SIDS economies.However, hydrogen production via the electrolysis of water using the excessenergy supply from solar photovoltaics would reduce the LCOE, therefore highereconomic growth would be attained with less CO2 emission.

Power Grid with 100% Renewable Energy for Small Island Developing States -- Nexus of Energy, Environment, and Economic Growth