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Renewable resources are constantly increasing their share in energy systemsaround the world. This paper evaluates how the capital cost of renewabletechnologies affects the optimal configuration and cost of energy of anisolated power system, comprising only renewable resources. HOMER software wasadapted to include and simulate pumped storage hydropower and geothermal powerplants. Ometepe island, Nicaragua, was selected as case study because wind,solar and geothermal resources are available, but more importantly, it has anextinct volcano with a crater lake on its top that could be used as the upperreservoir for pumped storage hydropower. When geothermal is considered, theresults show that this technology is able to serve the base load of the system,reducing the required installed capacity of other resources, as well asdecreasing the storage requirements and excess electricity production. When thegeothermal option is not included, the low complementarity in time of the othervariable resources increases the required size of the solar and wind parks ,amounting to up to 6.5 times the peak power, consequently rising the cost ofenergy and excess electricity production. The different system configurationresults demonstrated that economic aspects of renewable generation are at leastas important as the natural resources availability.

A geothermal hydro wind PV hybrid system with energy storage in an extinct volcano for 100% renewable supply in Ometepe, Nicaragua