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25. June 2021

Hydrogen storage potential study for mini-grids in Chile

In this contract research project, RLI is examining the use of green hydrogen to replace existing diesel power supply for three exemplified mini-grids in Chile.

Mini-grids, sometimes called micro grids or island grids, are locally delineated and self-contained power grids that supply electricity to multiple homes or businesses. They can be supplied by various fossil and renewable energy sources, such as photovoltaic (PV) systems, wind turbines, hydroelectric plants, or diesel generators. To ensure supply stability, a mini-grid often also includes battery storage.

Hydrogen as a storage option for excess electricity

. In so-called hybrid systems, mini-grids combine several types of power generation, such as combining diesel generators with PV plants or wind turbines. This is frequently done to counterbalance seasonal or weather-related fluctuations, as renewable energy is often not sufficient to provide power at all times of the day or year. Diesel then serves as a back-up to bridge the gap. In order to make a mini-grid 100 percent renewable, the diesel back-up needs to be replaced by either a different green power source or by a battery that can supply the grid when generation is low. One form of a battery – or energy storage – could be hydrogen. By electrolysis, surplus energy can be stored in form of hydrogen and oxygen. Hydrogen then can be used for electricity generation when renewable supply is low. In one of the specific cases in this project, oxygen may be supplied to fish farming.

Calculation based on concrete use cases

. In this project, three different mini-grid sites in Chile are in focus. They are not connected to the national grid and currently use diesel as the main power source. RLI analyzes these mini-grids using the MVS tool to find out if hydrogen storage could be a viable solution to help replace diesel with renewable power sources.

The three mini grids analyzed in this study are:
  • Island grid Melinka – a port city of 1,300 inhabitants on a physical island. It is currently supplied with an expensive diesel supply system that requires heavy subsidization to keep the energy tariffs low for consumers.
  • Aysén – a region with 100,000 inhabitants with a current energy mix of diesel and hydropower.
  • Salmonera – a fish farming site. While green hydrogen may increase the renewable share of the site, the side product oxygen may be usable in the process of fish farming itself.
Self-developed open source tool is used

. The MVS tool developed by RLI is an open source simulation software that facilitates simulating and optimizing multi-vector energy systems. By feeding information from the existing energy system, such as energy system assets, consumption data, and economic data into the tool, the cheapest energy system design for the mini-grid can be determined. This includes both the suggested capacities to be installed, as well as their operation and the subsequent economic and technical performance of the system.

The study will then present design options for the three mini-grids using hydrogen as energy storage to the German-Chilean Chamber of Commerce and Industry, who has commissioned the study.

Project duration: May – July 2021

Image: Xexito, Melinka, CC BY-SA 3.0

RLI assumes the following tasks in the project:

  • Collection of input data from the client
  • Setting up an example scenario as a basis for discussion and definition of the subsequent scenarios together with the client
  • Organizing and hosting workshop to discuss the procedure, selection criteria and scenarios
  • Set-up and design of the technical-economic systems for the three defined scenarios
  • Sensitivity analyses of the three scenarios by variation of input data
Deutsch-Chilenische Industrie- und Handelskammer


Catherina Cader

Project manager

Martha Hoffmann