Techno-Economic Optimization of an Isolated Solar Microgrid: A Case Study in a Brazilian Amazon Community

Abstract

Many communities in the Brazilian Amazon region remain without reliable access to electricity due to geographical barriers and the high cost of connecting to the national grid. This study aims to evaluate the techno-economic feasibility of implementing battery storage systems in an existing isolated solar–diesel microgrid located in Tunui-Cachoeira, in the district of São Gabriel da Cachoeira (AM). The analysis uses an energy balance methodology, implemented through the HOMER Pro simulation platform, to assess three scenarios: (i) without batteries, (ii) with lithium-ion batteries, and (iii) with lead–acid batteries. Technical and economic indicators such as net present cost (NPC), levelized cost of energy (LCOE), diesel consumption, and renewable fraction were compared. The results indicate that incorporating lead–acid batteries yields the lowest LCOE (1.99 R$/kWh) and the highest renewable fraction (96.8%). This demonstrates that adding energy storage systems significantly enhances the performance and cost-effectiveness of microgrids, offering a viable path to electrify remote and hard-to-reach communities in the Amazon.