Energy transition analysis for Andaman and Nicobar islands

Abstract

This study conducts a detailed techno-economic analysis of a 100% renewable energy transition for the Andaman and Nicobar Islands. Using the EnergyPLAN model alongside the EP-ALISON-LUT optimization tool, scenarios for 2035 and 2050 are developed across power, heat, transport, and industry sectors. The analysis compares the role of green e-hydrogen and e-diesel in power system balancing and examines the cost implications of domestic production versus importing e-fuels for hard-to-abate sectors. Results show that solar photovoltaics, especially single-axis tracking PV, dominate electricity generation, supported by onshore wind power and battery storage. Scenarios with domestically produced e-fuels and hydrogen yield significantly lower system costs than those relying on imports. Hydrogen proves essential for enhancing system flexibility and sector integration, reducing curtailment and balancing costs. By 2050, total system costs drop by over 35%, and the levelised cost of final energy reaches 30–31 €/MWh in the most cost-effective domestic configurations compared to 2021. The findings confirm that a fully renewable energy system is both technically feasible and economically beneficial for the islands, with local e-fuel production offering a cost competitive solution than imports, and e-hydrogen serving as a key balancing resource over costly e-diesel.