TEM Journal. Volume 10, Issue 4, Pages 2001-2006, ISSN 2217-8309, DOI: 10.18421/TEM104-66, November 2021. TEM Journal – Volume 10 / Number 4 / 2021. 2001 Economic Feasibility Study on PV/Wind Hybrid Microgrids for Indonesia Remote Island Application Syafii Syafii 1 , Pinto Anugrah 1 , Heru Dibyo Laksono 1 , Herris Yamashika 2 1 Electrical Engineering Department, Faculty of Engineering, Universitas Andalas, Padang, Indonesia 2 Electrical Engineering Department, Universitas Muhammadiyah Sumatera Barat, Bukit Tinggi, Indonesia Abstract – This paper presents the economic feasibility of hybrid microgrid power system for three remote islands of Sumatra, Indonesia. The microgrid system simulated and analysed using Homer Pro software. Optimization results showed that the combination of photovoltaic (PV), diesel generation (G) and batteries (Batt) for microgrid power system in Mandeh and Lagundri Island area were the most economical configuration. Meanwhile, for Mentawai area, the combination of PV, Wind Turbine (WT), G, Batt was the most optimal since it has higher wind speed then the other two areas. The Mandeh area has the highest solar radiation compared to the other two areas, resulting in the lowest CoE of $0.096/kWh as well as the lowest investment and operational costs. For the fixed PV 100 kW scenario, the optimal configuration is obtained with 86 kW supplied by WT for the Lagundri location, and 67 kW supplied by WT for the Mentawai area, while the WT installation area is not recommended for Mandeh location. The power management analysis showed that the average and patterns of weather parameters including solar radiation and wind speed effect both PV and Wind electrical power production. Keywords – economic feasibility, hybrid microgrid system, PV/Wind and Indonesia remote application. DOI: 10.18421/TEM104-66 https://doi.org/10.18421/TEM104-66 Corresponding author: Syafii Syafii, Electrical Engineering Department, Faculty of Engineering, Universitas Andalas, Padang, Indonesia Email: syafii@eng.unand.ac.id Received: 16 May 2021. Revised: 18 October 2021. Accepted: 25 October 2021. Published: 26 November 2021. © 2021 Syafii Syafii et al; published by UIKTEN. This work is licensed under the Creative Commons Attribution‐NonCommercial‐NoDerivs 4.0 License. The article is published with Open Access at www.temjournal.com 1. Introduction The electricity supply to remote islands can improve the socio-economic status of the community. Today, many researches focused on renewable energy technologies because they play important role in improving the quality of life by fulfilment of electricity needs and being environmentally friendly [1], [2]. Among these renewable energy technologies, the generation of electrical energy from primary energy sources such as sunlight and wind is an option that is currently being developed and will be widely used in the future [3], [4]. Both resources are abundant and do not produce greenhouse gas emission [5], [6]. The integration of renewable energy into existing energy grids not only reduces dependence on fossil fuels but also provides sustainable solutions for future power generation [7]. Indonesia as one of the developing countries where the power plant is still dominated by fossil energy- based generators is trying to increase the use of energy from renewable sources. Through the National Energy Policy (NEP), Indonesia has targeted the use of new and renewable energy by 23% in 2025 and 31% in 2050 [8]. According to the Indonesia Energy Outlook 2016, there is about 135.5 GW installed capacity required in 2025, and 45.2 GW will be coming from renewables [9]. Therefore, research that analysed the use of renewable energy in various regions in Indonesia is urgent to be done. Indonesia is an archipelago country and is crossed by the equator [10], has natural beauty and abundance of solar [11] and small wind speed energy potential [12]. The beauty of Lagundri beach in the Nias archipelago, Mandeh island resort and beaches in the Mentawai islands are the main attractions for both foreign tourists and domestic tourists. The islands of Nias, Mentawai and Mandeh are priorities for the development of electricity access because of the potential for beautiful tourism sites. Therefore, these three areas were taken in this study as a case study location for the development of a hybrid