Isolated power systems in archipelagic regions commonly depend on diesel generation, resulting in high operating costs and carbon emissions. This study develops a 24-hour Dynamic economic dispatch model based on Mixed integer linear programming to optimize the operation of a hybrid diesel–photovoltaic–battery energy storage system in Labuhan Aji, Moyo Island, Indonesia. The model minimizes daily operating costs subject to power balance, diesel-unit output and commitment limits, ramp-rate constraints, photovoltaic availability, battery charging and discharging limits, and state-of-charge dynamics. Three configurations were evaluated using actual operational data: diesel-only, diesel–photovoltaic, and diesel–photovoltaic–battery. The daily electrical demand was 1,251.3 kWh. The diesel-only case incurred an operating cost of IDR 4,837,537 and produced 1,067.4 kg CO₂. Adding photovoltaic generation reduced the cost and emissions by 33.8%, while increasing the Renewable Energy Share to 33.9%. The complete hybrid configuration delivered the best performance: diesel generation fell to 632.0 kWh, operating cost decreased to IDR 2,409,172, emissions declined to 539.1 kg CO₂, and the Renewable Energy Share reached 49.5%. Battery storage shifted daytime solar surplus to evening demand and supported peak shaving. The results demonstrate that coordinated dispatch can substantially improve the economic and environmental performance of isolated power systems without compromising hourly supply adequacy.
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