Techno-economic analysis of a hybrid energy system integrating nuclear, renewable and non-renewable energy sources: a case study of Tenerife

Spain is at the forefront of the energy transition driven by energy and climate policies, which are aligned with the objective of achieving national climate neutrality by 2050. The current Spanish energy framework is centred on the large-scale deployment of renewable energy sources, with the recent increase in installed renewable power capacity mainly driven by solar photovoltaic technologies, which accounted for 80.4% of the new power capacity incorporated in 2021. However, the recent blackout affecting the Iberian Peninsula highlighted the infrastructure was not prepared to withstand with frequency variations due to loss of renewable generation, and the planned phase-out of nuclear power plants in Spain by 2035 represents a critical element in shaping the future electricity mix, potentially increasing the reliance on variable renewable energy sources and placing additional pressure on the electricity grid. These challenges are particularly relevant in non-peninsular island systems, where limited interconnection capacity and a high dependence on imported fossil fuels increase system vulnerability. Tenerife was selected as a representative island case study due to its high renewable energy potential, significant electricity demand, and structurally isolated power system. A techno economic analysis of a model based on the Tenerife’s electricity system is conducted using an hourly demand profile and site-specific resource data, assessing the integration of photovoltaic and wind generation with energy storage, natural gas-fired generation, and small modular nuclear reactors as low-carbon options. Multiple system configurations are evaluated under different technology mixes and penetration levels. The results highlight the trade-offs between system cost, renewable integration and operational flexibility, supporting the assessment of system design strategies aimed at improving the resilience and decarbonisation of island electricity systems.