Islands and remote electricity systems are heavily dependent on imported fossil fuels, resulting in high costs, adverse environmental impacts, and high vulnerability to supply disruption. The implementation of innovative solutions is needed to diversify the energy generation mix, enhance grid reliability, and reduce greenhouse gas emissions on islands. This study explores the techno‐economic viability of a proposed solar power tower (SPT) plant designed for the island power system of Baja California Sur (BCS), which is 86% based on imported fossil fuels. Using a computer‐parametric analysis based on the system advisor model (SAM), a 50 MWe SPT with molten salt storage is designed and optimized under different operational parameters and the climatic conditions of BCS. The second focus of the study is financial feasibility, which involves examining regional electricity prices, determining the power purchase agreement (PPA) price, and calculating the levelized cost of electricity (LCoE) and the net present value (NPV) of the project under different scenarios. The study also considers the strategic selection of the site and reviews the BCS’s current energy demand and its potential solar resources. The 50 MWe SPT plant achieved an LCoE of 10.97 ¢/kWh. The average electricity rate of 19.4 ± 8.8 ¢/kWh makes SPT technology viable in the isolated BCS system. When energy price variability is accounted for using the TOD factor, a 17% improvement in NPV was observed. The findings show that the SPT is economically viable for island power grids such as BCS.
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