6oladigbolu (2019)
6oladigbolu (2019)
Article
Techno-Economic and Sensitivity Analyses for
an Optimal Hybrid Power System Which Is
Adaptable and Effective for Rural Electrification:
A Case Study of Nigeria
Jamiu Omotayo Oladigbolu * , Makbul A. M. Ramli and Yusuf A. Al-Turki
Renewable Energy Research Group, Department of Electrical and Computer Engineering, King Abdul-Aziz
University, Jeddah 21589, Saudi Arabia; mramli@kau.edu.sa (M.A.M.R.); yaturki@kau.edu.sa (Y.A.A.-T.)
* Correspondence: omotayooladigbolu@gmail.com; Tel.: +23-470-3563-4424 or +96-65-5768-3955
Received: 18 July 2019; Accepted: 6 September 2019; Published: 11 September 2019
Abstract: This paper studies in detail a systematic approach to offering a combination of conventional
and renewable energy that is adaptable enough to operate in grid-connected and off- grid modes
to provide power to a remote village located in Nigeria. To this aim, the HOMER pro software
tool was used to model two scenarios from the on-and off-grid systems, evaluating in detail the
techno-economic effects and operational behavior of the systems and their adverse impacts on the
environment. The impacts of varying load demand, grid power and sellback prices, diesel prices, and
solar irradiation levels on system performance were discussed. Results showed that, for both cases,
the optimum design consists of a diesel generator rated at 12 kW, with a photovoltaic (PV) panel of
54 kW, a 70 battery group (484 kWh nominal capacity battery bank), and a 21 kW converter. The cost
of electricity (COE) and net present cost (NPC) were in the range of $0.1/kWh to 0.218 $/kWh and
$117,598 to $273,185, respectively, and CO2 emissions ranged between 5963 and 49,393 kg/year in the
two configurations. The results of this work provide a general framework for setting up a flexible and
reliable system architecture to ensure continuous power supply to consumers under all conditions.
Keywords: hybrid system; photovoltaic (PV); HOMER; techno-economic analysis; net present
cost (NPC)
1. Introduction
Ensuring a continuous and reliable power supply represents a perpetual challenge for the
sustainable economic growth of any country. According to the World Bank, only about 22.6% of the
rural populace has access to electricity in Nigeria. This percentage of electricity access is considerably
lower than that of Morocco and Ghana whose rural electricity access stands at 100% and 65.3%,
respectively [1]. Moreover, world electricity generation increased by 2.8% in 2017 due to the ever-
growing expansion of renewable energy sources (RESs) led by solar (35%, 114 TWh) and wind (17%,
163 TWh), which contributed to about 49% of the entire growth, despite accounting for only 8% of
the total power generated [2]. RESs are essentially useful for sustainable and clean energy power
supply [3]. Besides, problems associated with individual energy sources can be mitigated when several
energy sources are combined to form a hybrid system of renewable and non-renewable energy.
According to ref. [4], Nigeria’s existing power plants have the capacity to generate 12,522 MW of
electricity. However, only about 32% is realized due to high losses, power theft, lack of maintenance
of power facilities, etc. To date, the country continues to face power supply problems with many
customers being exposed to persistent power cuts. This is because the power generated is far below the
electricity needed. This led to the privatization of the country’s generation and distribution companies
in 2013 [5]. Therefore, the government is seeking to diversify its electricity sources by implementing
RESs for power generation. To this aim, the country has set a target of generating at least 2000 MW
of renewable power by 2020 [5], and achieving 30% of its total power generation from RESs by the
end of 2030 [6]. All potential RESs in the country such as hydro, wind, and solar can be exploited to
meet electricity demand, with investment costs provided by the government, foreign investors, and
the private sector.
A hybrid power system (HPS) is a combination of various energy resources (solar, wind, hydro,
diesel, biomass, etc.) with or without an energy storage system that are used to meet the electricity load
demand. Hybrid systems’ reliability and sustainability can be enhanced when different energy resources
are utilized together. Furthermore, the recent reduction in solar PV and wind power technology costs,
combined with innovative financing approaches, continued innovation in the design and operation
of wind turbines, and financial inducement have attracted many investors to the sector, making PV
and wind power systems quite competitive with conventional energy sources [7,8]. Furthermore,
the costs of energy storage devices have been rapidly reduced [9], making battery/RE systems more
economically feasible for off-grid electricity generation systems [10]. Besides, stand-alone diesel-fueled
power systems, on the other hand, are very expensive to operate and maintain. Their average operation
costs increase marginally at low load levels, especially at less than 40% rated capacity [11].
Hence, PV/wind/battery/diesel generation systems with both off- and on-grid connections can
ensure a continuous power supply with low operating costs, in addition to minimizing atmospheric
pollution levels [3,12]. A renewable energy (RE) system has a high procurement cost when compared to
traditional diesel plants, yet RE systems are finding a niche in many small and mass-scale low- carbon
off-grid applications due to the availability of this energy source in areas where grid power is either
erratic or simply unavailable [8,13]. Furthermore, various RE-based projects have been installed by
government agencies in urban and remote areas primarily for electricity supply, water pumping, street
lighting, and vaccine refrigerators in rural healthcare centers [14,15]. However, most of these projects
are either small hydropower schemes of about 30 MW of total capacity or stand- alone mini-grid or
off-grid light applications of a few kilo-watts, while off-grid hybrid RE projects are yet to be installed
across the country.
Techno-economic analyses of combined RESs and conventional energy sources have been
conducted in many studies, aiming to improve system reliability and tackle the unpredictable
nature of grid-independent RE systems. Off-grid hybrid renewable electricity systems have been
developed and proposed for a wide range of applications all around the globe. An HPS has been
considered as a viable alternative system, showing a 37% CO2 emission reduction compared to
the conventional diesel system [16]. In addition, a PV/hydro/diesel HPS system revealed a higher
efficiency of electricity supply. However, it has a greater cost than the other HPSs or a diesel-only
power system [17]. A techno-economic viability study of PV with/without diesel generator using a
worst-case user demand approach showed that a PV system of 68, 76, and 61 kW can adequately fulfill
the load requirement of 63,500 kWh/year, with a system availability of 99.2% for selected sites [18].
In another study, the addition of flywheel energy storage to a hybrid PV/diesel system makes it more
economically viable [19]. Adaramola et al. [20] assessed the possibility of employing an HPS for power
generation in semi-urban and rural areas in Jos, Nigeria using HOMER software. Optimal solutions
were obtained at different interest rates and PV system costs using solar energy, a battery bank, and a
diesel generator. Ngan and Tan [21] assessed a wind/PV/diesel hybrid system and revealed that both
diesel/PV and wind/diesel/PV HPS systems have higher net present cost (NPC) and cost of energy
(COE) in comparison to the diesel-alone system.
Numerous studies have been conducted on both grid-connected and off-grid HPSs focusing on
their reliability, cost-effectiveness, technical performance, environmental impact, and many other
aspects. For example, in ref. [22], a suitable renewable based hybrid energy system was evaluated and
compared with high grid extension option, where the former system showed better performance in
terms of NPC, COE, and carbon emissions. In an economic feasibility study for electricity demand in
Sustainability 2019, 11, 4959 3 of 25
Iran using either a hybrid diesel/RE or grid/RE system, wind turbine was reported to reduce carbon
emissions by 32%, with only 44% increase in NPC [22]. However, the authors suggested that expanding
a diesel-alone system to the proposed wind/diesel/battery system prior to grid connections would
lower the overall expense. Guler et al. [23] evaluated the feasibility of a hybrid grid/PV/wind system to
meet the energy requirements of a medium-sized hotel in Turkey. The optimum solution was achieved
only in the first scenario. In another study, Kim et al. [24] reported that a PV/wind/battery/converter
system is the optimum and most feasible standalone energy generation system among several options
of grid-connected and off-grid systems considered.
However, most of the previous studies conducted on only a few areas across the country to
investigate the viability of renewable hybrid energy generation system using the HOMER simulation
program and the other techniques were limited to certain system configurations (grid-connected or
off-grid topology) at different locations [25,26]. Moreover, the optimal design used in most of these
studies cannot be effectively realized under both off-grid and grid-connected conditions without
changing the entire system architecture. This demonstrates there is presently no study that has been
performed that investigates a hybrid system capable of adequately functioning with both on-grid
and grid-independent connections. Therefore, a reliable and adaptable hybrid system architecture
is proposed in this work including all the functional parameters associated with the system for on-
and off-grid operations. Besides, according to the literature, no study has been conducted that looks
at developing a comprehensive and general approach to analyzing a common hybrid configuration,
suitable for both on-and off-grid modes.
This study aims to determine an optimal adaptable system configuration for a renewable energy
system and conventional energy system in combination with or without a battery storage system
based on techno-economic and environmental investigation using the HOMER simulation tool for a
residential load in Nigeria’s dry climate region. In this paper, multiple parameters including NPC, COE,
and CO2 emissions, operating cost, renewable fraction, excess electricity, and battery state of charge
were used to analyze system performance and the selection of the appropriate system configuration.
A detailed sensitivity analysis to confirm the adaptability of the proposed system configuration to
associated operational parameters was also conducted. The information in this work will assist
the government and other major energy players in developing, planning, and implementing rural
electrification frameworks.
2. Methodology
This study evaluated a community located in the north-western part of Nigeria at a coordinate
of 11◦ 32′ N and 7◦ 13′ E. Based on the position of the selected area on the earth’s surface, it is
characterized by a dry (hot semi-arid) climate. The techno-economic analysis and assessment of the
environmental impact were based on solar irradiation levels, wind speed, fuel cost, and daily load
demand. The meteorological data (solar radiation, ambient temperature, etc.) used in this research was
retrieved from the National Aeronautics and Space Administration (NASA) satellite database website
by specifying the latitude and longitude of the chosen locations. The proper and accurate selection
of the criteria used in the analysis of the renewable and non-renewable energy model is essential in
evaluating the performance of different frameworks.
The following outlines were employed in this study.
Load profile of the selected areas:
Figure 1. Typical 24-h load profile of the 20 households on a day of: (a) Dry season; (b) wet season.
Sustainability 2019, 11, 4959 5 of 25
Figure 2. Global solar radiation and clearness index data for Dukke village [30].
Furthermore, the months of July and August recorded low global solar radiation due to heavy
overcast conditions that exist during this period in Nigeria [25]. The ambient temperature, on the other
hand, affects the performance and power production level of PV panels. The influence of temperature
on the PV module depends on the mounting configuration and climatic conditions of a particular
place [33]; hence the need to consider variations in the ambient temperature of this location. Figure 3
shows the monthly mean ambient temperature as retrieved from the NASA database.
The mean ambient temperature per month exceeds 27 ◦ C between March and April. Moreover,
January and August record the lowest monthly average temperatures of below 23.6 ◦ C. However, the
annual average temperature is approximately 25 ◦ C. By considering available data for the ambient
temperature during simulation, HOMER evaluates the cell temperature for each time interval and
takes the value into account while computing the output power of the PV system.
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Table 2. Cont.
GT
!
PPV = YPV ƒPV [1 + αP (TC − TC,STC )] (1)
GT,STC
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where YPV refers to the PV power output under standard test conditions (STC) in kW, ƒPV represents
the PV de-rating factor (%), GT is the solar radiation incident on the PV panel in the current time step
(kW/m2 ), GT,STC refers to the incident radiation under standard test conditions (1 kW/m2 ), αp is the
temperature coefficient of power (%/◦ C), TC is the temperature of the PV cell (◦ C), and TC,STC is the
PV cell temperature at STC (25 ◦ C). The derating factor is the decrease in the output of the PV array
resulting from temperature losses or any other factors that vary the expected output of the PV system
under absolute conditions.
where Fd , a, Td , b, Pd represent the fuel consumption rate of diesel generator (L/h), the coefficient
of fuel intercept (L/kWh), the diesel generator capacity, the fuel slope (L/kWh), and the generator
output, respectively. However, a and b were taken to be 0.0161 L/kWh rated and 0.2486 L/kWh
output [45], respectively.
EL AD
CBat = (4)
ηinv DODηbat
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where EL refers to the average load energy per day (kWh/day), AD represents the autonomy days,
ηinv denotes inverter efficiency (95%), DOD represents the depth of discharge (80%), and ηbat denotes
battery efficiency (85%).
Cann,tot
CNPC = (6)
CRF(i, n)
where Cann,tot refers to the total annualized cost ($/year), n refers to the lifespan of the project (year),
i denotes annual real interest rate (%), and CRF, which is a function of i and n, refers to the capital
recovery factor as given in ref [50]:
i(1 + i)n
CRF(i, n) = (7)
(1 + i)n − 1
Cann,tot
COE = (8)
Lprim + Ldef + Elgrid,sales
where Lrim and Ldef represent the overall amounts of load served by the system per year (primary and
deferrable load), and Elgrid,sales refers to the quantity of electricity sold per year to the utility grid.
where mf refers to the amount of fuel (liter), HVf denotes the fuel heating value (MJ/L), CEFf represents
the carbon emissions factor (ton carbon/TJ), and, Xc is the oxidized carbon fraction.
The system was analyzed under off-grid mode to determine the optimum combination of
components as well as to evaluate its techno-economic performance and environmental impact.
Sustainability 2019, 11, 4959 12 of 25
Moreover, a sensitivity analysis was conducted on the off-grid hybrid system to assess the effect of
changing load demand, RE availability levels, and fuel price on the optimum configuration. The system
was equally tested according to the utility grid connection scenario to quantify and investigate the
impact of these components on the overall component mix, as well as the working performance.
A sensitivity analysis was carried out on the optimum solution for the on-grid connection to examine
the effect of some critical variables: grid power and sell-back prices, diesel price, and electricity
consumption rate. The final configuration obtained based on the analysis is an optimum design with
the capability to serve load requirements on a continuous basis in both scenarios, without making any
significant changes to the design configuration.
To meet the load requirement, the generator system runs for 1301 h/year and contributes to
8.51% (8,152 kWh/year) of the overall production, which leads to fuel consumption of 2278 L/year
Sustainability 2019, 11, 4959 13 of 25
with a rate of 0.279 L per kWh. The annual generated energy of the PV is 87,661 kWh with a COE
of $0.0623/kWh. The monthly energy distribution of each energy source for a year with an optimum
component combination is presented in Figure 7.
The fact that the surplus energy produced by the off-grid system cannot be sold to the national
utility grid poses a serious challenge for off-grid HPS. In this case, a small percentage of excess electricity
is generated. It constitutes about 6% (5741 kWh/year) of the overall electricity production. However,
the system can be connected to the national grid to sell back excess energy; in this way, all the excess
electricity can be consumed, in addition to increasing the system’s earnings.
Details of the NPC of the optimized PV/battery/diesel hybrid system by cost type are illustrated
in Figure 8. A cost analysis of different cost types as a function of each component is given as follows:
Sustainability 2019, 11, 4959 14 of 25
• The initial capital cost of the PV is around 46% of the overall capital cost of the system, closely
followed by battery storage, which constitutes around 44% of the overall capital cost. The converter
and diesel generator contributed about 6.44% and 3.43%, respectively. The total capital cost of the
system is calculated to be $174,792, with the cost of the PV system accounting for most of the cost
in this scenario.
• The total replacement cost of the system is $69,138. The PV system has no replacement cost
since the lifetime of this component is 20 years, which corresponds to the project’s lifetime.
The replacement cost is, however, the sum of the converter, batteries, and diesel generator cost of
replacement, where the storage system contributes to about 84% of the total cost due to its short-
term operational lifetime compared to the overall system lifetime. The battery bank expected life
and the diesel generator operational life are 14.3 years and 11.5 years respectively.
• The overall operating, salvage and fuel costs of the proposed system are estimated to be $28,280,
$36,322, and $23,465, respectively.
200,000
150,000
Net Present Cost ($)
100,000 PV
Batteries
Converter
50,000 Generator
0
Capital Replacement Operating Fuel Salvage
-50,000
Figure 8. Net present cost (NPC) details of the optimized hybrid system as a function of cost.
system is displayed in Figure 9. It shows that the months of July through to September recorded the
lowest charging cycles due to the low solar irradiation levels reported in these months.
This reduces the energy penetration of solar; thus, additional energy is expected to be supplied
by the battery to meet the load demand. Conversely, the highest charging cycle was reported in the
months of January through to May. This indicates the system mostly relies on other components to
serve the load.
NPC ($)
COE ($/kWh)
CO2 (kg/yr.)
260800 7500
260600 0.2190
260400 7000
0.2188
260200
260000 6500
0.2186
259800
6000
259600 0.2184
259400
259000
0.2180 5000
258800
10 15 20 25 30 35 40
Generator minimum load ratio (%)
Figure 10. Effect of generator minimum load ratio on NPC, cost of energy (COE), and CO2 emissions.
NPC ($)
COE ($/kWh)
CO2 (kg/yr)
280000
0.23 25000
270000
0.22 20000
260000
250000 0.21
15000
240000 0.20
10000
230000
0.19
5000
220000
0.18
210000 0
0.17
0.4 0.6 0.8 1.0 1.2
Diesel fuel price ($/L)
Figure 11. Impact of fuel price on NPC, COE, and CO2 gas emissions.
Sustainability 2019, 11, 4959 17 of 25
NPC ($)
COE ($/kWh)
CO2 (kg/yr)
290000
6000
0.2200
285000
5800
5400
275000
0.2190 5200
270000
5000
4600
260000
0.2180
4400
255000
200 205 210 215 220
Load growth (kWh/day)
Figure 12. Impact of load demand growth on NPC, COE, and CO2 emissions.
To validate the results, the above parameters need to be simultaneously varied alongside solar
insolation levels to assess their impacts on the overall operational behavior of the system. In the
meantime, the diesel fuel price is varied between $0.1/L and $1.2/L, load demand between 200 kWh/day
and 230 kWh/day, and global solar radiation in the range of 1.5 kWh/m2 /day to 6.5 kWh/m2 /day.
The results of the sensitivity analysis are reported in Figure 13 with variations in the diesel fuel
price against average solar radiation at different load demands (load growth). The results obtained
clearly reveal the potential of the proposed DG/PV/battery design in meeting the load demand despite
changes in some major variables that directly influence hybrid system behavior under standalone
conditions. However, DG/battery and DG/PV hybrid systems are preferred only when the diesel
fuel price reported low values of less than $0.32/L and the average solar irradiation reached at least
2.41 kWh/m2 /day. Otherwise, the hybrid DG/PV/battery generation system, which corresponds to the
optimum solution illustrated in Section 3.2, is preferred over other system combinations throughout
the project’s lifetime. Further increases in the load demand had no significant effect on the optimum
solution as the system demonstrated its potential to meet load demand changes, even during the
extreme condition of fuel scarcity.
0.2180
4400
255000
200 205 210 215 220
Load growth (kWh/day)
Sustainability 2019, 11, 4959 18 of 25
Figure 13. Sensitivity analysis of grid-independent hybrid system (diesel fuel price against average
solar radiation) at (a) 200 kWh/day; (b) 212 kWh/day; (c) 220 kWh/day; (d) 230 kWh/day; and above.
Figure 15. Sensitivity evaluation of grid-connected HPS: grid power price against average load demand
for various diesel fuel and sell-back prices of (a) $0.63/L, $0.06/kWh; (b) $0.73/L, $0.16/kWh; (c) $0.83/L,
$0.26/kW; (d) $0.93/L, $0.36/kWh; and above.
(a) NPC
COE (b)
NPC
COE
200000 0.12
100000 0.10 200000 0.15
0.08
0
0.06 0 0.10
-100000
CO E ($/kW h)
CO E ($/kW h)
0.04
NP C ($)
NP C ($)
-200000 0.02 0.05
-200000
-300000 0.00
-0.02 0.00
-400000
-0.04 -400000
-500000
-0.06 -0.05
-600000 -0.08 -600000
-700000 -0.10 -0.10
0.05 0.10 0.15 0.20 0.25 0.05 0.10 0.15 0.20 0.25
(c) NPC
COE (d)
NPC
COE
400000 400000 0.20
0.15
200000 200000 0.15
0.10
0.10
CO E ($/kW h)
CO E ($/kW h)
0 0
NP C ($)
NP C ($)
0.05
0.05
-200000 -200000
0.00
0.00
-400000 -400000
-0.05 -0.05
-600000 -600000
-0.10 -0.10
0.05 0.10 0.15 0.20 0.25 0.05 0.10 0.15 0.20 0.25
(e) NPC
COE
400000 0.20
200000 0.15
0.10
CO E ($/kW h)
0
NP C ($)
0.05
-200000
0.00
-400000
-0.05
-600000
-0.10
0.05 0.10 0.15 0.20 0.25
Figure 16. Effect of changing the grid power price on the COE and total NPC over (a) $0.1/kWh;
(b) $0.2/kWh; (c) $0.3/kWh; (d) $0.4/kWh; (e) $0.5/kWh; and above.
On the contrary, increasing the grid power price by up to $0.5/Wh increases both NPC and COE.
The effect of increasing the grid power price on COE is apparent, as the COE per kWh price increased
by 64.3% when the grid power price increased from $0.1/kWh to $0.5/kWh at the base case sell-back
price ($0.06/kWh). The effect of changing any of these parameters on the overall system behavior is
particularly important to understand and needs to be considered when updating the off-grid system
with utility grid connections.
50,000
CO2 Emission (kg/yr)
40,000
30,000
20,000
10,000
0
0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
Grid power price ($/kWh)
Figure 17. Effect of different grid power and sell-back prices on the amount of CO2 gas emissions.
4. Conclusions
In this paper, the design of an optimum hybrid power generation system to meet the load demand
of a typical remote village in the northwestern region of Nigeria was analyzed. Several cases for
on-grid and off-grid connections of a wind turbine, PV panel, battery storage, and diesel generator
were investigated using HOMER software. Through an evaluation of the resources available in this
zone and the modeling of various system scenarios, the operational performance of all combinations
was quantitatively examined to determine a feasible and optimum flexible system and to analyze the
benefits/drawbacks associated with each configuration.
The key findings of the study can be given as follows:
• The NPC, COE, Operating Cost, and Renewable Fraction (RF) of $259,354–385,555, 0.218–0.323$/kWh,
2292–22,968$/year and 0%–100% respectively, are realized with wind turbine, diesel generator,
battery, and PV panel sizes of 0–1 kW, 0–20 kW, 0–761 kWh and 0– 76 kW, respectively, for the
off-grid system.
• The optimal system based on minimum NPC and COE has 54-kW PV panels, a 21-kW converter,
a 12-kW generator, and a 484-kWh nominal capacity battery bank.
• Adding battery storage to the off-grid design increases the renewable penetration rate and reduces
the excess energy, in addition to providing continuous power supply at the expense of increasing
the total NPC.
• In the on-grid scenario, the grid serves as a reliable back-up source and consumes the excess
electricity generated, thereby creating a means of earnings (generated income) for the system, which
will help reduce the overall energy cost. The battery storage system, in this case, is eliminated.
• The sensitivity analysis results also show that the COE and NPC for both the grid-connected and
off-grid system are generally within the range of 0.1–0.218$/kWh and $117,598–273,185, respectively.
• The adverse effect of each design on the environment is studied by considering different sell-
back and grid power prices. The majority of the harmful emissions generated are carbon dioxide
(CO2 ). They accounted for between 5963 and 49,393 kg/year of emissions for both on- grid and
grid-independent configurations. This range is subject to the price and quantity of fuel consumed
by the generator and different grid power and sell-back prices.
Sustainability 2019, 11, 4959 23 of 25
Overall, the results obtained in this study show that not only does the proposed optimal hybrid
PV/battery/diesel generation system demonstrate great potential in meeting load demand, it is an
environmentally friendly solution as it can reduce the amount of harmful pollutants and greenhouse
gases that are produced on an ongoing basis. Also, it displayed acceptable performance when varying
the major parameters that directly influence system behavior and design under both on- and off-grid
conditions. This work provides a general methodology for establishing and designing a reliable and
flexible hybrid power system to ensure continuous power supply to consumers under all environmental
conditions and with low impact on the environment (pollution).
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