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6oladigbolu (2019)

This document summarizes a research article that analyzes the techno-economic feasibility of a hybrid power system to provide electricity to rural areas in Nigeria. The study uses HOMER software to model both off-grid and grid-connected system configurations. Results show that the optimal system for both cases consists of a 12 kW diesel generator, 54 kW photovoltaic panels, 70 battery bank with 484 kWh capacity, and a 21 kW converter. The cost of electricity ranges from $0.1-0.218/kWh and net present cost ranges from $117,598-$273,185 depending on the configuration. CO2 emissions range from 5963-49,393 kg/year for the two systems.
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0% found this document useful (0 votes)
25 views

6oladigbolu (2019)

This document summarizes a research article that analyzes the techno-economic feasibility of a hybrid power system to provide electricity to rural areas in Nigeria. The study uses HOMER software to model both off-grid and grid-connected system configurations. Results show that the optimal system for both cases consists of a 12 kW diesel generator, 54 kW photovoltaic panels, 70 battery bank with 484 kWh capacity, and a 21 kW converter. The cost of electricity ranges from $0.1-0.218/kWh and net present cost ranges from $117,598-$273,185 depending on the configuration. CO2 emissions range from 5963-49,393 kg/year for the two systems.
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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sustainability

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

Sustainability 2019, 11, 4959; doi:10.3390/su11184959 www.mdpi.com/journal/sustainability


Sustainability 2019, 11, 4959 2 of 25

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:

• Temperature and solar resources;


• Wind resource;
• System units;
• Mathematical description;
• Hybrid energy system configuration.
Sustainability 2019, 11, 4959 4 of 25

2.1. Load Analysis


The residential load profile considered in this study was computed based on a realistic electricity
consumption level in Nigeria rural areas. A daily energy consumption of a typical rural house
during the wet season (March–October) and the dry season (November–February) is shown in Table 1.
The energy consumption during these seasons is computed based on the power ratings of common
rural appliances and calculation criteria employed in [25,27], which is further expanded to the overall
load profile of the village. As expected more energy is required during the wet season as compared to
the dry season (November–February). Electricity from the hybrid system was essentially required for
power points, lighting, and other medium and low consumption loads. The daily load demand of
this village was taken as the hourly load in HOMER to obtain the daily (24 h) and monthly energy
consumption profile for the entire year.
The typical hourly load profile of the selected village on a day of wet and dry seasons is illustrated
in Figure 1. Observation of the load profile reveals two important peak demand periods between 06:00
and 09:00 and 19:00 and 21:00, which are both due to normal morning and evening/night activities,
such as lighting, cooking, ironing etc. However, the majority of residential load runs only for a
few hours during the daytime (i.e., 24 h). Lighting load, for example, operates mostly during the
night, while domestic appliance load runs for only a few hours [28]. Based on this, the total annual
average energy consumption and peak load for this location were found to be approximately 200
kWh/day and 25.52 kW, respectively, with a load factor of 0.33 for a sample of 20 households. However,
20 households were sampled to create a reasonable remote rural size sampling. A daily and time-step
random variability of 15% and 10% was specified to improve system reliability and to ensure correct
estimation of the peak load [29].

Table 1. The electricity consumption of a typical house in the rural community.

Wet (March–October) Dry (November–February)


Load Description Power (Watt) h/day Wh/day h/day Wh/day
Television 80 4 320 4 320
Lighting (CFL) 120 8 960 9 1080
Ceiling fan 100 18 1800 0 0
Radio 10 10 120 12 120
Refrigerator 225 24 5400 24 5400
DVD players 17 3 51 3 51
Iron 800 1 800 1 800
Other possible load 110 5 550 5 550

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

2.2. Solar Radiation and Temperature


Figure 2 presents the changes in the monthly solar irradiation data for the selected village as
obtained from HOMER via the NASA satellite database [30] using the coordinates of this location.
The energy output from a PV system depends mainly on the ambient temperature and the amount
of solar irradiation over a specific area at a particular point in time. Hence, the power output is
expected to vary due to the different values for solar irradiation and ambient temperature from one
month to another. The total insolation reaching the surface of the earth depends on sky clarity and
cloudiness conditions, which are very unpredictable [31,32]. Solar energy has a huge deposit in
comparison to other RESs available in Nigeria [15]. The annual mean solar radiation on a horizontal
surface of the site is 5.78 kWh/m2 /day with a sunshine average of 6.5 h per day [14,30]. However, all
months have a radiation intensity above 4.9 kWh/m2 /day with the highest intensity recorded during
April. The monthly average solar irradiation varies between 4.94 kWh/m2 /day and 6.56 kWh/m2 /day.
Based on this, it can be stated the study site exhibits better potential solar radiation than required for
PV application.

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.
Sustainability 2019, 11, 4959 6 of 25

Figure 3. Average monthly temperature for Dukke village [30].

2.3. Wind Speed


Electricity is produced from wind energy whenever wind hits a wind turbine’s blades. The rotating
blade of a wind turbine converts the kinetic energy established by air in motion to rotational
energy, by moving a shaft coupled with a generator; electrical energy is thereby generated via
electromagnetism [34]. The monthly average wind speed displayed in Figure 4 was retrieved from the
NASA database at 10 m above sea level using an anemometer [30].
The annual averaged wind speed is 3.74 m/s, ranging between 2.96 m/s and 4.31 m/s. Vegetation
cover and topographic features are among the factors that cause variation in the wind patterns
observed [35]. Once the average monthly wind speed data is entered, HOMER will create a synthetic
hourly value for a year from this data with four other statistical variables, including the auto- correlation
factor for 1.00 h (taken as 0.85), the Weibull shape factor (k = 2), and the hour of peak wind speed and
the diurnal pattern strength of 15 h and 0.25, respectively [36].

Figure 4. Monthly average wind speed for Dukke village [30].


Sustainability 2019, 11, 4959 7 of 25

2.4. Diesel Fuel


According to the National Bureau of Statistics, the current diesel fuel price in Nigeria is $0.63 per
liter [37]. It is worth noting that variation in the diesel price strongly depends on the foreign currency
exchange rate coupled with the Federal Government of Nigeria’s inconsistent policy on fuel subsidies.
However, diesel prices may likely be higher than the normal price in some parts of the country because
of the poor state of the roads and the distance of these places from fuel depots.

2.5. System Detail and Component Specification


The HPS under study is made up of five major components which are comprised of PV, batteries,
a power converter, a wind turbine, and a diesel generator. All feasible scenarios were adequately
simulated and analyzed. Each system design is made up of two parts: the off-grid design and the
grid-connected system. The renewable energy system serves the load according to the excess electricity
stored in the battery bank, which is useful in the event the RESs are unable to adequately meet
load demand under the off-grid scheme. The diesel generator operates as a back-up power source.
Conversely, in the on-grid scenario, the power supply from the utility grid is responsible for meeting
the load requirements when the RESs cannot meet power load demand, in addition to effectively using
the excess electricity. In both scenarios, the accurate and best integration of system components is
anticipated to discover the necessary and achievable benefits.
The diesel generator is employed in the supply of power to the load whenever the minimum
load ratio is 25% or above, as recommended by the majority of generator manufacturers, in order
to increase the generator’s lifespan, in addition to reducing the number of pollutant emissions [38].
Several parameters were varied in the proposed design in order to ensure the criteria proposed for
flexible configuration were realized, in addition to investigating the operational behavior of the design.
However, the optimal configuration is anticipated to perform better for any variation that arises during
the project’s operational lifetime. Detailed information on input parameters for individual components
along with their lifespan is specified. The model specification and costs of the main components of
the HPS are presented in Table 2. The grid system, on the other hand, is modeled in HOMER as a
component from which the HPS can buy AC power and to which it can sell excess AC power.
The grid power price, which refers to the amount the utility grid charges for purchased energy,
is $0.1/kWh: at US$1 = N360.5 for residential users [5]. The cost of energy in Nigeria is fixed by the
distribution companies.
However, the sell-back price, which represents the price the national grid pays for electricity sold to the
electric grid, is expected to be higher than the grid power price. This increase is a result of government
financial aid and feed-in-tariff policies, which are usually provided to accelerate renewable energy technology
investment. Wind power and solar PV are awarded a lower per kWh price due to their generation cost [39].
According to Nigeria’s renewable energy feed-in-tariff plan (REFIT), the tariff shall be reviewed every three
years. This implies that the resulting price per kWh will either increase or decrease based on the levelized
cost of energy and long-term marginal cost [5]. In this study, two different scenarios, including an off-grid
and grid-connected design, were evaluated in addition to performing a comprehensive sensitivity
analysis to justify the level of adaptability required to achieve an optimum configuration, making
several changes to variables that directly influence system cost and operational behavior.

Table 2. Technical and economic details of different components.

Component Parameters/Reference Specification


1. PV panel [24,29]
Efficiency at standard test condition 13%
Capital cost $1500/kW
Replacement cost $1000/kW
Operating and maintenancecost $10/kW/year
Sustainability 2019, 11, 4959 8 of 25

Table 2. Cont.

Component Parameters/Reference Specification


2. Wind turbine [40,41]
Rated capacity 1 kW
Capital cost $1200/unit
Replacement cost $1200/unit
Operating and maintenance cost $110/unit/year
3. Battery [42]
Nominal voltage 6V
Capital cost $1100
Cost of replacement $1100
Operating and maintenance cost $10/year
4. Converter [43]
Capital cost $550/kW
Cost of replacement $450/kW
Operating and maintenance cost $5/kW/year
5. Diesel generator [25]
Capital cost $500/kW
Replacement cost $450/kW
Operating and maintenance cost $0.025/kW/h

2.6. System Constraints and Dispatch Strategy


A dispatch strategy is essential for any system that comprises one or more generators and a battery
storage system, which controls the charging of the battery [36]. The dispatch influences the life-cycle
cost via both the battery lifetime and fuel consumption [40]. Two categories of dispatch strategies can
be modeled in HOMER software: load following (LF) and cycle charging (CC). Under the LF strategy,
the wind turbine and PV power source charge the battery while the generator operates to serve the
load. Under the alternative strategy (i.e., CC strategy), the generator runs at its peak rated power to
meet the load demand with surplus energy used for charging the battery. Due to its environmental and
economic benefits [21], the LF strategy was employed in the analysis and system design of parameters
in the present study.
The proposed system’s operating lifetime was taken to be 20 years. Constraints are prerequisites
that must be satisfied by the system, otherwise, HOMER discards those systems that fail to fulfill the
specified constraints. To ensure continuous electricity supply in the event of an unexpected decrease
in renewable power output or a sudden spike in load demand, the operating reserves, which are a
function of both the renewable output and load, were set at 10% of load in current time step, 50% and
25% were specified for the wind and solar power output. The higher reserve specified for renewable
energy output is due to its inherent unpredictability [13]. The maximum unserved load was assumed
to be 0%, while a range of 0% to 100% was considered for the maximum renewable fraction.

2.7. Mathematical Model

2.7.1. PV and Temperature Model


PV panels are made up of solar cells in a series or parallel connection and are utilized in a PV
system to generate and supply power for different applications. In general, the PV system output
power depends on the cell temperature and amount of solar irradiation, as well as the geographical
characteristics of an area [44]. In HOMER, PV output power is calculated as follows [42]

GT
!
PPV = YPV ƒPV [1 + αP (TC − TC,STC )] (1)
GT,STC
Sustainability 2019, 11, 4959 9 of 25

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.

2.7.2. Wind Turbine Modeling


Wind energy is converted into mechanical power via a wind turbine and then transformed into
electrical energy [25]. However, it is necessary to evaluate the past wind power intensity (W/m2 ) to
examine the economic feasibility of a location since the amount of energy captured by the turbine rotor
is determined by the wind speed’s cubic power. The output power of the wind turbine system is thus
calculated as follows [35]: !
ρ
PWTG = .P (2)
ρ0 WTG,STP
where ρ0 refers to the air density at standard temperature and pressure (STP) (1.225 kg/m3 ), and
PWTG,STP is the power output of the wind turbine at STP (kW).

2.7.3. Modeling of Diesel Generator Consumption


Renewable energy sources are highly dependent on environmental conditions, which greatly
influence power generation levels. Hence, they are integrated into a conventional power generation
system to supply continuous power output [43]. A diesel generator functions as an uninterrupted
source of energy in different hybrid energy systems and is characterized by its efficiency and fuel
consumption [19]. In this study, the diesel generator system is expected to feed the load and not to
charge the battery based on the dispatch strategy employed. In HOMER, a fuel curve and linear
correlation are employed while computing fuel consumption. Fuel consumption is the quantity of fuel
utilized to generate electricity and is obtained from [44]:

Fd = (a·Td + b·Pd ) (3)

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.

2.7.4. Battery Storage System


The battery is a storage system required for storing electric power for reliable and efficient
utilization of unpredictable RE systems. However, in most HPSs, battery energy storage is expected to
start operating and supply energy stored at the time when the power output level of the RE generation
system is low and unable to sufficiently serve the external load demand. The most commonly used
technology for the battery in an HPS is lead-acid batteries. However, lithium-ion batteries are currently
dominating the energy storage device (ESD) market for decentralized RE systems due to their extended
lifecycle and high charge/discharge efficiency [46]. The storage capacity of the battery is computed
based on autonomy days and demand as follows [47]:

EL AD
CBat = (4)
ηinv DODηbat
Sustainability 2019, 11, 4959 10 of 25

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%).

2.8. Economic Analysis and Modeling


Economics plays a fundamental role in HOMER by either minimizing or searching for the system
with the least net present cost (NPC) [36]. Current inflation and interest rates in Nigeria are 11.25% and
13.5% [48], respectively. With regards to this, HOMER applies the equation below to find the annual
real discount rate (or real interest rate):
i′ − f
i= (5)
1 + f
where idenotes real interest rate, ƒ refers to the expected inflation rate, and i’ denotes the nominal
discount rate.

2.8.1. Net Present Cost (NPC)


The NPC consists of the initial capital cost, replacement cost, fuel cost, cost of grid electricity
purchased, as well as the salvage and operation and maintenance costs. NPC proved to be more
reliable as an economic variable due to its mathematical foundation than the levelized electricity cost,
which is somewhat arbitrary [49]. The following equation is used to compute NPC [41]:

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

2.8.2. Cost of Energy (COE)


The COE is the average cost per kWh of effective electricity generated by the system. HOMER
applies the following expression to evaluate COE [36]:

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.

2.9. Environmental Analysis and Modeling


The harmful greenhouse gas emissions in the hybrid generation system result from the quantity
of fuel in-take by the diesel generator and utility grid power consumed. In this study, CO2 emissions
are used to examine the environmental impact of the HPS.

CO2 Emissions Modeling


The total amount of CO2 emitted by any hybrid generation system will depend on whether the
system includes non-renewable energy sources or not. HOMER computes the emissions factor for
individual pollutants before simulation and multiplies this factor by the net annual fuel consumption
to determine the annual emissions of each pollutant at the end of the simulation [35]. The equation for
computing the amount of hybrid system CO2 emissions is given as [12]:
Sustainability 2019, 11, 4959 11 of 25

tCO2 = 3.667 × mf × HVf × CEFf × Xc (9)

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.

3. Results and Discussion


The HOMER pro software tool is employed in this study to determine the adaptability of the
HPS operating in both on-and off-grid modes, as well as designing a hybrid system for optimum
use of energy resources as per the study’s location, Dukke village, Nigeria, as detailed in the design
procedure flowchart presented in Figure 5. Different cases were studied with regards to the techno-
economic possibility of the system. The proposed HPS is expected to undergo many changes including
RE availability level, load growth, price of diesel, generator minimum load ratio, grid power and
sell-back prices, and component cost over the project period of 20 years. Furthermore, the system
should be able to adapt to and operate effectively under the two scenarios given, in addition to any
variations in major parameters that directly influence the operational behavior of the HPS.

Figure 5. System flowchart technique for the two scenarios.

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.

3.1. Off-Grid Hybrid Energy System


In this design, the standalone system comprises a diesel generator (DG), wind turbine, PV
arrays, batteries, and a converter. These components are interconnected together to meet the
energy consumption requirement of the system as the display in Figure 6. The simulation of
four different scenarios with various integrations of power sources was performed by HOMER; namely:
PV/wind/battery (System 1), PV/DG (System 2), PV/DG/battery (System 3), and DG-only (System 4).
Based on the dispatch strategy employed, the RESs are the main sources of the HPS. The diesel generator
is operated as a back-up generation source whenever the RESs and/or the storage system are incapable
of meeting the energy demand of the load. Several component combinations are selected by HOMER
as the optimum system regarding NPC and COE, as reported in Table 3. The result indicates that the
optimum configuration (System 3) consists of a 21-kW power converter, 54 kW PV, 70 battery group
(484 kWh nominal capacity battery bank), and a 12-kW diesel generator. The NPC, COE, Operating
Cost, and Renewable Fraction (RF) are $259,354–385,555, 0.218– 0.323$/kWh, 2292–22,968$/year, and
0%–100% respectively, when the capacities of the wind turbine system, diesel generator, battery storage,
and PV panel are 0–1 kW, 0–20 kW, 0–761 kWh, and 0–76 kW, respectively. The result also shows that
the optimum system reduces CO2 emissions by 51,123 kg/year in comparison to the diesel-only system
(System4) used in the current situation as shown in Table 4.

Figure 6. Schematic diagram of an off-grid HPS.

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.

Table 3. Summarized optimization results of multiple optimum configurations.

Parameters/Components Unit System 1 System 2 System 3 System 4


Wind turbine kW 1 0 0 0
Photovoltaic kW 75 28 54 0
Diesel generator kW 0 18 12 0
Converter kW 25 11 21 0
Battery Qty 110 0 70 0
Operating cost $/year 2382 16,461 5172 22,968
Annualized cost $ 17,580 19,986 15,861 23,579
Net present cost $ 287,466 326,799 259,354 385,555
Cost of energy $/kWh 0.243 0.275 0.218 0.323
PV production kWh/year 122,626 46,210 87,661 0
Wind turbine production kWh/year 223 0 0 0
Generator production kWh/year 0 55,567 8152 76,369
Average total production kWh/year 122,849 101,778 95,812 76,369
Average excess electricity kWh/year 30,697 26,886 5741 3477
Renewable fraction % 100 23.7 88.8 0
Battery storage depletion kWh/year 223 0 272 0
Average generator hours h/year 0 6570 1301 8760
Specific fuel consumption L/kWh 0 0.283 0.279 0.286

Table 4. Pollutant emissions produced by the optimum hybrid system.

Pollutant Emissions Value (kg/year)


Carbon dioxide 5963
Carbon monoxide 37.2
Unburned hydrocarbons 1.64
Particulate matter 0.223
Sulfur dioxide 14.6
Nitrogen oxides 35.0

Figure 7. Monthly average solar PV/diesel generator hybrid-electric production.

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.

Battery Storage System


The inclusion of battery storage in any off-grid system can increase the renewable penetration rate
and reduce excess energy at the expense of increasing the COE and capital cost. Furthermore, batteries
are used to support load requirements during times when the output power of RESs is insufficient,
thereby improving system reliability as well as mitigating the variability associated with the RE system.
Battery autonomy refers to the periods of time (in hours) during which the battery can adequately
supply the load without needing to recharge. In this paper, one string of battery storage forms 2.49 h of
autonomy with a nominal capacity of 34.6 kWh. In the charging and discharging process of the battery,
the use of a traditional control method leaves some parameters out of the user’s control. This results in
the aging of the batteries in addition to decreasing the battery life cycle thereby causing irreversible
battery damage. However, the introduction of other control methods such as model predictive and
fuzzy logic controls in battery charging management for renewable energy systems can reduce the
charging time, avoid deep discharging through the maintenance of the state of charge (SOC) above
50%, as well as protect the battery from wear and tear [51] The monthly average SOC of the battery
Sustainability 2019, 11, 4959 15 of 25

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.

Figure 9. Percentage of battery monthly state of charge (SOC).

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.

3.2. Sensitivity Analysis


In this part, different sensitivity analyses were conducted to investigate system behavior while
changing some variables that influence off-grid system performance in order to determine whether the
system would meet load requirements.

3.2.1. Sensitivity Analysis of Generator Parameters

Generator Minimum Load Ratio


The minimum ratio of load on the generator set is the least load allowed on it, as a percentage of
its rated output. Specifying a minimum load will simply prevent the generator from running at too
low a load rather than preventing it from being turned off [35]. This variable is of great importance
as some manufacturers suggest the generator set should be shut off under a certain load. In view of
this, the generator load minimum ratio is assumed to vary from 10% to 40% in order to evaluate its
economic and environmental impact. The variation in NPC, COE, and CO2 emissions for different
minimum load ratios is presented in Figure 10. At 10%, the NPC is $260,634, COE is $0.219/kWh, and
CO2 emissions are 5154 kg/year. However, the NPC is reduced by 0.65% and COE by 0.46%, while
CO2 increases by about 41% based on a generator minimum load of 40%.
The results reveal the direct impact of varying the minimum load ratio on the system cost and
environment, as well as on generator working performance. However, operating the generator at
low load levels for an extended time can impede its performance. The most common consequence
associated with this is wet stacking, which is a black-oil liquid that can leak from exhaust joints as a
result of the generator working under low or no load conditions for long. This problem can lead to
system failure and decreased the operational lifespan of the generator [52].
Sustainability 2019, 11, 4959 16 of 25

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

259200 0.2182 5500

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.

Generator Fuel Price


The price of diesel continues to fluctuate with exchange rate fluctuations in the global market.
However, remote areas are likely to experience higher and more varied diesel prices, considering the
cost of transportation and other costs associated with using diesel fuel in such areas. In this regard, the
fuel price is assumed to range from $0.4/L to $1.2/L in order to investigate its impact on CO2 emissions
and the overall system cost. It can be seen in Figure 11 that both NPC and COE increase from $210,511
to $272,799 and from $0.177/kWh to $0.23/kWh, while CO2 emissions drop from 25,244 kg/year to
1692 kg/year when the fuel price rises from $0.4/L to $1.2/L. The variation that occurs with these
parameters due to rises in diesel prices can be explained by the fact that the hybrid system tends to rely
more on renewable energy components to meet load demand, thus reducing the hours the generator is
in operation, which directly relates to the low CO2 emissions and high NPC and COE.

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

3.2.2. Impact of Load Demand Growth


The electrical energy from a power system depends on the load demand that should be met all
the time. In this section, based on economic and population growth rates in remote rural areas in
Nigeria [53], load demand was assumed to increase by 0.5% per year over the project’s lifetime in
order to investigate its impact on greenhouse gas emissions and overall system cost, as illustrated in
Figure 12. Besides, load demand generally changes from time to time. It is evident from Figure 12
that the NPC and COE increased by 10.7% and 0.9%, respectively, whereas CO2 gas emissions were
reduced by 24.3% when the load demand rose from 200 kWh/day to 220 kWh/day. The result shows
that the higher the load demand of an electricity consumer, the higher the energy production; hence,
the need to update the capacity of different components of the hybrid system in order to raise the
overall electricity generation at the expense of increased NPC. In this case, the PV capacity increases
more than that of the diesel generator due to the high level of global solar radiation at this location,
which explains the reduction in CO2 emissions recorded.

NPC ($)
COE ($/kWh)
CO2 (kg/yr)

290000
6000
0.2200
285000
5800

280000 0.2195 5600

5400
275000
0.2190 5200
270000
5000

265000 0.2185 4800

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.

3.3. On-Grid Hybrid Systems


The optimum configuration is connected to the utility grid; hence, all component combinations
are expected to remain unchanged to show the level of adaptability of the proposed design, as shown
in Figure 14. Generally, component incompatibility and investment cost are the main factors that
affect the transition that occurs between standalone and grid-connected systems. However, changing
component specifications at the point of inserting an electric grid to an existing off-grid configuration
can lead to a redesign of the entire system, thereby making the system economically and technically
infeasible, as well as hampering the establishment of a rural electrification framework due to the
anticipated changes in the system architecture and overall cost. A sensitivity analysis was conducted
to examine the operational performance of the designed system when changing the key parameters
that directly influence the behavior of any grid-connected system.
Sustainability 2019, 11, 4959 19 of 25

Figure 14. Schematic diagram of a grid-connected HPS.

3.3.1. Sensitivity Evaluation


On-grid system operational response to changes in major parameters, including load demand,
fuel price, as well as grid power and sell-back prices, are studied and elucidated in this part. The effect
of varying the grid power price against the average scaled load (+0.5% per year) at various sell- back
and fuel prices on various system configurations is presented in Figure 15. The outcome shows the
impact of these variables on the optimum system design. Also, our results clearly show that the
optimum system, in this case, consists of PV, a grid, and a diesel generator, which corresponds to the
optimum solution in the off-grid scenario except that the battery bank is replaced by the grid, mainly
for economic reasons as well as to ensure reliable and continuous backup operation.
Furthermore, the on-grid configuration prefers to sell back the surplus power to the utility grid
rather than store it in the storage system (batteries) in order to minimize the COE and the investment
cost. According to Figure 15a–c, two component combinations are identified as optimal choices by
HOMER: the PV/Grid and DG/PV/Grid systems. The PV/Grid configuration tends to be the optimal
system choice only if the grid power price is less than $0.28/kWh and the sell-back and diesel prices
rise by up to $0.26/kWh and $0.83/L, respectively, while the average load demand keeps increasing.
This system configuration is not completely reliable as it is only an optimal choice with limited
changes in the major parameters. However, the system depends in a major part on the optimal hybrid
DG/PV/Grid system whenever the sell-back price exceeds the grid power price and the fuel price
increases to more than $0.83/L. Further increases in the fuel, sell-back, and grid power prices have no
significant impact on the optimum system, as the hybrid configuration remains the best choice among
all other hybrid combinations irrespective of any future changes that could affect the system during its
operational lifetime.
Therefore, the optimum design of a grid-connected PV/diesel generator is considered to be the best
choice under all scenarios, in addition to meeting the design criteria by being a flexible configuration
under all operating conditions. This finding underlines the high adaptability of the proposed hybrid
system under grid-connected and off-grid conditions.
Sustainability 2019, 11, 4959 20 of 25

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.

3.3.2. Economic Analysis of NPC and COE Impact


The variation in the value of electricity prices (sell-back and grid power prices) significantly affects
the system energy cost and total NPC. The effects of changing the grid power price alongside the
sell-back price are presented in Figure 16. As indicated in this figure, increasing the sell-back price for
the same grid power price would result in decreased NPC and COE being generated by the hybrid
system. For example, in the simulation conducted for sell-back prices of $0.04 and $0.1 per kWh, the
COE and NPC are found to be respectively $0.0983/kWh and $0.0133/kWh, and $117,735 and $71,313.
Sustainability 2019, 11, 4959 21 of 25

(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

Sellback price ($/kWh) Sellback price ($/kWh)

(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

Sellback price ($/kWh) Sellback price ($/kWh)

(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

Sellback price ($/kWh)

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.

3.3.3. Environmental Analysis of Carbon Emissions


Figure 17 displays the amount of CO2 emissions for various sell-back and grid power prices.
From the results, it is obvious that the CO2 emissions increase when the grid power price increases.
For instance, in the case of a sell-back price of $0.18/kWh, the CO2 emissions increased by 96.4% when
the grid power price increased from $0.1/kWh to $0.5/kWh. The increase in CO2 is due to the fact that
the system prefers to supply the load through the hybrid system (which includes a combination of
renewable and conventional energy sources) rather than via the available grid system. Operating the
conventional diesel system, in this case, will lead to high combustion of fossil fuel, resulting in the
emission of tons of greenhouse gases that harm the environment; hence the large quantity of CO2
emissions produced. However, a rise in the sell-back price will lead to the system relying more on the
grid system to meet its load requirement.
Sustainability 2019, 11, 4959 22 of 25

Sell back price =$ 0.06/kWh Sell back price =$ 0.09/kWh


Sell back price =$ 0.12/kWh Sell back price =$ 0.15/kWh
Sell back price=$ 0.18/kWh
60,000

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).

Author Contributions: Conceptualization, J.O.O.; Methodology, J.O.O.; Resources, Y.A.A.-T.; Supervision,


M.A.M.R. and Y.A.A.-T.; Writing—original draft, J.O.O.
Funding: This research received no external funding.
Acknowledgments: The support of the deanship of graduate studies at King Abdul-Aziz University for
postgraduate scholarship is highly appreciated.
Conflicts of Interest: The authors declare no conflicts of interest.

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