Economic Feasibility Study of Renewable Energy Systems

This study conducts an economic analysis of energy systems and explains the importance of economic evaluation in the design and optimization of these systems. Energy systems include energy generation, distribution, and utilization sources, which have a significant impact on the economy of countries and societies. The energy system under investigation comprises three types of components: diesel generators, solar panels, batteries, and inverters. The economic analysis was performed for each component and presented as a whole. The results indicated that the highest total life cycle cost (TLCC) is for the solar panel component, amounting to $99,481. In contrast, the lowest TLCC is for the inverter component, which is $16,362. Additionally, the findings revealed that the highest internal rate of return (IRR) is for the inverter, which is 49%, while the lowest IRR is for the solar panel, at 25%. It was shown that the highest levelized cost of energy (LCOE) occurs in the inverter component, which is $0.157 per kilowatt-hour. Conversely, the lowest LCOE was recorded for the solar panel component, at $0.001 per kilowatt-hour. Finally, it was demonstrated that the highest net present value (NPV) for the solar panel is 31%, while the lowest NPV is for the battery, at 6%.

Economic Feasibility Study of Renewable Energy Systems Keywords:

Energy system , renewable energy , economic analysis , hybrid system