I Baniasad Askari - Department of Mechanical Engineering, faculty of Engineering, University of Zabol, Iran
M Ameri - Department of Mechanical Engineering, faculty of Engineering, Shahid Bahonar University, Kerman, Iran

In Iran, the cost of fuel is highly subsidized. If Iran removes the fuel subsidy, the cost of diesel fuel would increase and the PV or Hybrid PV/diesel systems would become moreattractive. In this paper, a study of using PV/diesel/bat power systems, to meet a typical load requirements in a remote region in Kerman,Iran is investigated under four different diesel generator fuel price scenarios. The optimization method which is based on the annual electricaldemand, solar radiation data and rated power of diesel generator consists of two parts: the model of Loss of Power Supply Probability (LPSP) andthe model of the Levelized Cost of Energy (LCOE). Results show that only under subsidized diesel fuel price scenario, diesel-onlysystem has the minimum costs, but by the elimination of diesel fuel price subsidies, the role of diesel generator decreases in hybrid(PV/diesel/bat) energy systems.

Photovoltaic, Solar energy, Diesel generator, Battery