An empirical investigation to use solar–geothermal hybrid energy system for small towns

Sara Orougi,Momammad Irani,Ali Esmailzade Maghari,Amir Mansour Gol Mohammadi,Hoshang Mohammadi

doi:10.5267/j.msl.2012.08.016

Abstract

c National Iranian Gas Distribution Company, Qom Branch, Qom, Iran A R T I C L E I N F O A B S T R A C T During the past few years, there has been increasing interest to find a replacement for gas consumption in Iranian small towns and cities. The government believes delivering cheap gas to small towns is not economical and can be replaced with recent technological solar-geothermal hybrid energy system. In this paper, we present an empirical study to calculate internal rate of return (IRR) for a small town located near the city of Qom, Iran. We consider three scenarios of population, namely 1000, 1500 and 2000 households and various rates for gas price from 7 to 40 cents. The results show that a gas distribution unit yields 2% to 20% in terms of return. This brings us to conclude that gas distribution for small towns far from major cities is not economically justified for government. Therefore, we need to use alternative methods such as solar-geothermal hybrid energy system. We use TOPSIS method, as a multi criteria decision making approach, to prioritize ten small towns in Qom province and the results are analyzed.

Highlights

The recent jump in oil prices have warned many to look for alternative replacement energies such as solar energy, geothermal or a hybrid of both
We have presented an empirical study to measure the relative importance of developing new sources of energy
We have calculated internal rate of return for estabilishment of gas distribution project in small town located in city of Qom, Iran

Summary

Introduction

The recent jump in oil prices have warned many to look for alternative replacement energies such as solar energy, geothermal or a hybrid of both. Kaygusuz and Kaygusuz (2004) performed an investigation in Turkey and explained that this country was an energy importing nation with more than half of required energy requirements were met by imported fuels, which resulted air pollution in the country Therfore, they sugges using geothermal energy as attractive solution for clean and sustainable energy future for Turkey. As we can see from this literature, there are some benefits of using new sources of energy but the problem is where we should we start using such projects To answer this question we must consider different criteria such as the availability of sun light, temperature, etc. Aydogan (2011), for instance, presented an empirical study for performance measurement model for Turkish aviation firms using the rough-AHP and TOPSIS methods under fuzzy environment. Concluding remarks are given in the last to summarize the contribution of the paper

The proposed model

TOPSIS method

Conclusion