Economic feasibility analysis and optimization of hybrid renewable energy systems for rural electrification in Peru

Fabio Rinaldi,Farzad Moghaddampoor,Renzo Marchesi,Behzad Najafi

doi:10.1007/s10098-020-01906-y

Fabio Rinaldi, Farzad Moghaddampoor + Show 2 more

Open Access

https://doi.org/10.1007/s10098-020-01906-y

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Abstract

The majority of rural communities in developing countries (such as Peru) are not connected to the electrical grid. Hybrid energy production from available renewable resources (e.g., wind and solar) and diesel engines is considered as an economically viable and environmentally friendly alternative for electrification in these areas. Motivated by the lack of a comprehensive investigation dedicated to the techno-economic analysis of hybrid systems (PV–wind–diesel) for off-grid electrification in Peru, the present work is focused on determining the optimal configuration of these systems for remote Peruvian villages. Three small communities without access to the grid (Campo serio, El potrero, and Silicucho), which are located in different climatic zones of Peru, have been accordingly selected as case studies. Seven different configurations including single component systems (solar, wind, and diesel) and hybrid ones are considered. While taking into account the meteorological data and load characteristics of the communities along with the diesel fuel’s price and the cost of components, HOMER software is utilized to determine the optimal sizing of the system [resulting in the lowest net present cost (NPC)] considering different scenarios. The obtained configurations are then compared considering other state-of-the-art economic indices [initial capital cost, total annual operating cost, and the cost of energy (COE)], the generation fractions, and the resulting CO2 emissions. The obtained results have revealed that, for all of the investigated communities, the hybrid solar–wind–diesel system is the most economically viable scenario. Considering the latter scenario, the obtained optimal configuration leads to an NPC of USD 227,335 (COE: 0.478 USD/kWh) for Campo serio, USD 183,851 (COE: 0.460 USD/kWh) for El potrero, and USD 146,583 (COE: 0.504 USD/kWh) for Silicucho. Furthermore, employing the optimal configurations a renewable fraction (with respect to the total generation) of 94% is obtained for Campo serio and Silicucho, while the achieved renewable fraction for El potrero is 97%. Moreover, for the case of Campo serio, the resulting CO2 emission of the obtained optimal system is determined to be 6.1% of that of a diesel-only unit, while the latter ratio is determined to be 2.7% for El potrero and 9.9% for that of Silicucho. The optimal configurations that are obtained and presented in the present paper can be utilized as guideline for designing electrification systems (with a minimized cost) for the considered communities and other villages with similar characteristics (population and climatic conditions).Graphic abstract

Highlights

Power access is at the forefront of governments’ preoccupations, in nations in which electricity is essential for certain basic activities such as lighting, refrigeration and running of household appliances (Kanase-Patil et al 2010)
Due to the ever-increasing price of petroleum derivatives on a global scale and concerns regarding the emission of greenhouse gases (GHG) (Najafi et al 2015), remarkable attention has been directed toward green renewable technologies for catering growing energy demand (Mamaghani et al 2017)
The indices which are employed in this study, including net present cost (NPC), cost of energy (COE), the initial capital cost, and the total annual operating cost along with the generation fractions are presented

Summary

Introduction

Power access is at the forefront of governments’ preoccupations, in nations in which electricity is essential for certain basic activities such as lighting, refrigeration and running of household appliances (Kanase-Patil et al 2010). Due to the ever-increasing price of petroleum derivatives on a global scale and concerns regarding the emission of greenhouse gases (GHG) (Najafi et al 2015), remarkable attention has been directed toward green renewable technologies for catering growing energy demand (Mamaghani et al 2017). Renewable energy sources (RES) are abundant in most parts of the world, and, unlike fossil fuels, can be harnessed without any cost for the resource. In this regard, many governments have already started to finance renewable technologies by means of direct grants, loans and tax incentives (Liu et al 2012). Electricity generation in Peru through hydro, wind, solar, geothermal, biomass, tidal power or other RES is subjected to an annual maximum 20% depreciation regime for income tax purposes (Irena 2014)

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