Abstract
<abstract> <p>In the rural areas of Saudi Arabia, which are not connected to the national grid, electricity is supplied mainly from diesel generators. This is not just a non-renewable energy source, but it has also resulted in environmental damage and may be hazardous to human health. In order to mitigate the problem, integration with a solar photovoltaic system is proposed. A Photovoltaic-Diesel Hybrid System (PvDHS) was designed, analyzed, and optimized based on the climate data of Yanbu, Saudi Arabia. Measured local solar insolation and climate data were used in the Hybrid Optimization Model for Electric Renewables (HOMER) software with different system components and configurations in order to optimize the design that yields the best energy cost. A system consisting of a 3 kW photovoltaic system, a 2 kW diesel engine, a 1 kW converter, and 14 kWh batteries were identified to be the most cost-effective for the average daily electricity demand of 10.5 kWh. The total Net Present Cost (NPC) of this system is ＄17, 800, a reduction of 50% over the ＄35, 770 cost of the diesel-only system. The PvDHS useful electrical energy is found to be ＄0.36/kWh, while the Cost of Energy (COE) of the diesel-only system is ＄0.72/kWh. The system is expected to pay for itself in 2.8 years and reduce CO<sub>2</sub> emissions by 8110 kg per year.</p> </abstract>
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