Abstract
The national electrification rate of North Korea is extremely low and the situation in rural areas is even worse. Thus, this study designs a virtual electrification project for a rural village in North Pyongan and compares an off-grid energy system and on-grid system in terms of net present cost (NPC) and levelized cost of energy (LCOE) to define the most cost-effective energy system. Using Hybrid Optimization of Multiple Energy Resources (HOMER), this study designs two off-grid systems that apply different types of batteries—lead–acid and lithium-ion energy storage systems (ESS)—and determines the NPC and LCOE of the most cost-effective system. Then, it calculates the NPC and LCOE of grid extension by adding necessary costs required for generation, transmission, and distribution. The result shows that the hybrid energy system (HES) of solar photovoltaic (PV), wind turbines, lead–acid batteries, and diesel generators is the most cost-effective option for the selected location. The range of breakeven grid-extension distance is from 9.69 km to 20.57 km. The sensitivity analysis based on different discount rates shows that a higher discount rate means a shorter breakeven distance. This analysis suggests that deploying an HES is one way to improve the electrification rate for remote and rural areas in North Korea.
Highlights
Energy is an important enabler for sustaining people’s lives and achieving a country’s economic development
This study proves the cost-effectiveness of the off-grid system through the net present cost (NPC), levelized cost of energy (LCOE), and break-even distances computed using Hybrid Optimization of Multiple Energy Resources (HOMER) and cost calculations
After comparing the NPCs and LCOEs of an off-grid system and grid extension, this study finds the range of break-even grid-extension distances
Summary
Energy is an important enabler for sustaining people’s lives and achieving a country’s economic development. Bing and Lee (2017) pointed out the rich renewable resources in North Korea and viewed that the prospect of a renewable energy system is bright in North Korea [13] Considering these points, this study designs a virtual electrification project for a small rural village in North Korea and compares the net present costs (NPCs) and levelized costs of energy (LCOEs) of off-grid systems and grid extension in order to determine the most cost-effective system. This study proves the cost-effectiveness of the off-grid system through the NPCs, LCOEs, and break-even distances computed using HOMER and cost calculations It is the first study focusing on a rural area of North Korea in the context of energy development.
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