Abstract

Decentralized hybrid energy system is considered as one of the potential sustainable solutions for ongoing global energy transition. Optimization of decentralized hybrid energy systems for better sustainability is a complex problem. It involves multiple issues related to technical, economic and environmental performance. Techno-economic and environmental performance analyses are carried out for a decentralized integrated energy system. As multiple criteria may not simultaneously be the best for a specific combination, a multi criteria decision making approach may be adopted to decide a feasible optimum solution. A detailed methodology integrating techno-economic optimization, environmental impact assessment using Life cycle assessment and multi criteria decision making approach is demonstrated for a remote Indian village. The proposed methodology aims to bridge the gaps of simultaneously obtaining technically efficient, economic and environmentally benign sustainable energy solutions. The results show that though a combination of photovoltaic-wind-diesel generator-Lithium-ion yields the most economical solution for the village, a combination of photovoltaic-diesel generator-Lithium-ion causes the least environmental impacts. The second combination is technically efficient too. The multi criteria decision making approach recommends a combination of photovoltaic-diesel generator-Lithium-ion as the feasible optimum solution with a Cost of electricity $0.067/kWh, excess electricity 14.5%, an environmental impact lesser than 40.5–82%. The sensitivity of the solution is also evaluated using the ELECTRE method. Though the final solution may be site specific for best utilization of available local resources, this methodology is a generic one.

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