To provide rural communities with low-cost electricity, innovative off-grid renewable energy producing techniques have emerged. The International Energy Agency estimates that around 45% of Ethiopia’s total population have access to electricity. Nearly 85% of Ethiopia’s urban population has access to public electricity, but this figure is only 29% for the rural population. This study examines the feasibility of using combined photovoltaic (PV)/diesel/battery systems to power a remote rural school in southern Ethiopia. The performance of various hybrid systems was assessed using techno-economic and environmental analyses, and the optimal solution was chosen using the Hybrid Optimization Model for Electric Renewable (HOMER) analytic tool. The evaluation criteria include net present cost (NPC), cost of energy (COE) and emissions. The results indicate that PV/DG/battery hybrid energy system (HES) with a 7.5 kW PV, 7.3 kW DG, 6.60 kW converter, and 11 units of batteries (case I) is the most feasible, optimized, cost-effective and environmentally friendly system among the systems considered. This system has a Net Present Cost (NPC) of $32,019 and a Cost of Energy (COE) of $0.254/kWh, as computed using current equipment values. The optimized system is also environmentally benign, emitting 793 kg of carbon dioxide per year, about 91% less than the PV/diesel combination (worst case IV). Furthermore, sensitivity analysis was performed to examine the impacts of altering factors such as solar radiation, fuel price, and battery minimum state of charge (SOCmin) on system cost and performance. We believe that the information given in this paper will shed light on the current state and future prospects for renewable energy deployment in Ethiopia, and also show that, if policymakers create the necessary investment environment, such projects can be a viable alternative to rural electrification.
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