Comparative analysis of the economics and reliability of pure solar energy and utility supply

Keywords: Economic assessment, Monte Carlo, PV systems, Reliability, Solar energy

Abstract

The increasing demand for energy and the need to transition to renewable sources has led to a growing interest in the use of solar energy. This paper conducts a comparative analysis of the economy and reliability of pure solar energy systems and utility supply in a small load area. The energy requirement of the chosen load area was estimated and the appropriate sizing of the solar system was made. The study uses the payback period method to estimate the economy and the Monte Carlo method to estimate the reliability. Load estimation was performed to determine the appropriate solar systems, which were then modelled using PVSyst. The results of the study show that solar energy can be a cost-effective and reliable alternative to utility supply; with a consistent maintenance cost of 4 % per annum, the return on investment was calculated to be 14.1 % per annum at a supply current tariff of ₦ 61.34 per kWh. The payback period showed that the investment in a solar photovoltaic (PV) system can be recovered in six years and nine months (6 years, 9 months). The Monte Carlo simulation demonstrated the reliability of the energy supply in a solar PV system compared to the Nigerian utility supply with the reliability index of the solar system being 93.81 % and that of the utility supply at 55.73 %.

Downloads

Download data is not yet available.

References

L. Al-Ghussain, A. D. Ahmad, A. M. Abubaker, M. A. Mohamed, “An integrated photovoltaic/wind/biomass and hybrid energy storage systems towards 100% renewable energy microgrids in university campuses,” Sustainable Energy Technologies and Assessments, vol. 46, no. 101273, 2021.

M. S. Okundamiya, S. T. Wara, H. I. Obakhena, “Optimization and techno-economic analysis of a mixed power system for sustainable operation of cellular sites in 5G era,” Int’l Journal of Hydrogen Energy, vol. 47, no. 39, pp. 17351-17366, 2022.

M.S. Islam, B. K. Das P. Das, M. H. Rahaman, “Techno-economic optimization of a zero emission energy system for a coastal community in Newfoundland, Canada,” Energy, vol. 220, no. 119709, 2021.

S. Ansari, A. Ayob, M.S.H Lipu, M.H.M Saad, and A. Hussain. “A Review of monitoring technologies for solar pv systems using data processing modules and transmission protocols: Progress, challenges and prospects,” Sustainability, vol. 13, no. 15, p. 8120, 2021.

O. Hafez, and K. Bhattacharya. “Optimal planning and design of a renewable energy based supply system for microgrids,” Renewable Energy, vol. 45, pp. 7-15, 2012.

Renewable Energy Sources and Climate Change Mitigation Summary for Policymakers and Technical Summary, Intergovernmental Panel Climate, Cambridge, U.K., 2011, [Jun 5, 2022] https://www.ipcc.ch/report/renewable-energy-sources-and-climatechange-mitigation/

M. S. Okundamiya, C. E. Ojieabu, “Optimum design, simulation and performance analysis of a micro-power system for electricity supply to remote sites,” Journal of Communications Technology, Electronics and Computer Science, vol. 12, pp. 6–12, 2017.

M. M., Ibrahim, M. A., Badr, and A. El Berry, “Feasibility and performance analysis of grid-tied solar photovoltaic systems using pvsyst simulation package of pharmaceutical factory case study in Egypt,” Int’l Journal of Energy, Environment and Economics, vol. 26, no. 4, pp. 249-267, 2018.

J. Prasanth Ram, T. Sudhakar Babu, N. Rajasekar, "A comprehensive review on solar PV maximum power point tracking techniques, Renewable and Sustainable Energy Reviews, vol. 67, pp. 826-847, 2017.

M. S. Okundamiya, J. O. Emagbetere, E. A. Ogujor, “Modelling and optimum capacity allocation of micro-grids considering economy and reliability,” Journal of Telecommunication, Electronic and Computer Engineering, vol. 9, no. 4, pp. 55-61, 2017.

W. Liu, X. Zhang, Y. Wu and S. Feng, “Economic analysis of renewable energy in the electricity marketization framework: A case study in Guangdong, China” Front. Energy Res., vol. 8, p. 98, pp. 1-14, 2020.

Bloomberg New Energy Finance, Global Trends in Renewable Energy Investment Report, 2018 [Nov. 2, 2022], https://wedocs.unep.org/bitstream/handle/20.500.11822/33382/GTR18.pdf?sequence=1&isAllowed=y

Renewables 2018, Global status report, [Jan 22, 2023], https://www.ren21.net/wp-content/uploads/2019/05/GSR2018_Full-Report_English.pdf

R. Sharma, “Performance evaluation of standalone, grid connected and hybrid renewable energy systems for rural application: A comparative review,” Renewable and Sustainable Energy Reviews, vol. 78, pp. 1378–1389, 2017.

A. Uihlein, D. Magagna, "Wave and tidal current energy – A review of the current state of research beyond technology, Renewable and Sustainable Energy Reviews," vol. 58, pp. 1070-1081, 2016.

N.L. Panwar, S.C. Kaushik, Surendra Kothari, "Role of renewable energy sources in environmental protection: A review, Renewable and Sustainable Energy Reviews," vol. 15, no. 3, pp. 1513-1524, 2011.

D. J. Darling and F. You, “Theoretical limits of photovoltaics,” Energy and Environmental Science, vol. 9, no. 12, pp. 3612–3629, 2016.

B. Parida, S. Iniyan, R. Goic, "A review of solar photovoltaic technologies," Renewable and Sustainable Energy Reviews,” vol. 15, no. 3, pp. 1625-1636, 2011.

P. Zhang, W. Li, S. Li, Y. Wang, and W. Xiao. “Reliability assessment of photovoltaic power systems: Review of current status and future perspectives,” Applied Energy, vol. 104, pp. 822–833, 2013.

C. Lupangu, and R. C. Bansal. "A review of technical issues on the development of solar photovoltaic systems," Renewable and Sustainable Energy Reviews, vol. 73 (C), pp. 950-965, 2017.

N. J. Bakker and R. F. Heijungs, “Monte Carlo simulation and life cycle assessment,” Int’l Journal of Life Cycle Assessment, vol. 7, no. 5, pp. 311–318, 2002.

H. Wang, N. Zhu, and X. Bai, “Reliability model assessment of grid-connected solar photovoltaic system based on Monte-Carlo. Applied Solar Energy,” vol. 51, pp. 262-266, 2015.

United States Agency for International Development. (2019). Nigeria Power Africa Fact Sheet. Retrieved October 17, 2022, from https://www.usaid.gov/powerafrica/nigeria

Published
2023-06-25
How to Cite
Akinloye, B. O., & Uzedhe, G. O. (2023). Comparative analysis of the economics and reliability of pure solar energy and utility supply. Journal of Advances in Science and Engineering, 8(2), 76-82. https://doi.org/10.37121/jase.v8i2.223
Section
Research Articles

Most read articles by the same author(s)