A techno-economic analysis of a hybrid energy system for the electrification of a remote cluster in western Saudi Arabia

Remote areas electrification is usually achieved through costly and eco-unfriendly diesel generator (DG) systems with additional cost-obstacles arising through diesel–fuel transportation. Hybridization of renewable energy systems (RESs) with DG units offers a dynamic approach of electrification for the remote areas. A techno-economic study is required to assess the viability of RES in such locations. This research work examines the case of Al-Shumaisi cluster, located in the west of Makkah Province, Kingdom of Saudi Arabia (KSA). This is where the Makkah transport company (MTC) is located. A techno-economic investigation is performed for a commercial load profile of MTC with a hybrid wind/DG/fuel cell/battery/electrolyzer system. In this study, two hybrid configurations are proposed: 1) wind/DG/FC/battery system; 2) wind/FC/battery system. Moreover, another configuration that uses only DG units is also investigated. A comparative study is achieved for the most optimal combination, depending on the gross present cost (GPC) and levelized cost of energy (LCOE) as the essential parameters. Furthermore, other financial parameters like operation and maintenance (O&M) costs, capital costs, and replacement costs are investigated. The well-recognized simulation tool, HOMER (Hybrid Optimization of Multiple Energy Resources) developed by the National Renewable Energy Laboratory, is used to fulfill this study. The sensitivity investigation is carried out by optimally scaling the configuration capacities as well as by monitoring the future changes like weather, load demand, and fuel price uncertainties. The results of the sensitivity investigation and HOMER simulation confirm that the wind/DG/FC/battery hybrid off-grid configuration is the most economic and eco-friendly solution with a total GPC of 7.045 million USD, COE of 0.271 USD/kWh, and CO2 emissions of 566 tons. This signifies the 13.84% reduction of net present cost compared to DG-based units, with a 64.2% decrease of pollutants and zero unmet load.