Feasibility study for power generation off-grid hybrid system in rural area of Ethiopia

Abstract

This paper studies the feasibility of implementing an off-grid hybrid power generation system, combining renewable energy sources (RES) with diesel generators (DG), for rural electrification in Ethiopia, a case study on the Wagesho village. The study employs a comprehensive methodology involving energy resource potential assessment, load demand estimation, system design, optimal component sizing, and economic analysis. The thesis contains the description of load demand for households and community institutions' energy requirements in the village and wind and solar energy resource assessment using data from the NASA database, showing favorable solar energy potential for the village, whereas wind energy potential is found to be inadequate. Afterward, an optimal hybrid system comprising photovoltaic (PV), diesel generator (DG), and battery storage is designed using HOMER simulation software, with 87.6% of power generation from renewable energy and the remaining 12.4% generated power from DG. Economic analysis is done based on the cash flow model determines the net present value (NPV) using national grid electricity tariffs. The minimum electricity selling price calculated for the designed off-grid hybrid system is 10.98 Birr/kWh ($ 0.19 /kWh) which is found to be higher than the grid tariff. However, GoE is planned to achieve 35% of rural electrification through standalone solar home systems and mini-grids. Implementing this project for the calculated price will give the required rate of return for investors and considering the socio-economic benefits the community in the village will get from this project justify the investment.

This paper studies the feasibility of implementing an off-grid hybrid power generation system, combining renewable energy sources (RES) with diesel generators (DG), for rural electrification in Ethiopia, a case study on the Wagesho village. The study employs a comprehensive methodology involving energy resource potential assessment, load demand estimation, system design, optimal component sizing, and economic analysis. The thesis contains the description of load demand for households and community institutions' energy requirements in the village and wind and solar energy resource assessment using data from the NASA database, showing favorable solar energy potential for the village, whereas wind energy potential is found to be inadequate. Afterward, an optimal hybrid system comprising photovoltaic (PV), diesel generator (DG), and battery storage is designed using HOMER simulation software, with 87.6% of power generation from renewable energy and the remaining 12.4% generated power from DG. Economic analysis is done based on the cash flow model determines the net present value (NPV) using national grid electricity tariffs. The minimum electricity selling price calculated for the designed off-grid hybrid system is 10.98 Birr/kWh ($ 0.19 /kWh) which is found to be higher than the grid tariff. However, GoE is planned to achieve 35% of rural electrification through standalone solar home systems and mini-grids. Implementing this project for the calculated price will give the required rate of return for investors and considering the socio-economic benefits the community in the village will get from this project justify the investment.