Techno-economic analysis of PV/diesel/battery hybrid system for rural community electrification: A case study in the Northern West Bank

Moien A. Omar

Energy, 2025, vol. 317, issue C

Abstract: This study evaluates the technical and economic feasibility of implementing an off-grid energy system for a rural community in the Northern West Bank using the Hybrid Optimization of Multiple Energy Resources (HOMER) software. Three energy systems are analyzed: diesel-only, PV/Battery, and PV/Diesel/Battery hybrid systems. The results indicate that the cost of energy (COE) for a diesel-only system is 0.672 USD/kWh, while a PV-only system achieves a COE of 0.33 USD/kWh. In the hybrid system, the PV system covers 6209 kWh of annual demand with a COE of 0.26 USD/kWh, while the diesel generator covers 798 kWh annually with a COE of 0.44 USD/kWh. Combined, the hybrid system achieves an overall COE of 0.285 USD/kWh, reflecting a high renewable energy fraction 88.6 % due to the lower COE of PV compared to diesel. In terms of reliability, the PV/Battery system requires oversized components, resulting in high costs and excess unused energy, yet still experiences a capacity shortage of 5 %. In contrast, the PV/Diesel hybrid system integrates two energy sources operating in parallel, significantly enhancing reliability while maintaining cost-effectiveness. The study also examines the feasibility of transitioning from diesel-only systems to PV/Diesel hybrid systems. By adopting the hybrid system, customers would pay 78 % of their previous diesel electricity tariff, enabling investors to recover their capital in 7.58 years and earn USD 44,698 in profits by the project's end. Additionally, the hybrid system reduces annual CO2 emissions by 8.262 tons, establishing it as an environmentally and economically sustainable energy solution for rural electrification.

Keywords: Feasibility analysis; Hybrid PV/Diesel/battery power system; Optimization; Net present cost; Cost of energy; Sensitivity analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:317:y:2025:i:c:s0360544225004128

DOI: 10.1016/j.energy.2025.134770

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