Economic analysis of a small hybrid power system

Wind and solar based hybrid power systems are more feasible in areas with good potential from both sources. These sources complement each other and allow autonomy if one source is unavailable. Many remote villages of Pakistan are not electrified and the current worsening energy crisis may not allow for these regions to be integrated with the national grid. Even the areas connected to the grid undergo considerable power cuts (as much as 16 hours a day) and there is a need to incorporate abundant renewable energy to the electricity mix of the country. Therefore, a hybrid system including grid, solar PV and wind energy would help eliminate load shedding. However, costs of these systems must be limited to make them economically feasible. Therefore, in this work, we simulate and analyze various combinations of hybrid power systems using HOMER (Hybrid Optimization Model for Electric Renewables) software to compare Net Present Cost (NPC) and Levelized Cost of Energy (LCOE) for available systems.