An economic analysis of a power production hybrid system

This paper analyses the economic viability of a power production hybrid system (photovoltaic-wind-fuel) for domestic supply in isolated areas. A correctly designed photovoltaic-wind-diesel hybrid system enlarges considerably both the diesel generator lifecycle as well as the batteries lifecycle, when referring to the most common used technology (off-grid generator systems). Both benefits need to be correctly accounted in the evaluation process, as maintenance costs are reduced significantly in the case of a PV-wind-diesel solution. This paper aims to develop a new method to evaluate the design of a PV-wind-diesel hybrid system for electricity production. The different types of renewable sources are specifically evaluated in the economical performance of the overall equipment. The developed methodology bases the investment decision on the standard net present value analysis, with sound capital cost evaluation.