The Effect of Economic Conditions on Optimal Sizing and Feasibility of Hybrid Power System

Abstract

Clean energy-focused hybrid power systems (HPS) can help countries with their sustainable development plans. Optimal sizing of HPS depending on the varying countries’ economic conditions in a reliable and robust strategy can reduce investment risks. This study performed optimal PV-DG-ESS based HPS sizing and feasibility analyses for Antalya, considering Türkiye's last ten years' interest and inflation rates, energy purchase costs, diesel costs, HPS investment, and operating costs. Moreover, the scope of the study is extended by sensitivity analyses on solar radiation, interest, and inflation. The results show that the proposed optimal HPS can reduce electricity purchase costs by up to $143.8 thousand/year and increase the renewable fraction by up to 74%, considering the current economic and climatic conditions. According to the sensitivity analysis, the grid was preferred in scenarios where solar radiation was lower than 5.5 kWh/m2/day. The research revealed the impact of economic conditions on HPS and is expected to guide investors and policymakers.