Techno-Economic Analysis of Off-Grid Hybrid Renewable Energy System for Ethiopian Rural Electrification

Abstract

This study presents a comprehensive plan for implementing off-grid hybrid renewable power systems in rural areas of Ethiopia, as a part of the government’s ambitious renewable energy development initiatives. The focus is on leveraging the country’s abundant solar, wind, and micro-hydro power resources through careful planning and analysis. Through field surveys, data collection on local population density, electricity demand, and available renewable energy potential, this study identifies key factors for designing effective off-grid hybrid systems. Utilizing NASA’s wind speed and solar radiation databases, alongside on-site measurements and government data on micro-hydro potential, the study modeled three different hybrid systems using HOMER software. The analysis considers various factors such as net present cost, capital investments, and energy costs to determine the feasibility of each hybrid system. For efficient solar and wind resource scenarios, the cost of energy can be as low as $0.122/kWh, while optimal solar radiation and micro-hydro conditions can lower it to $0.043/kWh. In cases where renewable resources may be limited, hybridizing with diesel generators can provide a cost-effective solution, albeit at a slightly higher cost of $0.14/kWh. Taking into account the sensitivity analyses of Photovoltaic (PV) and diesel prices, this study demonstrates that the proposed off-grid hybrid renewable systems can offer competitive energy costs compared to the current national tariff. With a focus on 180 rural communities within a mile radius, this holistic approach to renewable energy planning holds significant promise for sustainable and affordable power supply in Ethiopia’s rural areas.