Cost Optimization and Economic Analysis of a standalone Hybrid Renewable Energy Storage System in Malaysia

Abstract

The rapid increase of fossil fuel burning, and scarcity of fossil fuel force the industry to move on to alternative energy resources such as; Photovoltaic Power (PV), Wind Power (WP), and Battery Energy Storage System (BESS). The main purpose of this article is to develop an optimal, cost-effective, reliable standalone Hybrid Renewable Energy Storage System (HRES) for a residential area in Malaysia using HOMER software. Initially, for the base case, four energy resources such as; Photovoltaic (PV), Wind turbine (WT), Battery, and Diesel generator (DG) are considered. After the optimization process, the PV-battery-DG-converter-based system showed the lowest Net Present Cost (RM 3.13M) which is 57.19% and 69% less than the PV-battery-converter and PV-wind-battery-converter system respectively. The analysis also includes the cost summary of the overall system and individual components. The paper also presented the economic analysis including the rate of emission from the energy resources which can influence the realization of the optimal solution