Solar PV diesel literature review

[1] O. Okundamiya, M. S. C. E., https://files.zotero.net/545557261/Simulation%20of%20an%20Isolated%20Solar%20Photovoltaic-Fuel%20Cell%20Hybrid.pdf “Simulation of an Isolated Solar Photovoltaic-Fuel Cell Hybrid System with Hydrogen Storage for Mobile Telecommunication Sites.” 2017

power supply to isolated telecommunication sites
hybrid of PV and fuel cell storage system
simulation result gives present worth of ₦77,292,020, ₦40 per kWh energy cost, 13.1% RoI and 12.4% IRR compared to traditional diesel only

[2] S. Bahramara, M. P. Moghaddam, and M. R. Haghifam, “Optimal planning of hybrid renewable energy systems using HOMER: A review,” https://www.sciencedirect.com/science/article/pii/S1364032116301496 Renewable and Sustainable Energy Reviews, vol. 62, pp. 609–620, Sep. 2016.

most considered uncertainties in sensitivity analysis are Wind speed, solar radiation, component cost, fuel price, and primary load

other research have considered effects of real interest rate and grid electricity price aside the most popular variables

two approaches identified for evaluating uncertainties and optimal sizing of hybrid renewable energy systems (HRES) are robust planning (scenario technique) and risk of planning

robust plan is the scenario that give least NPC among others

in base scenario and other scenarios, risk of planning is evaluated through NPC

[3] A. A. Eberhard and World Bank, Independent power projects in Sub-Saharan Africa: lessons from five key countries. 2016. Book

investment needed for low carbon technologies
adequate electricity as economic booster for Sub-Saharan Africa

[4] S. Sen and S. Ganguly, “Opportunities, barriers and issues with renewable energy development – A discussion,” https://www.sciencedirect.com/science/article/pii/S1364032116306487 Renewable and Sustainable Energy Reviews, vol. 69, pp. 1170–1181, Mar. 2017.

Policy as drivers for renewable energy development
considers barriers and opportunities of RE development
how RE can bring about social and economic development

[5] C. Serrano-Cinca, B. Gutiérrez-Nieto, and N. M. Reyes, “A social and environmental approach to microfinance credit scoring,” https://files.zotero.net/17919127891/Serrano-Cinca%20et%20al.%20-%202016%20-%20A%20social%20and%20environmental%20approach%20to%20microfinanc.pdf Journal of Cleaner Production, vol. 112, pp. 3504–3513, Jan. 2016.

Proposes consideration of social and environmental aspects of loan granting
multi-criteria evaluation of decision making micro-financing of projects

[6] L. Olatomiwa, S. Mekhilef, A. S. N. Huda, and O. S. Ohunakin, “Economic evaluation of hybrid energy systems for rural electrification in six geo-political zones of Nigeria,” https://www.sciencedirect.com/science/article/pii/S0960148115003377 Renewable Energy, vol. 83, pp. 435–446, Nov. 2015.

costly grid extension to rural areas in Nigeria

technology combination include wind, solar, diesel generator and battery

research simulation results focus on NPC, CoE and renewable fraction

at 2014 diesel price of $1.1 and $1.3/L, hybrid of PV/diesel/generator shows optimum result

uses assumed PV cost of 3000 and $3200 per kW and lifetime of 20 years, 90% derating factor and 20% ground reflection

uses initial cost of AC diesel generator (25 kW) of $11,324, and a replacement cost of $10,200 while O&M cost $0.500/hr was used. The operating lifetime of diesel generator taken as 15,000 h with load ratio of 30%

COE of $0.547/kWh at $1.1/L and $0.547/kWh at $1.3/L were obtained for PV/diesel/Battery hybrid system against $1.075/kWh for diesel only

[7] M. S. Adaramola, S. S. Paul, and O. M. Oyewola, “Assessment of decentralized hybrid PV solar-diesel power system for applications in Northern part of Nigeria,” https://www.sciencedirect.com/science/article/pii/S0973082613001130 Energy for Sustainable Development, vol. 19, pp. 72–82, Apr. 2014.

Assumption used include diesel price $1.1/L (before or by 2011) and annual mean global solar irradiation of 6.00kWh/m2/day
3% interest rate was used *hybrid of solar, DG and battery was considered
the hybrid system proves to be most economically viable solution with LCOE range of 0.348-0.378 $/kWh, subject to prevailing interest rate *Cost DG only varies from $0.417 and $0.423 per kWh
It also considers sensitivity along interest rate and cost of PV ($2400 to $4800 per kW)
LCOE results were also compared with existing electricity tariff to check grid parity
research focused on residential and small commercial users of semi-urban and rural areas of Northern Nigeria
daily load data from a secondary source dated back before 2011 was used
PV panels (mono-crystalline) from Canadian Solar with cost of was used
cost of PV was taken as $3200/kW, initial installation cost of $40/kW, replacement cost of $3200/kW, yearly O&M of $10 were assumed
average derating factor of temperate region was taken to be 0.75
20% ground reflectance
Two DGs with assumed capital cost of $175.1/kW (100kW) and $193/kW (160kW) were taken and 10% installation cost
Battery assumption include "a Surrette 6CS25P model with a nominal capacity of 1156 ampere-hours (Ah), cell voltage of 6 V, lifetime throughput of 9645 kWh, efficiency of 80% and a minimum state of charge of 40% (Rolls Battery) was selected". Also capital cost of $1200 and maintenance cost of $10/year were assumed.

[8] A. V. Anayochukwu and E. A. Nnene, “Simulation and Optimization of Hybrid Diesel Power Generation System for GSM Base Station Site in Nigeria,” https://files.zotero.net/7484871033/Anayochukwu%20and%20Nnene%20-%202013%20-%20Simulation%20and%20Optimization%20of%20Hybrid%20Diesel%20Power.pdf Electronic Journal of Energy & Environment, vol. 1, no. 1, pp. 37–56, Apr. 2013.

July 2012 local diesel pump price of $1.0/L used
PV initial, replacement and annual O&M costs used are $2000/kW, $1800/kW and $100
18kW Diesel gen. costs; $13,000 for both initial and replacement as well as $2.5/hr O&M
component annual cost comparison
used annual cost of operation and NPC for economic comparison of the two scenarios (diesel only and the hybrid systems)
used 6% interest rate
1.77 years discount payback period with 62.9% ROI from simulation result (Metric table)

[9] O. O. Ajayi and O. O. Ajayi, “Nigeria’s energy policy: Inferences, analysis and legal ethics toward RE development,” https://www.sciencedirect.com/science/article/pii/S0301421513004503#! Energy Policy, vol. 60, pp. 61–67, Sep. 2013.

reviews nation's energy policy statement of vision 20:2020
multiple taxation and lack of economic incentives among barriers to RE development
proposes legal reform such as investment laws and land use acts in support of RE

[10] S. O. Oyedepo, “On energy for sustainable development in Nigeria,” https://www.sciencedirect.com/science/article/pii/S1364032112001037 Renewable and Sustainable Energy Reviews, vol. 16, no. 5, pp. 2583–2598, Jun. 2012.

factors for energy sustainability in Nigeria addressed
promotion of renewable energy resources for private sector
energy policy outlook

[11] K. Branker, M. J. M. Pathak, and J. M. Pearce, “A review of solar photovoltaic levelized cost of electricity,” Renewable and Sustainable Energy Reviews, vol. 15, no. 9, pp. 4470–4482, Dec. 2011.

addressed some misconceptions in LCOE calculation for PV

economic barrier as primary impediment to RE technology adoption in the society

defines clearly the concept of grid parity

PV grid parity as a function of local electricity prices, PV system component cost and geographical attribute

wrong LCOE reporting, strong effects on decision and policy making processes

wide and holistic sensitivity analysis of critical variables for decision making

most cost of electricity from other power plants from conventional sources are over estimated due to volatility, administrative duties and or systems upgrade - making electricity cost fixed and higher than actual generation cost

LCOE generally exclude risk and financing methods

accuracy of assumptions in LCOE estimation very critical to energy technology accurate lifetime assessment

PV system over-sizing, inadequate input assumptions and high LCOE estimates

main assumptions: discount rate, average system price, system lifetime, degradation and financing method
keeping other costs constant results indicates direct proportionality between interest rate and LCOE (i.e. LCOE drops with I.R drop and vice versa)
keeping I.R and PV cost constant, LCOE changes along varying diesel prices and GHI.
At higher I.R. and same PV cost, LCOE also changes along varying diesel price and GHI. Lower interest rate proves better

[12] M. S. Adaramola, S. S. Paul, and S. O. Oyedepo, “Assessment of electricity generation and energy cost of wind energy conversion systems in north-central Nigeria,” https://www.sciencedirect.com/science/article/pii/S0196890411001981 Energy Conversion and Management, vol. 52, no. 12, pp. 3363–3368, Nov. 2011.

considers sensitivity along inflation rate with respect to energy cost and return on investment effects
sensitivity along O&M cost with respect to energy cost effects

[13] K. Tuomi, “The Role of the Investment Climate and Tax Incentives in the Foreign Direct Investment Decision: Evidence from South Africa,” Journal of African Business, vol. 12, no. 1, pp. 133–147, Mar. 2011.

reviews and analyses foreign direct investment decision
investment decision making factors
how Sub-Sahara Africa can leverage on the information from the analysis

[14] S. M. Shaahid and I. El-Amin, “Techno-economic evaluation of off-grid hybrid photovoltaic–diesel–battery power systems for rural electrification in Saudi Arabia—A way forward for sustainable development,” https://www.sciencedirect.com/science/article/pii/S1364032107001694 Renewable and Sustainable Energy Reviews, vol. 13, no. 3, pp. 625–633, Apr. 2009.

relationship between diesel consumption, carbon emission and PV penetration (graphical)
LCOE of $0.17/kWh at $0.1/L diesel price
27% initial penetration of PV
Capital cost 6900US$/kW, Life time of 25 years and O&M cost 0US$/year

[15] S. M. Shaahid and M. A. Elhadidy, “Economic analysis of hybrid photovoltaic–diesel–battery power systems for residential loads in hot regions—A step to clean future,” Renewable and Sustainable Energy Reviews, vol. 12, no. 2, pp. 488–503, Feb. 2008.

LCOE of 0.179 $/kWh for hybrid of PV, diesel and battery at $0.1/L diesel price
examines the effect of PV/Battery penetration on resulting COE
scenarios consider effect of hybrid system without battery on fuel savings, emission reduction and COEs of different hybrid combinations

[16] Felix B. Dayo, “Clean Energy Investment in Nigeria The domestic context.” https://files.zotero.net/19270912949/clean%20eenergy%20investmest_nigeria.pdf 2008

considers obstacle to investment on renewable energy in Nigeria
reviews incentives for clean energy in the country
policy recommendation

[17] Benjamin O. Agajelu1 ; Onyeka G. Ekwueme2 ; Nnaemeka S. P. Obuka2 and Gracefield O.R. Ikwu1, https://files.zotero.net/273028120/Life%20Cycle%20Cost%20Analysis%20of%20a%20Diesel-Photovoltaic%20Hybrid%20Power.pdf “Life Cycle Cost Analysis of a Diesel/Photovoltaic Hybrid Power Generating System.”

assumes real interest rate of 9% as well as project lifetime of 25 years
residential consumers in south Eastern part of Nigeria
hourly load of customers obtained from utility company (might be questionable with low supply of meter and popular estimated billing
26.3% IRR achieved
PV-diesel Hybrid system economically viable

[18] T. Lambert, P. Gilman, and P. Lilienthal, “Micropower System Modeling with Homer,” in Integration of Alternative Sources of Energy, John Wiley & Sons, Ltd, 2006, pp. 379–418.

[19] P. P. MSc. (Physics) and T. C. K. Ms. (Physics) PhD, “Solar photovoltaic water pumping in India: a financial evaluation,” https://files.zotero.net/16582322606/Life%20Cycle%20Cost%20Analysis%20of%20a%20Diesel-Photovoltaic%20Hybrid%20Power.pdf International Journal of Ambient Energy, vol. 26, no. 3, pp. 135–146, Jul. 2005.

NPV and IRR estimated
diesel price volatility with respect to break-even prices of diesel and electricity evaluated
consider effects of financial incentives such as tax and loan

[20] T. C. U. Kalu, “Capital budgeting under uncertainty: An extended goal programming approach,” https://www.sciencedirect.com/science/article/pii/S0925527398001212 International Journal of Production Economics, vol. 58, no. 3, pp. 235–251, Jan. 1999.

attempts to address uncertainty problem in capital budgeting
correct discount rate as a prerequisite to optimal allocation policy
investment decision