Techno-economic optimization of a hybrid power system for Azari farm

Abstract

The increasing demand for reliable and cost-effective electricity supply, particularly in regions with unstable grid infrastructure, has intensified the need for optimized hybrid energy systems. This study investigates the techno-economic performance and optimal configuration of a hybrid power system consisting of photovoltaic (PV), grid and diesel generator components. The system was modeled and simulated using Hybrid Optimization of Multiple Energy Resources (HOMER)  Pro to determine the most economically viable and technically reliable energy configuration for the Azari Farm. Techno-economic analysis was carried out in Hybrid Optimization of Multiple Energy Resources (HOMER) to evaluate multiple system configuration. The evaluation was based on key performance indicators such as Net Present Cost (NPC). Return on Investment (ROI), Internal Rate of Return (IRR), and discounted payback period. The result indicate that the hybrid PV /Grid /Generator provided the most economically viable solution with a discounted payback period of 8.19 years, a Return on Investment of  11.5%, an Internal Rate of Return of 15% and NPC value of about ₦212.63 million while the Grid-only and Generator-only gave a zero discounted  payback period, a zero Internal Rate of Return indicating that these systems are unable to recover their investment costs due to higher operational expenses and lack of renewable energy integration. This study therefore highlights the importance of integrating renewable energy resources into conventional power system for the Azari Farm and provides useful insights for energy planners, policymakers and investors seeking cost-effective and reliable energy solutions