Optimal Design and Economic Analysis of Biogas/Diesel/PV Power System for Electrification of Palm Oil Factory and Surround Settlements

Abstract

This work includes a feasibility study focusing on the economic analysis of a hybrid biogas/PV/diesel generation for the electrification of a palm oil factory and surrounding settlements. A typical load from a palm oil mill in the remote Sumatra area is used as a case study. Based on the Homer simulation results, the optimal configuration, economics, and environment are analyzed. The optimal results were achieved for the biogas-PV-Diesel configuration with a minimum net present cost (NPC) of IDR 132B and a cost of energy (CoE) of IDR 2,117/kWh. The hybrid system has reduced overall operating costs as well as reduced fossil fuel consumption. This system also has reduced greenhouse gas emissions compared to non-renewable energy systems. Increasing the use of biogas and PV energy sources has an impact on environmental sustainability and reduces the use of fossil fuel energy systems.