Economic Feasibility of a PV-Wind Hybrid Microgrid System for Off-Grid Electrification in Papua, Indonesia

Abstract

Electricity is fundamental to both urban and rural livelihoods. However, with the impending depletion of fossil fuels, an urgent transition towards sustainable and environmentally friendly renewable energy sources is necessary for electricity generation. The Hybrid Renewable Energy System (HRES), which amalgamates various renewable energy sources, offers a promising solution. This study investigates the economic viability of a photovoltaic (PV)-wind turbine hybrid microgrid system for off-grid electrification in five distinct cities in Papua, Indonesia. A simulation of the hybrid system was conducted using the Hybrid Optimization Model for Electric Renewable (HOMER) application, leveraging local solar and wind resource data. The simulation results indicated that Waropen city yielded the most optimal PV-wind turbine hybrid system, exhibiting the lowest Net Present Cost (NPC) of Rp397,591,000.00 and Cost of Energy (COE) of Rp 5,513.37/kWh. This system was capable of generating 9,098 kWh/year of electricity. Consequently, the proposed PV-wind turbine hybrid microgrid system emerges as an economically feasible solution for off-grid electrification in Papua, underscoring the potential of renewable energy sources in addressing the global energy crisis