Economic Assessment of the Potential for Renewable Based Microgrids Generation Systems: An Application in a University Building

This study evaluates the economic feasibility of implementing renewable energy-based microgrids at the University of Córdoba, Montería, Colombia. Simulations and optimizations were conducted using the HOMER Energy software, considering local renewable resources with significant potential. The...

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Bibliographic Details
Main Authors: Jesús D. Rhenals-Julio, Héctor Armando Martínez, Miguel Doria Oviedo, Juan Fernando Arango, Jorge Mario Mendoza Fandiño
Format: Article
Language:English
Published: EconJournals 2024-12-01
Series:International Journal of Energy Economics and Policy
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Online Access:https://econjournals.com./index.php/ijeep/article/view/17423
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Summary:This study evaluates the economic feasibility of implementing renewable energy-based microgrids at the University of Córdoba, Montería, Colombia. Simulations and optimizations were conducted using the HOMER Energy software, considering local renewable resources with significant potential. The analysis identified the combination of grid energy, photovoltaic systems, and a hydrokinetic turbine as the optimal solution, yielding a levelized cost of energy (LCOE) of 0.137 USD/kWh, an internal rate of return (IRR) of 11.9%, and a payback period of approximately 10 years. These results demonstrate the economic viability of microgrid implementation under these specific conditions. In contrast, the use of biomass gasification proved to be financially unviable due to its high initial investment costs, indicating the need for local technological development to reduce these barriers. Overall, the proposed system presents a sustainable and cost-effective alternative for energy generation in university facilities, contributing to energy diversification and long-term environmental benefits.
ISSN:2146-4553