The optimal design and economic evaluation of a stand-alone RES energy system for residential, agricultural and commercial sectors

Greenhouse gas (GHG) emissions caused by fossil fuels consumption is one of the challenging issues worldwide. Renewable energy source (RES)-based energy supply system can be a promising alternative to the current fossil fuel-based system. In this study, we propose an optimization approach for designing a stand-alone hybrid energy supply system using RES and evaluating economic performances of the energy systems. The suggested approach is used to answer the questions; i) what technology is suitable to various demand sectors in different regions, and ii) how does it cost to meet the demand in term of the levelized costs of energy (LCOE). We illustrate the applicability of the proposed approach by applying to the design problem of energy supply systems for residential, agricultural and commercial sectors of Korea. As the results of LCOE analysis, for the residential sector has the LCOE ranging of $0.37~$0.44/kWh, the agricultural sector of $0.15~$0.61/kWh and the commercial sector of $0.12~$0.28/kWh.