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USING HOMER POWER OPTIMIZATION SOFTWARE FOR COST BENEFIT ANALYSIS OF HYBRID-SOLAR POWER GENERATION RELATIVE TO UTILITY COST IN NIGERIA

IJRRAS 7 (1) April 2011

www.arpapress.com/Volumes/Vol7Issue1/IJRRAS_7_1_14.pdf




USING HOMER POWER OPTIMIZATION SOFTWARE FOR COST
BENEFIT ANALYSIS OF HYBRID-SOLAR POWER GENERATION
RELATIVE TO UTILITY COST IN NIGERIA

K.R. Ajao, O.A.Oladosu & O.T. Popoola
Department of Mechanical Engineering, University of Ilorin, Ilorin, Nigeria


ABSTRACT
HOMER  is a micro power  optimization software used in evaluating designs of  both off-grid and grid-
connected power  systems for  a variety of  applications. The cost  benefit  analysis of  a wind turbine-solar
hybrid system was done using HOMER software and comparison was also made with the cost  per kilowatt
of central grid or utility supply. The hybrid system have a pay-back period of about thirty-three years and at
current costs,  central  grid  power  is the least  expensive  option  but  may not  be  available  to most  rural
households far from the grid. Hence it is necessary to supply these areas from isolated power sources.

1.     INTRODUCTION
Nigeria is  endowed  with  abundant  renewable energy  resources,  the significant  ones  being  solar  energy,  biomass,
wind, small and large hydropower with potential for hydrogen fuel, geothermal and ocean energies. Except for large
scale hydropower which serves as a major source of electricity, the current state of exploitation and utilization of the
renewable energy resources in the country is very low, limited largely to demonstration and pilot projects.
The main constraints  in the rapid development  and  diffusion of  technologies for  the  exploitation  and
utilization of renewable energy resources in the country are the absence of market and the lack of appropriate
policy, regulatory and institutional  framework to stimulate demand and attract  investors. The comparative
low  quality of  the systems developed and the high  initial  upfront  cost  also constitute barriers to the
development of markets.
The transmission network is overloaded with a wheeling capacity less than 4,000 MW. It has a poor voltage profile
in  most parts  of  the network,  especially  in  the North,  inadequate dispatch  and  control  infrastructure,  radial and
fragile grid network, frequent system collapse, exceedingly high transmission losses.
Access to electricity services is low in Nigeria. About 60 percent of the population (approx. 80 million people) is not
served with electricity. Per capita consumption of electricity is approximately 100kWh against 4500kWh, 1934 kWh
and 1379 kWh in South Africa, Brazil and China, respectively [1]. 
The objective of this work is to analyze the cost benefit of a solar-wind power hybrid system and determine the pay-
back period when compared to cost per kilowatt of utility power supply.

2.     WIND ENERGY
The energy available in the  wind depends on the density and air  velocity. The density, as any other  gas,
changes with the temperature and pressure which varies with the high level of the sea. The energy of a mass
of air which is displaced is determined by the Kinetic Energy (K.E) flux [2].

1
P  =     rAV3

( )

0

2

When wind move across the wind turbine, the static pressure drops to a lower pressure than the atmospheric
pressure. As the air  follows its trajectory, it  takes its  atmospheric value again, inducing an extra wind
deceleration. By this way, in a distance between upstream of the turbine and downstream, behind the turbine,
there is no change in static pressure, but  there is a reduction in kinetics energy. This phenomenon is
represented by the Betz law in eqn (2). 

PMAX=

8
27

rAV3

( )

Wind is a natural  phenomenon related to the movement  of  air  masses caused primarily by the differential
solar  heating of  the earth's  surface. Seasonal  variations in the energy received from  the sun affect  the
strength and direction of  the wind. The ease  with which wind turbines transform  energy in moving air  to
rotary mechanical energy suggests the use of electrical devices to convert wind energy to electricity. Wind
energy has also been utilized, for decades, for water pumping as well as for the milling of grains.

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A  study on the wind energy potentials for  a number  of  Nigerian cities shows that  the annual  wind speed
ranges from 2.32 m/s for Port Harcourt to 3.89 m/s for Sokoto [3]. The maximum extractable power per unit
area, for  the same two sites  was estimated as  4.51 and 21.97 watts per  square metre of  blade area,
respectively. When the duration of wind speeds greater than 3 m/s is considered, the energy per unit area is
168.63 and 1,556.35 kWh per square metre of blade area, again for Port-Harcourt and Sokoto.
Although use  of  wind energy for  water  supply has been known and used for  hundreds of  years, in recent
times efforts have been directed largely towards the use of wind power for the generation of electricity and
in the past twenty years or so rapid changes in technology have occurred and major wind powered generating
plants have been installed, especially in the rural areas of the developed countries.

3.     SOLAR ENERGY
Solar  energy is the most  promising of  the renewable  energy sources in  view  of  its apparent  unlimited
potential. The sun radiates its energy at the rate of about 3.8 x 1023 kW per second. Most of this energy is
transmitted radially as electromagnetic radiation which  comes  to about  1.5kW/m2  at  the boundary of  the
atmosphere. After  traversing the atmosphere, a square metre of  the earth's surface  can receive as much as
1kW of solar power, averaging to about 0.5 over all hours of daylight. Studies relevant to the availability of
the solar  energy resource in Nigeria have  indicated its  viability for  practical  use. Although solar  radiation
intensity appears rather dilute when compared with the volumetric concentration of energy in fossil fuels.
Nigeria receives 5.08 x 1012 kWh of energy per day from the sun and if solar energy appliances with just 5%
efficiency are used to cover only 1% of the country's surface area then 2.54 x 106 MWh of electrical energy
can be obtained from solar energy [4]. This amount of electrical energy is equivalent to 4.66 million barrels
of  oil  per  day.  Typical  of  such applications are in drying, cooking, heating, distillation, cooling and
refrigeration as well as electricity generation in thermal power plants.
In solar photovoltaic applications, the solar radiation is converted directly into electricity. The most common
method of doing this is by the use of silicon solar cells. The power generating unit is the solar module which
consists of  several  solar  cells electrically linked together  on a base  plate. On the whole the major
components of  a photovoltaic system  include  the arrays which consist  of  the  photovoltaic conversion
devices, their  interconnections and support, power  conditioning  equipment  that  convert  the dc  to ac and
provides regulated outputs of voltage and current; controller, which automatically manages the operation of
the total system; as well as the optional storage for stand alone (non-grid) systems.
4.         HOMER SOFTWARE
HOMER,  the micro  power  optimization  software  developed  by  Mistaya Engineering,  Canada for  the National
Renewable Energy Laboratory (NREL) USA,  used in this analysis simplifies the task of evaluating designs of both
off-grid and grid-connected power systems for a variety of applications. 
In designing a power system, many decisions about the configuration of the system are to be made: components to
include in the system design, size of each component to use etc. The large number of technology options and the
variation  in  technology  costs  and  availability  of  energy  resources  make these decisions  difficult. HOMER's
optimization and sensitivity analysis algorithms make it easier to evaluate the many possible system configurations
[5].
HOMER  simulates  the operation  of  a system  by  making  energy  balance  calculations  and  displays  a list of
configurations, sorted by net present cost that can be used to compare system design.


5.     ENERGY GENERATION SYSTEM DESIGN
The 400W FD Series wind turbine and solar module rated 100W are installed on the roof top of Faculty of
Engineering, University of Ilorin building (Block 10) as shown in Figure 1.  These unit serves as a backup
power supply to the Very Small Aperture Terminal (VSAT) equipment housed inside the VSAT room where
the inverter and battery bank are installed as shown in Figure 2.










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Ajao & al. Cost Benefit Analysis Of Hybrid-Solar Power Generation





















Figure 1:  PV Panel and FD series Turbine
6.   ENERGY ANALYSIS

6.1. Load profile




















Figure 2: Battery Bank and Converter

The load profile is based on a hypothetical apartment and the profile is shown in Figure 3. A small base load
of 10 W occurs throughout the day and night and small peaks of 80 W occur in the evening. The total daily
load average 903 Watt-hours per day.








Figure 3: Hourly load profile
6.2. Solar radiation profile
Figure 4 below shows the solar resource profile over one year. The solar resource data for Ilorin, Nigeria was
obtained from NASA surface Meteorology and solar energy website [6]. The approximate location of the site
used is 8° 26’ N and 4° 29’E. It has been observed that the solar  intensity ranges from 550 W/m2 to 1075
W/m2 with total incident energy per day of 17 MJ/m2 to 25 MJ/m2 in Ilorin, Nigeria [7].












Figure 4: Solar Radiation profile for

6.3. Wind resource data

Ilorin

Figure 5  shows the wind  resource profile over  a  year  period for  Ilorin. This  was obtained from  NASA
surface metrology and solar  energy website  [6].  The  daily average wind speed is 2.5 m/s measured at
anemometer height of 14.9 meters above ground level [8].




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IJRRAS 7 (1) April 2011
















7.    Economic Analysis

Ajao & al. Cost Benefit Analysis Of Hybrid-Solar Power Generation













Figure 5.Wind Resource Profile of
Ilorin

An annual  interest  rate of  6%  was  considered, while the project  life year  was  taken as 20 years.  All
calculations are done with  exchange rate of  $1 to N160. The tariff  of  the utility company in Nigeria, The
Power Holding Company of Nigeria (PHCN), is N4 per kWh ($0.024).
Constraints are conditions which a system must satisfy for it to be feasible. HOMER  discards systems that
do not  satisfy the specific constraints so that  they do not  appear  in the optimization or  sensitivity result.
Maximum capacity shortage is set at 5%.
A  survey  of  ten  households  having  similar  electricity  consumption  pattern showed that  the  average
consumption per month for a household is 400 units. This amount to N1, 736 ($0.026) per month or N20,
832 ($130.2) per annum and is equivalent to N416, 640 ($2,604) for twenty years of consumption.

8.    IMPLEMENTATION OF HOMER CODE

8.1 System equipment configuration
Figure 6 shows the equipment considered in the optimization. The equipments considered are photovoltaic
solar cells, wind turbine, converter, battery bank and loading system.



























Figure 6: Equipment considered in the optimization




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The size of  the components under  consideration, the  acquisition cost, replacement  cost, operation and
maintenance cost and the expected lifetime as input into the HOMER software is depicted in table 1 below.
Table 1: System Components

Component
PV Panels

Size
0.05 – 0.4 kW

Capital
Cost($)
$7,500/kW

Replacement
Cost
$7,500kW

O&M Cost
($)
0.00

Lifetime
20 years

Vision6 FM200D
Battery

200 Ah / 12 volt ( bank size: 1-
8 batteries)

$175/battery         $175/battery          $2.00/year       917 kWh of throughput
per battery

FDseries Wind
Turbine
Converter
8.2 System performance
8.2.1. PV system

0.4 kW DC
0.1 – 1.5 kW

$2,500/kW
$200/kW

$2,500/kW
$200/kW

$10/year
$20/year

15 years
15 years

The capital and replacement costs were specified with $7.50/W. No maintenance cost was considered for the
PV system because little or no maintenance is needed for the panels. A derating factor of 90% and 20 years
lifetime was considered as shown in Figure 7 below.




















Figure 7: Photovoltaic Solar Input
8.2.2. Wind system
The FD  Series Wind Turbine was considered for  the simulation  in Figure 8. The capital  and replacement
costs of $2.50 were specified.


















Figure 8: Wind Turbine Input


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IJRRAS 7 (1) April 2011



8.2.3. Battery storage

Ajao & al. Cost Benefit Analysis Of Hybrid-Solar Power Generation

The battery chosen is the 6FM200D  series. It  has a nominal  voltage of  12 Volts and nominal  capacity of
200Ah (2.4 kWh). Two batteries were considered by HOMER in the simulation shown if Figure 9 below.




















Figure 9: Storage Batteries Input

8.2.4. Converter and Inverter
The inverter  and the rectifier  efficiencies were assumed to be 90%  and 85%  respectively for  all  the sizes
considered.The sizes considered varied from 0.1 kW to 1.5kW. The converter input is shown in Figure 10.





















Figure 10: Converter Input

8.2.5. Load Levels
A  typical  household load was considered. The consumption includes  8-bulb points, television, DVD,
refrigerator, 4-fans, washing machine and pressing iron as shown in Figure 11.







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IJRRAS 7 (1) April 2011


























9.    RESULTS

Ajao & al. Cost Benefit Analysis Of Hybrid-Solar Power Generation
























Figure 11: Load Input

The total  net  present  cost  is HOMER's  main economic output. All  systems  are ranked according to net
present cost, and all other economic outputs are calculated for the purpose of  finding the net  present cost.
The result obtained from the optimization gives the initial capital cost as $3,455 while operating cost is 69
$/year. Total net present cost (NPC) is $4251 and the cost of energy (COE) is 1.74 $/kWh.
The utility tariff bill of was compared with the hybrid system net cost. At this rate, the system will have a
pay back period of about thirty-three (33) years and not twenty years as specified by many manufacturers.

10.   DISCUSSION
The cost benefit analysis of a wind turbine-solar hybrid system in comparison with utility tariff showed that
the hybrid system is not economically cheap and have a system payback time of thirty-three years.  At current
costs, central grid power is the least expensive option but will not be available to most rural households.
A wind-solar cell hybrid energy system would be cost effective if there is  reduction in component cost  by
installation of many of this hybrid system in a farm  thereby lowering the investment cost per kilowatts. Its
availability, sustainability and environmental friendliness make it a desirable source of energy supply.
The model developed is fairly general and may be adequate for preliminary results for energy consumption
cost for household and industrial sector willing to adopt renewable energy sources.

11.   REFERENCES
[1].      International Centre  for  Energy, Environment and Development  Report (2006).                 Renewable  Electricity  Action
Program, Federal Ministry of Power and Steel, Abuja, Nigeria
[2].      Victor L and Ricardo A (2004). Interfas TIMEO – ANSYS, for the modeling one and modal                       analysis  of          an
airfoil of turbine of wind IV, Conferencia de Diseño e Ingeniería por Computadora, San Miguel de Allende
[3].      Adegoke C.O and Anjorin A.S (1996). Wind as an alternative energy source. J.Sci.Engr.Tech 3(2), pp. 511-524.
[4].      Chiemeka  I. U and  Chineke  T. C  (2009). Evaluating the  global solar  energy potential at Uturu,  Nigeria,
International Journal of Physical Sciences Vol. 4 (3), pp. 115-119
[5].      Givler, T. and Lilienthal, P. (2005).             Using HOMER Software, NREL’s Micropower Optimization Model,  to
explore  the Role of Gen-sets  in Small Solar Power Systems; Case Study: Sri Lanka Technical Report, National
Renewable Energy Laboratory, USA
[6].      NASA, available at:  http://eosweb.larc.nasa.gov, accessed on 12th May, 2010.
[7].      Lasode  O.A  (2004). An  Improved Solar  Cabinet  Dryer  with  Convective  heat Transfer.                    Journal  of  Applied
Science, Engineering and Technology, Vol.4 No.2; pp.32-39
[8].      Ajao K.R and Adegun I.K (2009). Development and Power Performance Test of a Small Three-Blade Horizontal-Axis
Wind Turbine. Heat Transfer Research, Vol. 40, No. 8, pp.777-792




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