Economic and Environmental Analysis of a Grid-Connected Hybrid Power System for a University Campus

Abstract

Background: The generation of clean and affordable energy by 2030 is a challenging task, necessitating the integration of renewable energy sources to reduce greenhouse gas emissions associated with coal, crude oil, and natural gas. This study examines the optimization and performance analysis of a hybrid microgrid for a university campus as a potential solution to achieve this goal. The primary objective is to decrease the cost of energy and reduce CO2 emissions on the campus using a hybrid approach. Results: The Howard college campus of the University of KwaZulu Natal (UKZN) was used as a case study, with meteorological data obtained from NASA and real hourly electrical load data for 2019 from the university smart meters. HOMER, an optimization software, was employed to model and simulate the case study. The results demonstrated significant savings of R15.7 million (approximately $1 million) in annual utility bills, a 51% reduction in CO2 emissions, a return on investment of 20%, and a payback period of 4 years. Conclusions: The study's findings suggest that universities can become self-sustaining during load shedding periods, as recently experienced in South Africa. The implementation of a hybrid microgrid system on a university campus offers considerable economic and environmental benefits, providing a potential blueprint for other large institutions seeking to achieve similar sustainability goals.