Hybrid Renewable Energy Systems for Generation of Own Power by Small and Medium-Scale Enterprises

Decentralized power generation, from renewables, is an attractive option for the future energy transition. In this paper, techno-economic potential to produce own power from distributed renewable to de-carbonize the operations... [ view full abstract ]

Decentralized power generation, from renewables, is an attractive option for the future energy transition. In this paper, techno-economic potential to produce own power from distributed renewable to de-carbonize the operations of the Small and Medium Scale Enterprises (SMEs) was critically analyzed, together with socio-political aspects, based on a case study. As a representative of a SME, one of the leading printing outfits of Sri Lanka was selected. Solar photovoltaic (PV) and biomass gasification systems were identified as the most cost-efficient and easy to operate technologies for grid connected, decentralized, small-scale power generation at present. Grid integration would severely limit the economic viability of small scale power generation units, irrespective of the technology. The local availability of both resource and technology are crucial for financial success of such projects. Low capacity factor of solar PV and complexity of the supply chain for biomass to power systems are critical factors for system sizing and operation of stand-alone small-scale applications of respective technologies. Utilization of wastes for energy generation of the associated industry would, nevertheless, improve economic benefits to the biomass system and stabilize the supply chain of biomass feedstock. A hybrid Solar PV-Biomass gasification power generation system, however, would have superior techno-economic performances with lower environment impact than stand-alone systems. Complementing plant capacity factors of PV and biomass systems, coupled with high part load efficiency of internal combustion engine-based power generation from biomass gasification would provide a more stable power output from the hybrid system, even with the presence of a fluctuating renewable like solar. Possibilities for such systems to perform ancillary services were thus explored in brief. An equal share of the net power capacity between the technologies was obtained as the most suitable combination for a small-scale Solar PV-Biomass gasification hybrid power system. A net carbon dioxide reduction of more than eighty percent of the operations of the SMEs is feasible depending on individual country’s grid emission factors. Socio-political factors have a high impact on overall viability of small-scale systems, leading to risks for project viability of ill-designed systems.