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

Author

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  • Rhenals-Julio, Jesús D.

    (Department of Mechanical Engineering, University of Córdoba, Cra 6 No. 77-305 Montería, Colombia)

  • Martínez, Héctor Armando

    (Department of Mechanical Engineering, University of Córdoba, Cra 6 No. 77-305 Montería, Colombia)

  • Oviedo, Miguel Doria

    (Faculty of Science and Engineering, Electromechanical Engineering Program, University of Sinú-Elías Bechara Zainúm, Cra. 1w No. 38-153, Barrio Juan XXIII, Monteria, Colombia)

  • Arango, Juan Fernando

    (Department of Mechanical Engineering, University of Córdoba, Cra 6 No. 77-305 Montería, Colombia)

  • Fandiño, Jorge Mario Mendoza

    (Department of Mechanical Engineering, University of Córdoba, Cra 6 No. 77-305 Montería, Colombia)

Abstract

This study evaluates the economic feasibility of implementing renewable energy-based microgrids at the University of Co?rdoba, Monteri?a, 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.

Suggested Citation

  • Rhenals-Julio, Jesús D. & Martínez, Héctor Armando & Oviedo, Miguel Doria & Arango, Juan Fernando & Fandiño, Jorge Mario Mendoza, 2024. "Economic Assessment of the Potential for Renewable Based Microgrids Generation Systems: An Application in a University Building," International Journal of Energy Economics and Policy, Econjournals, vol. 15(1), pages 206-212, December.
    • Handle: RePEc:eco:journ2:v:15:y:2024:i:1:id:17423
    DOI: 10.32479/ijeep.17423
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