IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v34y2009i4p955-964.html
   My bibliography  Save this article

Feasibility analysis of renewable energy supply options for a grid-connected large hotel

Author

Listed:
  • Dalton, G.J.
  • Lockington, D.A.
  • Baldock, T.E.

Abstract

This study presents an analysis of the technical and financial viability of grid-only, RES-only and grid/RES hybrid power supply configurations for a large-scale grid-connected hotel (over 100 beds). Assessment criteria comprised net present cost (NPC), renewable fraction (RF) and payback time. The RES software HOMER (National Renewable Energy Laboratory, US) was utilised as the assessment tool with modeling performed with hourly load data input from a hotel located in a subtropical coastal area of Queensland, Australia. The results demonstrate that RES, in principle, has the potential to supply significant power for a large-scale tourist accommodation, in conjunction with the grid-electricity supply. Optimisation modeling demonstrated that, at 2004 prices, the NPC of the grid/RES hybrid configuration is comparable with the grid-only supply and resulted in a RF of 73%, a payback time of 14 years and a reduction in greenhouse gas emissions of 65%. Optimisation modeling also showed that whilst a RES-only configuration can potentially supply 100% of power demand, such a configuration is presently uneconomical given current electricity costs. Results indicate that wind energy conversion systems (WECS), rather than photovoltaics, are the most economically viable RES technology for large-scale grid-connected operations. Specifically, large-scale WECS (over 1000kW) are more efficient and more economical than multiple small-scale WECS (0.1–100kW). Hydrogen fuel cells and storage are presently uneconomical in grid-connected configurations. Sensitivity analysis demonstrated that operations that rely on grid-only supply are more economically susceptible to escalations in electricity costs and the imposition of carbon taxes, in comparison to grid/RES hybrids. Indeed, at present electricity prices, which have nearly quadrupled since 2004, the grid/RES hybrid is more economical over a 20-year span than the grid-only system, with a NPC which is 50% lower, and a payback time of 4.5 years. The analysis demonstrates that RES is both technically feasible and economically viable as an addition to grid-connected supply for large-scale tourist operations, and should become more attractive as costs of conventional supplies increase.

Suggested Citation

  • Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2009. "Feasibility analysis of renewable energy supply options for a grid-connected large hotel," Renewable Energy, Elsevier, vol. 34(4), pages 955-964.
  • Handle: RePEc:eee:renene:v:34:y:2009:i:4:p:955-964
    DOI: 10.1016/j.renene.2008.08.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148108003315
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2008.08.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chokmaviroj, Somchai & Wattanapong, Rakwichian & Suchart, Yammen, 2006. "Performance of a 500kWP grid connected photovoltaic system at Mae Hong Son Province, Thailand," Renewable Energy, Elsevier, vol. 31(1), pages 19-28.
    2. Kaldellis, J. K. & Kavadias, K. A., 2001. "Optimal wind-hydro solution for Aegean Sea islands' electricity-demand fulfilment," Applied Energy, Elsevier, vol. 70(4), pages 333-354, December.
    3. Harrison, D.G. & Ho, G.E. & Mathew, K., 1996. "Renewable energy in the outback of Australia," Renewable Energy, Elsevier, vol. 9(1), pages 776-780.
    4. Zoulias, E.I. & Lymberopoulos, N., 2007. "Techno-economic analysis of the integration of hydrogen energy technologies in renewable energy-based stand-alone power systems," Renewable Energy, Elsevier, vol. 32(4), pages 680-696.
    5. Bernal-Agustín, José L. & Dufo-López, Rodolfo, 2006. "Economical and environmental analysis of grid connected photovoltaic systems in Spain," Renewable Energy, Elsevier, vol. 31(8), pages 1107-1128.
    6. Sauter, Raphael & Watson, Jim, 2007. "Strategies for the deployment of micro-generation: Implications for social acceptance," Energy Policy, Elsevier, vol. 35(5), pages 2770-2779, May.
    7. Kaldellis, J.K. & Koronakis, P. & Kavadias, K., 2004. "Energy balance analysis of a stand-alone photovoltaic system, including variable system reliability impact," Renewable Energy, Elsevier, vol. 29(7), pages 1161-1180.
    8. Akella, A.K. & Sharma, M.P. & Saini, R.P., 2007. "Optimum utilization of renewable energy sources in a remote area," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(5), pages 894-908, June.
    9. Underwood, C.P. & Ramachandran, J. & Giddings, R.D. & Alwan, Z., 2007. "Renewable-energy clusters for remote communities," Applied Energy, Elsevier, vol. 84(6), pages 579-598, June.
    10. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2008. "Feasibility analysis of stand-alone renewable energy supply options for a large hotel," Renewable Energy, Elsevier, vol. 33(7), pages 1475-1490.
    11. Bernal-Agustín, José L. & Dufo-López, Rodolfo & Rivas-Ascaso, David M., 2006. "Design of isolated hybrid systems minimizing costs and pollutant emissions," Renewable Energy, Elsevier, vol. 31(14), pages 2227-2244.
    12. Fernández-Infantes, Alberto & Contreras, Javier & Bernal-Agustín, José L., 2006. "Design of grid connected PV systems considering electrical, economical and environmental aspects: A practical case," Renewable Energy, Elsevier, vol. 31(13), pages 2042-2062.
    13. Becken, Susanne & Frampton, Chris & Simmons, David, 2001. "Energy consumption patterns in the accommodation sector--the New Zealand case," Ecological Economics, Elsevier, vol. 39(3), pages 371-386, December.
    14. Zahedi, A., 2006. "Solar photovoltaic (PV) energy; latest developments in the building integrated and hybrid PV systems," Renewable Energy, Elsevier, vol. 31(5), pages 711-718.
    15. Shaahid, S.M. & Elhadidy, M.A., 2008. "Economic analysis of hybrid photovoltaic-diesel-battery power systems for residential loads in hot regions--A step to clean future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(2), pages 488-503, February.
    16. Khan, M.J. & Iqbal, M.T., 2005. "Pre-feasibility study of stand-alone hybrid energy systems for applications in Newfoundland," Renewable Energy, Elsevier, vol. 30(6), pages 835-854.
    17. Lowe, David & Lloyd, C.R, 2001. "Renewable energy systems for remote areas in Australia," Renewable Energy, Elsevier, vol. 22(1), pages 369-378.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2008. "Feasibility analysis of stand-alone renewable energy supply options for a large hotel," Renewable Energy, Elsevier, vol. 33(7), pages 1475-1490.
    2. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2009. "Case study feasibility analysis of renewable energy supply options for small to medium-sized tourist accommodations," Renewable Energy, Elsevier, vol. 34(4), pages 1134-1144.
    3. Erdinc, O. & Uzunoglu, M., 2012. "Optimum design of hybrid renewable energy systems: Overview of different approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1412-1425.
    4. Kaundinya, Deepak Paramashivan & Balachandra, P. & Ravindranath, N.H., 2009. "Grid-connected versus stand-alone energy systems for decentralized power--A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2041-2050, October.
    5. Dalton, G.J. & Lockington, D.A. & Baldock, T.E., 2007. "A survey of tourist operator attitudes to renewable energy supply in Queensland, Australia," Renewable Energy, Elsevier, vol. 32(4), pages 567-586.
    6. Chauhan, Anurag & Saini, R.P., 2014. "A review on Integrated Renewable Energy System based power generation for stand-alone applications: Configurations, storage options, sizing methodologies and control," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 99-120.
    7. Bazmi, Aqeel Ahmed & Zahedi, Gholamreza & Hashim, Haslenda, 2011. "Progress and challenges in utilization of palm oil biomass as fuel for decentralized electricity generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 574-583, January.
    8. Zhou, Wei & Lou, Chengzhi & Li, Zhongshi & Lu, Lin & Yang, Hongxing, 2010. "Current status of research on optimum sizing of stand-alone hybrid solar-wind power generation systems," Applied Energy, Elsevier, vol. 87(2), pages 380-389, February.
    9. Bazmi, Aqeel Ahmed & Zahedi, Gholamreza, 2011. "Sustainable energy systems: Role of optimization modeling techniques in power generation and supply—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3480-3500.
    10. Bahramara, S. & Moghaddam, M. Parsa & Haghifam, M.R., 2016. "Optimal planning of hybrid renewable energy systems using HOMER: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 609-620.
    11. Sinha, Sunanda & Chandel, S.S., 2014. "Review of software tools for hybrid renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 192-205.
    12. Padrón, Isidro & Avila, Deivis & Marichal, Graciliano N. & Rodríguez, José A., 2019. "Assessment of Hybrid Renewable Energy Systems to supplied energy to Autonomous Desalination Systems in two islands of the Canary Archipelago," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 221-230.
    13. Tezer, Tuba & Yaman, Ramazan & Yaman, Gülşen, 2017. "Evaluation of approaches used for optimization of stand-alone hybrid renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 840-853.
    14. Bernal-Agustín, José L. & Dufo-López, Rodolfo, 2009. "Simulation and optimization of stand-alone hybrid renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2111-2118, October.
    15. Tzamalis, G. & Zoulias, E.I. & Stamatakis, E. & Varkaraki, E. & Lois, E. & Zannikos, F., 2011. "Techno-economic analysis of an autonomous power system integrating hydrogen technology as energy storage medium," Renewable Energy, Elsevier, vol. 36(1), pages 118-124.
    16. William E., Lilley & Luke J., Reedman & Liam D., Wagner & Colin F., Alie & Anthony R., Szatow, 2012. "An economic evaluation of the potential for distributed energy in Australia," Energy Policy, Elsevier, vol. 51(C), pages 277-289.
    17. Perera, A.T.D. & Attalage, R.A. & Perera, K.K.C.K. & Dassanayake, V.P.C., 2013. "Designing standalone hybrid energy systems minimizing initial investment, life cycle cost and pollutant emission," Energy, Elsevier, vol. 54(C), pages 220-230.
    18. Goel, Sonali & Sharma, Renu, 2017. "Performance evaluation of stand alone, grid connected and hybrid renewable energy systems for rural application: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1378-1389.
    19. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    20. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:34:y:2009:i:4:p:955-964. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.