Analyzing the Economic Viability of Microgrid Solutions in the South African Market
Amidst South Africa’s persistent energy crisis, this study explores the viability of microgrid systems as a pivotal solution to enhance energy reliability and sustainability. By scrutinizing factors like resource availability, grid connectivity, demand dynamics, regulatory frameworks, and...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
IEEE
2025-01-01
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| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/10878291/ |
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| Summary: | Amidst South Africa’s persistent energy crisis, this study explores the viability of microgrid systems as a pivotal solution to enhance energy reliability and sustainability. By scrutinizing factors like resource availability, grid connectivity, demand dynamics, regulatory frameworks, and financial implications, a comprehensive techno-economic analysis reveals the substantial potential of microgrids. These systems not only augment energy access and fortify grid resilience but also facilitate the seamless integration of renewable energy sources, aligning with global sustainability goals. Economic evaluations underscore favorable returns on investment, emphasizing the long-term cost efficiencies and broader societal benefits. The microgrid showcases strong financial performance with an Internal Rate of Return (IRR) of 23.1%, competitive Blended Cost of Energy (BCoE) at <inline-formula> <tex-math notation="LaTeX">${\$}$ </tex-math></inline-formula>0.073/kWh, Levelized Cost of Energy (LCoE) at <inline-formula> <tex-math notation="LaTeX">${\$}$ </tex-math></inline-formula>0.186/kWh lower than Eskom grid tariffs, and a rapid payback time of 5.5 years. The proposed microgrid has the potential to save 1,135,949.737 tons of carbon dioxide (CO2) over its 30-year lifecycle. |
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| ISSN: | 2169-3536 |