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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| Format: | Article |
| Language: | English |
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IEEE
2025-01-01
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| Series: | IEEE Access |
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| Online Access: | https://ieeexplore.ieee.org/document/10878291/ |
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| author | Mpho Sam Nkambule Ali Nabil Hasan Thokozani Shongwe |
| author_facet | Mpho Sam Nkambule Ali Nabil Hasan Thokozani Shongwe |
| author_sort | Mpho Sam Nkambule |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-d39fb81a2fd64d839505f8a550b43fd8 |
| institution | OA Journals |
| issn | 2169-3536 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj-art-d39fb81a2fd64d839505f8a550b43fd82025-08-20T02:15:29ZengIEEEIEEE Access2169-35362025-01-0113290912912110.1109/ACCESS.2025.353969110878291Analyzing the Economic Viability of Microgrid Solutions in the South African MarketMpho Sam Nkambule0https://orcid.org/0000-0001-9592-7367Ali Nabil Hasan1https://orcid.org/0000-0002-1734-4032Thokozani Shongwe2https://orcid.org/0000-0002-3011-7600Department of Electrical and Electronic Engineering Science, University of Johannesburg, Johannesburg, South AfricaDepartment of Electrical and Electronic Engineering Science, University of Johannesburg, Johannesburg, South AfricaDepartment of Electrical and Electronic Engineering Science, University of Johannesburg, Johannesburg, South AfricaAmidst 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.https://ieeexplore.ieee.org/document/10878291/Microgrid (MG)hybrid renewable energy system (HRES)energy management system |
| spellingShingle | Mpho Sam Nkambule Ali Nabil Hasan Thokozani Shongwe Analyzing the Economic Viability of Microgrid Solutions in the South African Market IEEE Access Microgrid (MG) hybrid renewable energy system (HRES) energy management system |
| title | Analyzing the Economic Viability of Microgrid Solutions in the South African Market |
| title_full | Analyzing the Economic Viability of Microgrid Solutions in the South African Market |
| title_fullStr | Analyzing the Economic Viability of Microgrid Solutions in the South African Market |
| title_full_unstemmed | Analyzing the Economic Viability of Microgrid Solutions in the South African Market |
| title_short | Analyzing the Economic Viability of Microgrid Solutions in the South African Market |
| title_sort | analyzing the economic viability of microgrid solutions in the south african market |
| topic | Microgrid (MG) hybrid renewable energy system (HRES) energy management system |
| url | https://ieeexplore.ieee.org/document/10878291/ |
| work_keys_str_mv | AT mphosamnkambule analyzingtheeconomicviabilityofmicrogridsolutionsinthesouthafricanmarket AT alinabilhasan analyzingtheeconomicviabilityofmicrogridsolutionsinthesouthafricanmarket AT thokozanishongwe analyzingtheeconomicviabilityofmicrogridsolutionsinthesouthafricanmarket |