Techno-economic and environmental analysis of hybrid energy system for industrial sector of Pakistan

The industrial sector of Pakistan is currently facing severe load-shedding, which ultimately affects its unit production. The greater dependency on conventional energy resources (Thermal, Nuclear, etc.) results in higher production costs and environmental pollution. A sustainable, cost-effective, and environment-friendly solution can help the industrial growth of Pakistan. This article proposes an optimal hybrid energy system (HES) for the industrial sector of Pakistan to overcome the mentioned challenges. The proposed HES is developed in HOMER Pro. Three different energy cases (Case I: Existing energy system including a utility grid and diesel generator, Case II: On-grid Biogas system, and Case III: On-grid PV system with batteries) are considered for the Gourmet food Industry in the Sundar Industrial estate, Pakistan. The Load profile of the selected site was calculated through on-site visits and data provided by the designated utility grid feeder. The analysis shows that Case III is more effective than other cases, indicating reduced Net Present Cost (NPC), Cost of Energy (COE), and Operating Cost (OC) to $ 19.2 million, $0.034/kWh, and $ 573,371/year respectively. Moreover, the On-grid PV system with batteries (Case III) provides an environmentally friendly solution by reducing 63.82% by and 62.22%. Comparing the sensitivity analysis for various grid sell-back prices ($0/kWh, $0.043/kWh, $0.061/kWh, and $0.09/kWh), Case III is more cost-effective than Case II. The revenue generation in Case III is $128,499.41/yr, considering the supply of excess electricity into nearby small industrial loads at $0.065/kWh, this indicates that installing optimal HES in industries will not only help in overall cost reduction but also support in mitigating environmental pollution and load shedding.