Economic Feasibility Analysis of Grid-Connected Solar Power Plants in Desert Regions

Abstract

The electricity crisis in Libya is a complex crisis, combining technical and administrative components. One of the most prominent solutions to address the problem of increasing demand for electricity is the use of solar energy. Desert areas are among the best locations for establishing solar power plants due to the abundance of solar radiation, the vast unused areas, and the low cost of land. Grid-connected solar power plants represent a cost-effective investment in most regions, especially as costs continue to decline and efficiency increases. The success of these projects depends on careful planning and a detailed feasibility study for each individual site. This study evaluates the generating capacity of solar photovoltaic systems at multiple locations in desert areas within Libya. In this research, to model the physical behavior of the power system, in addition to estimating the total cost of installing and operating the system during its expected lifetime, the Homer program was used. Through the results extracted from the economic feasibility analysis of the hybrid solar energy system (330 kW panels and 280 kW inverter) connected to the public grid, the data shows that the project has a high economic feasibility. Given that the cost of generating electricity was extremely low (0.02425 kWh), the total project cost was approximately 316,295 Libyan dinars. The data also confirms that solar panel costs represent the largest portion of the project's overall expenditures. Finally, solar power plants connected to the public electricity grid represent a strategic option with high benefits in the medium and long term.