9th Annual International Conference on Industrial Engineering and Operations Management

Renewable Energy Management: Technical and Economic Evaluation of an Optimized Photovoltaic System

Hamed Ahmed, Abdul Kadir Hamid & Ali Cheaitou
Publisher: IEOM Society International
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Track: Engineering Management
Abstract

Abstract

This work explores how a photovoltaic (PV) system, can further contribute to worldwide efforts to reduce energy cost and environmental concerns by providing an overview of energy management analysis. Additionally, it illustrates the economic impact of installing the proposed PV system for a selected data center in Dubai, UAE. A Mixed Integer Linear Programming optimization model has been proposed that uses the output of the PV panels. The proposed model minimizes cost by optimizing the PV system size, so that the required electrical load is satisfied while minimizing the cost of purchased electrical energy from the utility grid. In this model, the system efficiency, the government incentives, the potential rebates, the inflation in electricity prices, the interest rates, the system salvage value and the electricity tariffs have been considered. A cases study is conducted in which the optimal solution does not recommend using the PV system with the current electricity prices. Sensitivity analyses have shown that changing the system cost to zero, i.e. offering it for free to the users by the governements, or the government may increase the energy costs from 0.57 [AED/KWh] to 1.1 [AED/KWh] through the imposition of taxes, this result in recommending installing the PV system.

Published in: 9th Annual International Conference on Industrial Engineering and Operations Management, Bangkok, Thailand

Publisher: IEOM Society International
Date of Conference: March 5-7, 2019

ISBN: 978-1-5323-5948-4
ISSN/E-ISSN: 2169-8767