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Levellised electricity cost for wind and PV–diesel

hybrid system in Oman at selected sites
a a a a a a
A. H. Al-Badi , M. H. Albadi , A. Malik , M. Al-Hilali , A. Al-Busaidi & S. Al-Omairi
a
Department of Electrical and Computer Engineering, College of Engineering, Sultan
Qaboos University, P.O. Box 33, Al-Khod, Muscat-123, Sultanate of Oman
Version of record first published: 08 Mar 2013.

To cite this article: A. H. Al-Badi , M. H. Albadi , A. Malik , M. Al-Hilali , A. Al-Busaidi & S. Al-Omairi (2013): Levellised
electricity cost for wind and PV–diesel hybrid system in Oman at selected sites, International Journal of Sustainable
Engineering, DOI:10.1080/19397038.2013.768714

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 International Journal of Sustainable Engineering, 2013
http://dx.doi.org/10.1080/19397038.2013.768714

Levellised electricity cost for wind and PV –diesel hybrid system in Oman at selected sites
A.H. Al-Badi*, M.H. Albadi, A. Malik, M. Al-Hilali, A. Al-Busaidi and S. Al-Omairi
Department of Electrical and Computer Engineering, College of Engineering, Sultan Qaboos University, P.O. Box 33, Al-Khod,
Muscat-123, Sultanate of Oman
(Received 19 July 2012; final version received 14 December 2012)

Solar and wind energy data available for Oman indicate that these two resources are likely to play an important role in the
future energy generation in this country. In this paper, a model is designed to assess wind and solar power cost per kWh of
energy produced using different sizes of wind machines and photovoltaic (PV) panels at two sites in Oman, which then can
be generalised for other locations in Oman. Hourly values of wind speed and solar radiation recorded for several years are
used for these locations. The wind profiles from Thumrait and Masirah island are modelled using the Weibull distribution.
The cost of wind-based energy is calculated for both locations using different sizes of turbines. Furthermore, this paper
presents a study carried out to investigate the economics of using PV only and PV with battery as an energy fuel saver in two
villages. The results show that the PV energy utilisation is an attractive option with an energy cost of the selected PV ranges
Downloaded by [M.Pal pandian] at 10:42 08 April 2013

between 0.128 and 0.144 $/kWh at 7.55% discount rate compared to an operating cost of 0.128 – 0.558 $\kWh for diesel
generation, considering the capital cost of diesel units as sunk.
Keywords: hybrid energy system; wind energy; PV; battery

1. Introduction wind speed and solar radiation recorded for several years
The electricity in Oman is mainly produced by using natural are used to assess solar and wind energy potentials for
gas. However, fossil fuel has limited reserve, and also it these locations.
raises the pollution levels. Policy-makers in Oman realise
that renewable resources should be used as an essential
components of national energy supplies, as well as a global 2. Development of cost model for wind energy
strategic option for both extending the life of oil and gas 2.1 Wind energy resources
reserves and reducing carbon dioxide emissions and thus
The measured hourly wind speed data for Thumrait and
combating climate change. In 2010, the Authority for
Masirah sites for 9 years from 2000 to 2008 are analysed
Electricity Regulation in Oman has confirmed a shortlist of
(Ministry of Transport and Communications; Directorate
six renewable energy pilot projects out of which four of
General of Civil Aviation and Meteorology 2009). The
them are solar projects (The Authority for Electricity
monthly average wind speed for Thumrait and Masirah
Regulation Oman). Oman has a high level of solar energy in
sites for the 9 years are shown in Figures 1 and 2. It is
all its regions, but this level is varying according to the
noticed that the wind speed for both places is high during
location. The desert and northern parts of Oman areas has
the summer which also coincides with the demand of
the highest solar energy density whereas the coastal areas in
electrical power in the summer period.
the southern part have the lowest solar energy density and
The wind speed data for Thumrait and Masirah sites
relatively high wind speed (Al-Badi 2011a, 2011b, 2012a,
are modelled using the Weibull distribution. Figures 3
2012b; Al-Badi and Al-Badi 2012; Al-Badi, Al-Badi, et al.
and 4 show the probability density versus wind speed at
2011, Al-Badi, Al-Toobi, et al. 2011, Al-Badi et al. 2012;
10 m above the ground level, where k is the shape
Al-Badi, Malik, and Gastli 2009a, 2009b, 2011; Albadi
parameter and c is the scale parameter. Wind profile model
et al. 2011; Al-Yahyai et al. 2012; Bourdosen and Al-Badi
can be used for further studies such as turbine-site
2009; Malik and Al-Badi 2009).
matching (Albadi and El-Saadany 2010).
This paper reports the assessment of wind energy cost
per kilowatt hour using different sizes of wind turbines at
two sites: Thumrait and Masirah island. In addition,
photovoltaic (PV)– diesel hybrid system for two remote 2.2 Calculation of energy cost
villages is proposed for small power applications on the The measurements of the wind speed through those years
basis of actual loads for Al Mazyounah and Al Mathafa illustrate that Thumrait and Masirah have relatively good
villages in the southern part of Oman. Hourly values of wind energy potential. Different sizes of turbines are used

*Corresponding author. Email: albadi@squ.edu.om

q 2013 Taylor & Francis
 2 A.H. Al-Badi et al.

For the economic analysis, the following equation is

used to find the present value of cost (PVC):

n
1
PVC ¼ IC þ ðA £ PWFÞ 2 s ; ð1Þ
1þr

where IC is the initial cost of the wind turbine system,

including civil works, transportation, supervision and the
cables connection. The installation cost was assumed to be
10% of the initial cost that includes purchased price of
the machine, civil works, transportation, supervision and
the cables connection. A is the operation and maintenance
cost which is assumed to be 1% of initial cost. PWF is the
present worth factor, s is the scrap value (10% of the initial
Figure 1. Monthly averages of wind speed for Thumrait.
cost), n is the lifetime of the wind turbine and r is the
discount rate (7.55%).
The PWF is found using the following formula:
Downloaded by [M.Pal pandian] at 10:42 08 April 2013

ð1 þ rÞn 2 1
PWF ¼ : ð2Þ
rð1 þ rÞn

The cost of energy is obtained using the following

relationship:

PVC
Cost ¼ ; ð3Þ
kWh £ PWF
where kWh represents the annual energy, which is found
using the following equation:

X
j¼v2
kWh ¼ ðPj hj Þ; ð4Þ
j¼v1
Figure 2. Monthly averages of wind speed for Masirah.
where j is the wind speed at hub height in m/s, v1 and v2
to calculate the cost of energy. Table 1 shows the technical are the cut-in and cut-out speeds, respectively, Pj is the
data of the chosen turbines (My Wind Power System output power of wind turbine in kW at speed j and hj is the
Products 2011). number of hours at that speed. Table 2 presents the initial

0.18

0.16

0.14
k = 1.86
Probability density

0.12 c = 5.92
Measurment
0.1
Modeling
0.08

0.06

0.04

0.02

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Wind speed (m/s)

Figure 3. Probability density versus wind speed at 10 m above the ground level in Thumrait.
 International Journal of Sustainable Engineering 3

0.18

0.16

0.14 Measurment
k = 2.11
Probability density

0.12 c = 5.97 Modeling

0.1

0.08

0.06

0.04

0.02

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Wind speed (m/s)
Downloaded by [M.Pal pandian] at 10:42 08 April 2013

Figure 4. Probability density versus wind speed at 10 m above the ground level in Masirah.

cost, the operating and maintenance costs and PVC for the logarithmic law (Al-Yahyai et al. 2010 is as follows):
different sizes of wind turbines (My Wind Power System
Products 2011), and energy to rated power ratio for u2 ln ðz2 =z0 Þ
¼ ; ð5Þ
Thumrait site. u1 ln ðz1 =z0 Þ
Data of wind speed for Thumrait and Masirah sites are
used to calculate the total energy for each machine by where u1 is the known velocity at height z1, u2 is the
means of Equation (4). The wind speed at hub height using predicted wind speed at height z2 and z0 is the roughness

Table 1. Technical data for four different sizes of turbines.

Rated power Cut-in speed Cut-out speed Rated speed Hub height Rotor diameter Lifetime
Wind turbine (kW) (m/s) (m/s) (m/s) (m) (m) (year)
S48-750 kW 750 3.5 25 14 – 15 50 50 20 þ
BENZ-PMG/DD 900 KW 900 3 25 12 – 14 50 52 20 þ
WWD-1 1 MW 1000 3.6 20 12.5 70 60 20 þ
FDMG1.5 MW 1500 3.5 25 12 65.1 70.5 20 þ

Source: from Adapted My Wind Power System Products (2011).

Table 2. Cost of wind turbines.

Wind turbine IC ($) A ($) IC ($/kW) PVC ($) kWh/kW

S48-750 kW 541,200 4920 721.6 579,691 29,935
BENZ-PMG 900 kW 1,160,280 10,548 1289 1,242,812 30,448
WWD-1 1 MW 2,059,200 18,720 2059 2,205,656 40,047
FDMG 1.5 MW 2,244,000 20,400 1496 2,403,600 32,178

Table 3. Cost summary of wind power generated at Thumrait and Masirah.

S48-750 kW BENZ-PMG/DD 900 kW WWD-1 1 MW FDMG 1.5 MW

Turbine
Energy Cost Energy Cost Energy Cost Energy Cost
location (kWh) ($/kWh) (kWh) ($/kWh) (kWh) ($/kWh) (kWh) ($/kWh)
Thumrait 22,451,510 0.026 27,403,170 0.045 40,047,500 0.055 48,267,270 0.05
Masirah 21,733,470 0.027 27,287,570 0.046 41,653,050 0.053 33,546,890 0.071
 4 A.H. Al-Badi et al.

12
Sunshine (h/day)
Radiation (kWh/m2/day)
10

0
Adam
Bahla
Buraimi
Diba
Fahud
Ibra
Khasab
Marmul
Masirah
Port of salahah
Matrah
Sultan qaboos port
Nizwa
Qairaoon hairiti
Rusayl
Rustaq
Saiq
Salalah
Samail
Seeb
Sohar
Sur
Thumrait
Umm zamaim
Yalooni
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Figure 5. Global sunshine duration and solar radiation values for 25 locations.

length at that site. The roughness variable is related to a cut-out speed at 20 m/s, whereas other turbines have the
anything that can interfere with the force of the wind for a cut-out speed at 25 m/s.
wind turbine, which includes hills, trees and buildings. Masirah results show that FDMG 1.5 MW and
Roughness classes from 0 to 4 are usually used. A calm sea WWD-1 1 MW turbines have the maximum kilowatt
has a roughness length of 0, whereas a city with high hour which are 33,546,890 and 41,653,050 kWh, respect-
buildings would have a roughness length of 4 (Al-Yahyai ively. S48-750 kW turbine has the lowest cost of
et al. 2010). The measured wind shear values in Thumrait 0.027 $/kWh and has the minimum kilowatt hour of
and Masirah sites are 0.05 and 0.08 m, respectively 21,733,470 kWh. The second turbine that has low cost is
(Al-Yahyai et al. 2010).
BENZ-PMG/DD 900 kW turbine which has energy cost of
0.046 $/kWh. Generally speaking, it can be said that the
turbine S48-750 kW and BENZ-PMG/DD 900 kW are
2.3 Discussion of results appropriate for both regions since the energy cost ($/kWh)
Table 3 shows the energy cost summary of wind power is low and their output annual energy is acceptable.
generated at Thumrait and Masirah sites for different
sizes of turbines. It is interesting to note that the
calculated energy costs for the two sites are almost the
same for the three different sizes of wind turbine. For
FDMG 1.5 MW wind turbine, the cost of energy for
Thumrait site is lower than that of Masirah, and this can
be explained based on the fact that the amount of annual
energy produced in Thumrait site is more compared to
Masirah site.
For Thumrait site results, the highest energy recorded
with FDMG 1.5 MW is 48,267,270 kWh, while the lowest
energy recorded with turbine S48-750 kW is
22,451,510 kWh. Moreover, the highest cost calculated
with WWD-1 1 MW turbine is 0.055 $/kWh, whereas the
lowest cost is 0.026 $/kWh. This low cost of energy can be
attributed to the small initial cost of S48-750 kW [look at
Table 2, IC ¼ 721.6 ($/kWh)]. The WWD-1 1 MW turbine
has the highest energy cost because its initial cost ($/kW) Figure 6. HOMER schematic diagram for Al Mazyounah area
is very large compared with other turbines. Besides, it has with PV.
 International Journal of Sustainable Engineering 5

Table 4. Economic assumptions of Al Mazyounah system.

Component Capital ($/kW) Lifetime (years) Replacement ($) O&M ($) Fuel ($) Salvage value ($)
PV 308,219 25 0 34,357 0 0
Diesel generators 454,200 25 0 22,905 17,336,423 25,743
Converter 10,000 15 10,000 1115 0 0

Table 5. Optimal solution for Al Mazyounah area with PV.

Downloaded by [M.Pal pandian] at 10:42 08 April 2013

3. Levellised cost of PV – diesel hybrid system at
selected sites
Oman’s excellent location between latitudes 168 and 268N,
and longitudes 518 and 598E makes it appropriate for
utilising PV and wind technology as a source to produce
electricity to meet the growing demand for electricity.
Masirah and Thumrait sites have high amounts of global
sunshine and solar radiation as shown in Figure 5 (Al-
Badi, Al-Toobi, et al. 2011). As a result, they are expected
to be a good location for PV power stations.
After running the model, 192 feasible solutions are
found, and out of these 16 best solutions ranked according
to system’s minimum net present cost (NPC) are shown in
Table 5. In the optimal solution, generator 4 (2000 kW) is
not chosen and the total NPC is $18,146,168 with
operation cost of 1,558,611 $/year, and the cost of energy
equals to 0.128 $/kWh. The current operating cost in this
station is also 0.128 $/kWh (Annual report from Rural
Areas Electricity Company 2010). Thus, the cost stays the
same after adding PV system to the power station.
However, since one of the existing diesel generators is not

3.1 Al Mazyounah diesel power station

Al Mazyounah area is located in southern Oman in Dhofar
Governorate. The size of Al Mazyounah power station is
about 5.5 MW (Al-Yahyai et al. 2010; Annual report from
Rural Areas Electricity Company 2010). It is planned to
install 292 kW PV panels in this station (5% of the system
capacity) without batteries to reduce the dependence on
fossil fuel (Al-Yahyai et al. 2010; Annual report from
Rural Areas Electricity Company 2010). The schematic
diagram in HOMER model for the built PV – diesel hybrid
system is presented in Figure 6. Actual load curve obtained
from Rural Areas Electricity Company is used in the
model. The economic assumptions of the system are given Figure 7. HOMER schematic diagram for Al Mathafa area with
in Table 4. PV and batteries.
 6 A.H. Al-Badi et al.
Table 6. Battery parameters.
Capital cost ($) Efficiency (%) Lifetime (years)
3768 (9 units) 86 5 3768 (9 units)
Table 7. Optimal solution for Al Mathafa area with PV and batteries.
Downloaded by [M.Pal pandian] at 10:42 08 April 2013
required for the proposed system, diesel consumption and
greenhouse gas emissions will be lower.
3.2 Al Mathafa area diesel power station
Al Mathafa is a small region in Dhofar Governorate. The
total size of Al Mathafa power station is about 360 kW
(Annual report from Rural Areas Electricity Company
2010). It is planned to install 28 kW PV panels in Al
Mathafa with batteries to reduce the dependence on fossil
fuel (Annual report from Rural Areas Electricity Company
2010). HOMER schematic diagram for Al Mathafa region
is presented in Figure 7. Actual load curve obtained from
Rural Areas Electricity Company is used in the model. The
energy from the battery is used to eliminate the need to
bring another diesel generator online to meet only short-
term increases in the load due to battery fast charging/-
discharging. The total size of the batteries is selected such
that they provide the total energy required by the load for
30 min. Thus, nine battery units are chosen with size
of 2.16 kWh each. Battery parameters are presented in
Table 6.
After running the model, there are 768 possible
solutions, and out of these 16 best solutions prioritised
according to system’s minimum NPC are shown in Table 7.
In the optimal solution, generator 4 (160 kW) is not
chosen and the total NPC is $540,222 with operation cost
of 43,637 $/year, and the cost of energy equals to
0.144 $/kWh. The current operating cost of energy in
Replacement cost ($) O&M cost ($/year) Salvage value ($)
10 0
this station is 0.5581 $/kWh (Annual report from Rural
Areas Electricity Company 2010) which is far more
expensive compared to the proposed hybrid system.
4. Conclusions
The paper has presented a model to assess wind power cost
per kilowatt hour of energy produced using different sizes
of wind machines at two sites in Oman. The energy costs
of wind power generated at Thumrait and Masirah sites for
four different sizes of turbines are estimated between
2.6 ¢/kWh and 7.5 ¢/kWh. The low cost of energy can be
explained based on the fact that the initial cost of some
turbines was small. Furthermore, this paper presented
studies carried out to investigate the economics of using
PV and PV with battery as an energy fuel saver in two
villages. The results show that combining the PV with the
existing system is an attractive option which can reduce
the cost of energy in one village from 55.81 ¢/kWh to
14.4 ¢/kWh.
Acknowledgments
The authors would like to acknowledge the quality support of the
Rural Areas Electricity Company Oman for providing the load
data. The acknowledgement is also extended to the Directorate
General of Civil Aviation and Meteorology, Department of
Meteorology, for providing the wind and solar radiation data for
the sites.
 International Journal of Sustainable Engineering
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