Techno-Economic and Environmental Analysis of Hybrid Microgrids: A Real Case Study for An Industrial Application in Egypt

Egypt's rising energy demands and significant greenhouse gas emissions have made it critical to coordinate non-conventional energy solutions. In the industrial zone of 6<sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">th</sup> October City, an isolated hybrid solar photovoltaic (PV)/Diesel Generator system is assessed for sustainability. The optimal design is established using HOMER Pro software, considering crucial factors such as component sizing, renewable portion, Net Present Cost (NPC), Levelized Cost of Energy (LCOE), Internal Rate of Return (IRR), and reduction of CO<inf xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</inf> emissions. Two scenarios are examined in the study: one without rises in fuel prices and one with them. The employed hybrid system, according to the U.S. Energy Information Administration (EIA), improves energy security and lessens vulnerability to changes in fuel prices by 6.13% per annum. The Sustainable Development Goals (SDGs) are in line with this strategy, especially Goals 13 (Climate Action) and 7 (Affordable and Clean Energy). Moreover, the economic study indicates that including carbon finance methods in the project design is economically feasible and has the potential to yield substantial revenue streams, by the European Union Emission Trading System (EUETS).