Techno-Economic Assessment of Renewable Energy-Based Microgrids: A Case Study for Building in El Gouna, Egypt

The increasing global demand for clean and reliable electricity has positioned microgrids as a key solution for integrating renewable energy into modern power systems. This paper presents a comprehensive review of microgrid technologies, focusing on the integration of solar and wind energy as sustainable alternatives to conventional fossil fuel-based power generation. Microgrids enhance system resilience, improve power quality, and enable local energy management while supporting the global transition toward decarbonization and energy decentralization. The study outlines the operational modes of microgrids—grid-connected, islanded, and hybrid and evaluates the technical and economic viability of each. Special emphasis is given to the performance characteristics, sizing methodology, and cost analysis of wind turbines and photovoltaic systems. A modeling framework is developed to simulate four renewable-based scenarios in El Gouna, Egypt, comparing 100% wind, 100% PV (on-grid and off-grid), and a hybrid wind–PV configuration. Results show that while wind-dominant systems offer high reliability, hybrid solutions provide the most cost-effective performance, with reduced dependency on a single energy source. The findings highlight the role of integrated renewable energy microgrids in enhancing energy security, reducing emissions, and ensuring a sustainable energy future.