Techno-economic comparative analysis of photovoltaic, wind energy, and hybrid systems in Salipsip, Polillo using System Advisor Model (SAM)

As the population continues to thrive in remote areas such as Salipsip, Polillo, the need for sustainable and cost-effective energy solutions becomes urgent. This study aims to aid energy security and improve the generation mix of renewable energy systems by conducting a techno-economic analysis of various renewable energy powerplants: a 7.5 MW solar PV system, a 6MW wind turbine, and two hybrid systems – 2MW solar PV with 4 MW, and 4 MW solar PV with 2 MW wind. The analysis has found that the 6MW wind system outperforms solar PV, achieving a lower Levelized Cost of Energy ($ 0.1259/kWh), a higher Net Present Value (27.44%), and a minimum Debt Service Coverage Ratio of (1.54). Meanwhile, among hybrid options, Hybrid B (4 MW solar – 2MW) wind system proves more cost-efficient with a Net Capital Cost of ($ 8.67 million) and a higher Internal Rate of Return (15.63%). These findings can build a strategic power development plan in Polillo, which is not connected to the Wholesale Electricity Spot Market. By assessing renewable energy systems, the study serves as a valuable reference for energy developers and policymakers aiming to bolster the renewable energy transition.