Techno-economic feasibility of solar power penetration involving transmission losses compensation

Solar power has become a popular renewable energy source, and the integration of solar power plants into a power grid has various technical, economic, and environmental implications. This research provides a new perspective on investigating the economic and environmental impact on a power grid. The effectiveness of this method is tested in a solar photovoltaic system connected to a grid of 8-bus. Simultaneous results show that the integration increases bus voltage by up to 0.4 kV and reduces transmission losses to 181.23 MWh/year, with total generated power at the slack bus reaching 3266.75 MWh/year. The reduction in transmission losses saves approximately USD 1,468,730.80 in operational costs. The payback period is 3.78 years, and the investment proves profitable, with a positive net present value. This reduction also reduces fuel consumption by about 345.78 kiloliters/year, mitigating climate change by preventing 898.38 tons CO2e/year of greenhouse gas emissions.