Economic feasibility of solar and wind energy harvesting in Karbala, Iraq

This study discusses the economic feasibility of investment in renewable energy comparing wind turbines (WT) and photovoltaic (PV) technology. Nine scenarios were compared according to economic indices namely Net Present Value (NPV), Payback Period (PBP), and Internal Rate of Return (IRR) using parameters like power efficiency, capital cost, and electricity tariff. By incorporating a 20 kW battery storage system to support night-time demand, and considering current market rates for investment, operation, and maintenance alongside local and international electricity tariffs, the study concludes that at an international electricity price of $0.10/kWh, wind turbine (WT) systems achieve an NPV of $43,674—approximately 1.5 times higher than that of photovoltaic (PV) systems ($28,764.5). In addition, the IRR for WT and PV were found to be 15.2 % and 16.7 %, respectively, suggesting that both technologies can be financially viable given favourable tariffs. The need for tariff reform, cost reduction, and efficiency enhancement to release renewable energy investment in Iraq is emphasized by these findings.