Optimization and Cost Evaluation of an Autonomous Hybrid Renewable Energy System for Electrifying Rural Areas in Nigeria

ABSTRACT Reliable and affordable electricity supply remains a challenge in rural communities where grid extension is technically and economically unattractive. This paper evaluates the techno‐economic and environmental performance of hybrid renewable energy systems for rural electrification in Auchi, Edo State, Nigeria, with a daily load demand of 2255 kWh and a peak load of 213.53 kW. Three fully renewable configurations PV/WT/Battery, PV/Battery, and WT/Battery are analyzed under identical resource and economic conditions using HOMER Pro. Results show that the PV–WT–Battery configuration is the optimal solution, achieving a Cost of Energy (COE) of $0.0850/kWh, a Net Present Cost (NPC) of $904,122, and an initial capital cost of $502,690. The optimal system consists of 1177 kW PV, two wind turbines, 1,033 batteries, and a 198 kW converter, supplying 100% renewable electricity with zero CO₂ emissions. Excess electricity is 57.5%, while unmet load is limited to 0.0693%. Comparative analysis indicates higher costs for the WT/Battery system and higher excess generation for the PV/Battery system. The results show that the hybrid PV/WT/Battery system can provide reliable, cost‐effective, and zero‐emission electricity for rural electrification in Nigeria. Sensitivity analysis identifies solar irradiation and nominal discount rate as the most influential parameters affecting system economics.