Techno-Economic Analysis of Renewable Distributed Generation Integration into Rural Distribution Network for Improved Power Supply

The ultimate goal of this paper is to assess the techno-economics of integrating renewable distributed generation (RDG) to the Yahe – Ogoja rural distribution network, Cross River, Nigeria. The integration of hybrid solar photovoltaic (PV) and wind energy system with existing grid network using MATLAB / Simulink for technical simulation and HOMER Pro for economic optimization is considered in the study. Findings of network assessment indicated there is voltage instability and high losses of real power. After optimization with the PSO and MCDA techniques, Bus 20 was determined to be the ideal site for the placement of distributed generation. The Other Performance Tool was used for this purpose. It was determined that an installation power of 1315 kW and renewable penetration level of 72% are optimum at bus 20. The solar PV power output which was recorded varied from 175.5 kW to 338.5 kW, with an average of 255 kW and the wind power output varied from 4 kW to 306 kW depending on wind speed conditions. The technical findings demonstrated enhanced voltage stability, diminished real power losses, and THD values under the limit of 3% standard acceptable. Economic analysis showed that the NPC was financially attractive when considering a project life of 25 years, while LCOE was reduced from $0.06/kWh to $0.045/kWh, a reduction of 25%. The system achieved a payback period of 7.5 years and a Benefit-Cost Ratio (BCR) of 1.4. In addition, cumulative carbon emission savings reached 1,250 tons of CO₂ over the project lifespan. The study concludes that optimized hybrid renewable distributed generation offers a technically reliable, economically viable, and environmentally sustainable solution for enhancing electricity supply in rural communities.