Hybrid Renewable Energy System Connected to the Grid with Demand Response Optimization: Case Study of Iraq and Baghdad

Due to the electricity shortage in the power system, it is essential to provide solutions considering optimal economics and environmental protection. Utilizing renewable energy resources (RERs) for production within existing grid infrastructure contributes to a more efficient and eco-friendly power system. The literature has mainly focused on designing individual configurations, often on a single unit, and has often excluded network flexibility and operational strategies such as the DR model. This study details the techno-economic evaluation of a grid-connected hybrid renewable energy system and real-world load demands across two scenarios at the regional and city levels, conducted under Baghdad city's climatic conditions. The study uses the HOMER software tool to simulate and analyze various possible models in all configurations, such as photovoltaic (PV) panels, wind turbines (WT), batteries, and grid connection. As solar energy has the highest density among renewable energy sources in Iraq, the best arrangement was determined by HOMER to be PV-battery-storage coupled with the grid. This optimal configuration lowered the levelized cost of electricity (LCOE) from $0.0686 to $0.0682 per kWh (0.58% decrease), and reduced the net present cost (NPC) from $206.076 billion to $205.134 billion (0.46% decrease). CO2 emissions are about 1.32% lower after embedding an RER. A demand response (DR) strategy was also investigated for system flexibility and economic benefits; the results of using 5-day DR and 10-day programs have supported the usage of RER sources, reduced CO2 emissions, and increased the total bill savings. The optimal results for the utility demand case recorded for 10-day DR: 34.9% RER penetration, 32.671% CO2 decrease, and $14.4 B savings. Moreover, the Rusafa case under outage conditions was investigated, giving 44.4% RER penetration, a CO2 decrease of 39.573%, and $585 M savings. The simultaneous deployment of RER with DR strategies greatly enhances system efficiency and economic return.