Techno-economic analysis and optimal design of grid-connected hybrid renewable energy systems for a university in Malaysia

Abstract

The escalating energy demand in educational institutions, coupled with rising operational costs, increasing reliance on fossil fuels, and growing greenhouse gas (GHG) emissions, poses critical sustainability challenges globally. Transitioning to renewable energy is essential to reducing carbon emissions and ensuring a reliable electricity supply. Despite growing interest in integrating renewable energies, a significant gap persists in comprehensive techno-economic-environmental assessment and optimal design of grid-connected hybrid renewable energy systems (HRES) tailored to institutional campuses in developing economies, particularly in tropical climates. This thesis addresses these challenges by investigating whether grid-connected HRES incorporating solar photovoltaic, wind turbines, energy storage, and hydrogen-based technologies can offer a technically feasible, economically viable, and environmentally superior alternative to conventional grid-dependent energy supply at a Malaysian university campus. The primary aim of this research is to optimally size, design, and evaluate grid-connected HRES integrated with renewable energy sources, assessing their techno-economic performance and GHG-reduction potential in an institutional context in Malaysia. A two-stage computational methodology was employed: techno-economic feasibility analysis using the HOMER GRID and HOMER PRO simulation platforms, followed by optimal system design and sizing, validated using PVsyst software. Two principal configurations were systematically investigated: a grid-connected solar PV system with and without energy storage, and an advanced hybrid PV/wind/electrolyzer/hydrogen storage/fuel cell system. The first configuration identified a 295 kWp grid-connected solar PV system as the most cost-effective solution, achieving a levelized cost of energy (LCOE) of 0.296 MYR/kWh, a net present cost (NPC) of RM 3.56 million, an 8.2-year payback period, and approximately 48% annual CO2 emission reduction relative to the conventional grid. Incorporating battery energy storage at 303 kWp further enhanced system reliability, with PVsyst design validation yielding performance ratios of 86% and 85.3%, respectively. The second configuration, comprising a 600 kWp PV array, 6 kWp wind turbine, 200 kWp electrolyzer, 50 kg hydrogen tank, and 50 kWp fuel cell achieved an LCOE of $0.0673/kWh, an NPC of $817 668, an 8.5-year payback period, and a remarkable ~74% reduction in CO2 emissions compared to the grid-only baseline, with PVsyst confirming an average energy output of 4.21 kWh/kWp/day and a performance ratio of 86%. This research contributes to the development of an integrated techno-economic design framework for grid-connected hybrid renewable systems incorporating hydrogen energy storage for institutional applications. The findings provide policymakers, university administrators, and energy planners with valuable insights to support sustainable campus energy transitions and to formulate cost-effective renewable energy integration strategies aligned with Malaysia’s low-carbon energy goals and policies.