Techno-Economic and Environmental Analysis of an On-Grid and Off-Grid Renewable Energy Hybrid System in an Energy-Rich Rural Area: A Case in Indonesia

Energy access is crucial for rural development in developing countries, as electrification drives economic growth, creates employment opportunities, and enhances the quality of life for rural communities. This study aims to determine the feasibility of powering a remote community with a hybrid energy system (HRS) combining solar photovoltaic, wind, and biogas to generate electricity and meet the energy needs of the rural area. West Waru Village was selected as the case study area due to its abundance of renewable energy sources. The HOMER tool was employed to model and optimize the HRS, providing a detailed analysis of its technical, economic, and environmental aspects. Furthermore, the study's findings were analyzed through a sensitivity analysis, considering uncertainty factors such as village load consumption, solar radiation, wind speed, and biomass availability. The best configuration for an on-grid scheme included a 2,284 kW photovoltaic (PV) system, 388 unit vertical axis wind turbine (VAWT), and a 500 kW biogas generator, resulting in a net present cost (NPC) of $8,506,090, a cost of energy (COE) of $0.054/kWh, and a payback period of 5.79 years. This configuration also reduced carbon dioxide (CO2) emissions by 67.2% compared to grid electricity. The optimal configuration for an off-grid scheme consisted of a 5,491 kW PV system, 954 VAWT, a 500 kW biogas generator, and 4,850 batteries, with an NPC of $20,162,390 and a COE of $0.1601/kWh, reducing CO2 emissions by 99.993%. These findings can serve as a baseline for the government to develop renewable energy systems in West Waru.