A Modified Algorithm for Economic Evaluation between Diesel-Generator and PV Solar System

This paper aims to develop an algorithm for economic evaluation between a diesel-generator set (DGS) and a PV solar system according to Iraqi conditions and market. The criteria of economic evaluation is based on estimation of the life cycle cost (LCC) by determining of the initial cost, periodic maintenance cost, replacement cost, diesel fuel cost and the total energy yield over 25-year lifetime. A cost comparison between a conventional 125 kVA DGS (e.g. low-quality and high-quality types) and a 100kW PV solar system using the proposed algorithm. It is found that LCC (over 25-year lifetime) for the PV solar system is 44,430$ which is cheaper than the low-quality and the high-quality DGSs, which are 388,910$ and 436,380$, respectively. In order to highlight the effects of diesel fuel cost and energy yield on LCC, the percentage-profit (profit%) and percentage-loss (loss%) are demonstrated. It is concluded that over 25-year lifetime, the total profit% of the PV solar system is 112%, whilst the total loss% for both low-quality DGS and high-quality DGS are 86% and 76%, respectively.