The expansion of the industrial sector and the continuous increase in population are
the reasons for the ever-increasing demand for electricity, which directly burdens
the central grid. Absence and remoteness from the central grid make off-grid power
generation the most reliable source of electricity to meet the needs of peripheral
areas. Electrification of remote areas through decentralized generation using renewable
energy sources has emerged as a low-cost and practically viable solution. Domestic-level
energy trading makes the system more cost-effective. This study develops a hybrid
energy model consisting of PV and diesel generators to electrify a remote village,
considering the feasibility analysis of consumer-prosumer-based energy trading potential.
First, resource evaluation and total load demand are estimated at the selected site,
then system sizing optimization and techno-economic feasibility are evaluated using
HOMER Pro software. Based on the optimized system, a new system is proposed and developed
using HOMER Pro software to investigate the energy trading potential. Economic rationality
is checked using the economic parameters of net present cost, levelized cost of electricity,
initial capital, and operation and maintenance cost of the system. A sensitivity analysis
is performed further to evaluate the system's feasibility under different conditions.
This study fills the energy trading sector gap by providing a more efficient and cost-effective
simulation-based study. The results show that the proposed system has a 22 % lower
net present cost, 66 % lower levelized cost of electricity, 25.5 % lower operation
and maintenance cost, and 4.36 % lower initial cost.
