Cost Benefit Analysis to select clean energy solutions in dairy farm milk collection posts in Azores.

Abstract

The  aim  of  this  paper  is  to  evaluate  the  possibility  of  implementation   of   alternative   renewable   energy   micro-generation installations in dairy farm milk collection posts, from    the    technical,    economical    and    environmental    perspectives. This   work   was   performed   through   a   dairy   farm   milk   collection  post  energy  audit,  to  perform  energy  profile  characterization  and  demand  requirements.  Following  that,  a   study   of   the   weather   conditions   was   done   and   the   obtained    data    (through    CLIMAAT    and    MacSIMAR    projects)   [11]   was   introduced   in   a   renewable   energy   solutions calculator (HOMER). Moreover, a system design from  the  available  portfolio  of  micro-generation  devices  was  defined  and  a  cost  benefit  analysis  of  the  selected  alternatives  was  done.  In  the  end  a  comparison  of  the  current  implemented  solution  with  alternative  designs  was  performed. Results show that from the analyzed solutions for this case, the set of PV (20Kw) and Wind (3KW) with no batteries is the  best  one,  since  it  presents  the  least  cost  of  energy,  the  smallest  initial  capital  and  the  highest  Net  Present  Cost.  The  sensitivity  analysis  derive  that  wind  micro-turbines  should  be  installed  except  if  the  solar  radiation  is  on  its  maximum value and that in no case the use of batteries is an advantage for the system operation. For  systems  requiring  a  certain  degree  of  energy  (in  this  case  with  an  average  of  350  kW/day),  the  implementation  of  micro  generation  systems,  like  the  ones  evaluated,  will  never  be  economically  viable  in  terms  of  Total  Economic  Value,  even  with  generous  feed-in  tariff  schemes.  It  is  preferable  that  the  grid  operator  makes  investments  in  renewable   energy   production.   To   improve   the   system   energy  performance,  the  options  should  be  focused  on  energy efficiency measures.