Economic feasibility assessment of optimum grid-connected PV/battery systems to meet electricity demand for industrial buildings in Saudi Arabia

This study presents a comprehensive analysis of the energy performance and economic feasibility of optimal power generation systems, including an electrical network and a grid-connected PV/battery system, designed to meet the electricity demands of an industrial building in Saudi ‘Arabia's Eastern region. The building, located in Abqaiq City, spans approximately 29,000 m² and has an average annual electrical consumption of 6,500 MWh. The primary focus is on assessing the economic feasibility of these systems under local grid conditions. Simulations using PVsyst software were conducted for three configurations: grid-connected PV and PV with battery. The findings indicate that bifacial PV modules increase energy harvesting in coastal arid climate regions, with specific production ranging from 2,235 to 2,158 kWh/kWp/year and a PR between 95.9 % and 92.6 %. The grid-connected PV system is more feasible under industrial electricity tariffs, with a levelized cost of energy of $0.016/kWh, an NPV of $4,233,274, an ROI of 426.5 %, and a payback period of 4.7 years. These systems achieve energy savings of approximately 66 % for grid-connected PV and 89 % for hybrid PV/battery systems. Additionally, commercial and global tariffs significantly enhance the NPV and ROI of both systems, reducing the payback period and improving economic feasibility. Under commercial tariffs, the grid-connected PV system excels in ROI and payback period, while the hybrid system outperforms in NPV under global tariffs. By addressing economic and climate challenges in harsh coastal environments, this work provides valuable insights for sustainable investment decisions in an industrial city context.