Feasibility and Sensitivity Analysis of an Off-Grid PV/Wind Hybrid Energy System Integrated with Green Hydrogen Production: A Case Study of Algeria

Abstract

Algeria’s transition toward sustainable energy requires the exploitation of its abundant solar and wind resources for green hydrogen production. This study assesses the techno-economic feasibility of an off-grid PV/wind hybrid system integrated with a hydrogen subsystem (electrolyzer, fuel cell, and hydrogen storage) to supply both electricity and hydrogen to decentralized sites in Algeria. Using HOMER Pro, five representative Algerian regions were analyzed, accounting for variations in solar irradiation, wind speed, and groundwater availability. A deferrable water-extraction and treatment load was incorporated to model the water requirements of the electrolyzer. In addition, a comprehensive sensitivity analysis was conducted on solar irradiation, wind speed, and the capital costs of PV panels and wind turbines to capture the effects of renewable resource and investment cost fluctuations. The results indicate significant regional variation, with the levelized cost of energy (LCOE) ranging from 0.514 to 0.868 $/kWh, the levelized cost of hydrogen (LCOH) between 8.31 and 12.4 $/kg, and the net present cost (NPC) between 10.28 M$ and 17.7 M$, demonstrating that all cost metrics are highly sensitive to these variations.