Investment analysis of solar energy in a hybrid diesel irrigation pumping system in New South Wales, Australia

• Published in: Journal of cleaner production Vol. 224; pp. 444 - 454
• Main Authors: Powell, J.W., Welsh, J.M., Farquharson, R.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.07.2019
• Subjects: Benefit-cost analysis; Emissions; Irrigated cotton; Microgrid; Photovoltaic; Renewable energy; Photovoltaic; Benefit-cost analysis; Renewable energy; Microgrid; Irrigated cotton; Emissions
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2019.03.071

Off-grid groundwater cotton irrigators using traditional technologies have had few options to reduce water extraction costs. New options of blending of Alternating Current and Direct Current through an all-in-one soft start converter/controller offer opportunities to lower costs, diversify fuel sources and continuous off-grid power in remote locations. Diesel energy can be replaced by renewable fuel sources through installing an electric submersible pump powered by solar photovoltaic in combination with a diesel generator. An investment analysis using a discounted cashflow over 25 years showed a 23% internal rate of return and payback over 5 years. Benefits of installing a renewable fuel source included lower greenhouse gas emissions per bale of cotton produced and less labour to monitor and service traditional diesel irrigation plant. Emissions calculations reveal a reduction of 26%, or 35 kg CO2e per cotton lint bale, and an abatement of 2665 t/CO2e for the life of the project. The cost of emissions abatement under the Renewable Energy Target to displace almost one million litres of diesel was found to be $31 t CO2e. •A microgrid solution reducing energy costs and emissions is analysed for an irrigation pump in NSW, Australia.•The microgrid includes photovoltaic panels and a diesel generator used to power a submersible pump 24 h a day.•The analysis indicates a 5-year payback and 23 per cent internal rate of return for the investment.•Emissions are reduced by 26 per cent (per 227 kg cotton lint bale) equating to 2665 t/CO2e abatement over the project life.