Abstract
Hybrid solar photovoltaic (PV) and wind generation in combination with green ammonia as a seasonal energy storage vector offers an excellent opportunity to decrease the levelized cost of electricity (LCOE). In this work, an analysis is performed to find the most cost-effective configuration of power-to-ammonia-to-power (P2A2P). In P2A2P, wind and solar resources are combined with energy storage to design a resilient electricity grid. For daily generation, batteries are utilized for energy storage, whereas ammonia is employed to cope with seasonal fluctuations. The costs of energy storage capacity have a significant influence on the LCOE. Therefore, this work studies the effect of solar/wind hybrid generation systems and energy storage capacity on the LCOE. A base case of the region of De Aar in South Africa was selected because this inland location has excellent wind and solar resources. The optimized battolyzer and Haber-Bosch design capacity led to an overall load factor of 20-30%. At a 30% load factor, a hybrid system with 37% wind-based and 63% solar-based energy generation capacity was the most cost-effective configuration, resulting in a LCOE of 0.15 USD/kWh at a 5% annual discount rate. In an optimistic scenario for PV costs, the LCOE achieved is essentially unaltered (0.14 USD/kWh), while the contribution of wind and PV changes to 25 and 75%, respectively. This analysis indicates that appropriate designing of hybrid energy solutions will play a key role in determining the final energy storage capacities needed to reduce the LCOE. While these costs for LCOE are above those reported for coal-powered electricity in South Africa (e.g., 0.072 USD/kWh for businesses and 0.151 USD/kWh for households), a carbon tax of 50 USD/ton of CO(2) can increase these costs to 0.102 and 0.191 USD/kWh, rendering a more promising outlook for the P2A2P concept.