In many countries around the world, the power grid infrastructure is insufficient to meet the Energy demand. This poses a great challenge for different industry applications like mining, tourism resorts, telecom and agriculture farming. Those applications usually are located in deserted areas hence relying on Diesel Generator as a main power source is essential [1]. With the expectations of increased fuel prices in addition to high fuel transportation cost, the levelized cost of Energy (LCOE) from the diesel generators became dramatically high. From the other hand, the PV solar system prices have been reduced in the last decade hence combining PV/Diesel Generator became a very attractive solution to reduce the cost of Energy as shown in figure (1). Figure (1): PV/Diesel generator combination This paper focuses on the selection of an appropriate PV Solar system size to be integrated with a diesel Generator working in island operation mode to reduce the cost of generated electric energy and to determine the most economic feasible solution of the system. The system is analyzed by HOMER software which yields the minimum levelized cost of energy over the project's lifespan and the minimum net present cost is identified and suggested as the most economic option. This paper studies the performance of the diesel generator by adding additional PV source and the new system is called Hybrid.
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