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Solar Energy 84 (2010) 710–714

www.elsevier.com/locate/solener

Optimization and life-cycle cost of health clinic PV system

for a rural area in southern Iraq using HOMER software
Ali Al-Karaghouli, L.L. Kazmerski *
National Renewable Energy Laboratory, 1617 Cole Blvd., Golden, CO 80401, USA

Received 30 December 2008; received in revised form 17 November 2009; accepted 27 January 2010
Available online 25 February 2010

Communicated by: Associate Editor Elias Stefanakos

Abstract

This paper addresses the need for electricity of rural areas in southern Iraq and proposes a photovoltaic (PV) solar system to power a
health clinic in that region. The total daily health clinic load is 31.6 kW h and detailed loads are listed. The National Renewable Energy
Laboratory (NREL) optimization computer model for distributed power, “HOMER,” is used to estimate the system size and its life-
cycle cost. The analysis shows that the optimal system’s initial cost, net present cost, and electricity cost is US$ 50,700, US$ 60,375,
and US$ 0.238/kW h, respectively. These values for the PV system are compared with those of a generator alone used to supply the load.
We found that the initial cost, net present cost of the generator system, and electricity cost are US$ 4500, US$ 352,303, and US$ 1.332/
kW h, respectively. We conclude that using the PV system is justified on humanitarian, technical, and economic grounds.
Ó 2010 Published by Elsevier Ltd.

Keywords: Photovoltaics (PV); Stand-alone system; Rural electrification; Rural area in Iraq; System; Design

1. Introduction tricity produced on site has proven capable of delivering

Most of the rural areas in southern Iraq are still undev-
eloped and in a chaotic state after the invasion, and there is
a need to provide these areas with electricity. Small stand-
alone photovoltaic (PV) electrification systems can play a
strategic role in the region’s development. The region
enjoys a huge amount of solar radiation during the entire
year. Although capable of providing plentiful and reliable
electricity, this resource is largely untapped. The solar sys-
tems can satisfy the electrical needs of clinics, schools, and
other social places in a way that can positively affect
healthcare and education, ensuring adequate services for
the population. An excellent use of these systems is in
health clinics. The relation between health and energy is
compelling, and as interdependent factors, they largely
determine the progress of rural development. Reliable elec-
*
Corresponding author. Tel.: +1 303 384 6600; fax: +1 303 384 6481.
E-mail address: kaz@nrel.gov (L.L. Kazmerski).
high-quality electricity for vaccine refrigeration, lighting,
communication, medical appliances, clean water supply,
and sanitation (World Health Organization, 1996).
2. Feasibility of the proposed system
The design of the proposed system used to power the
health clinic was done according to the solar international
design manual (Solar Energy International, 2004). The
load total capacity was found to be 31.6 kW h/day. The
system consists of PV modules, batteries, charge controller,
inverter, and the necessary wiring and safety devices. The
system layout diagram is shown in Fig. 1.
The system feasibility analysis was performed using the
HOMER software developed by the National Renewable
Energy Laboratory (NREL) to assist the design of micro-
power systems. HOMER is a computer model that simplifies
the task of evaluating design options for both off-grid and
grid-connected power systems for remote, stand-alone, and

0038-092X/$ - see front matter Ó 2010 Published by Elsevier Ltd.

doi:10.1016/j.solener.2010.01.024
 A. Al-Karaghouli, L.L. Kazmerski / Solar Energy 84 (2010) 710–714 711

room, two treatment rooms, small pharmacy, and two rest-

rooms. The medical equipment, lighting, and other devices
used in this clinic are the following: refrigerator (80 W),
freezer (80 W), vaporizer (50 W), oxygen concentrator
(300 W), electric sterilizer (1500 W), water pump (100 W),
color TV set (130 W), 15 florescent lamps (20 W each),
seven ceiling fans (60 W each), and three evaporative cool-
ers (500 W each).
The estimated daily working hours of the medical equip-
ment and other devices are as follows: fluorescent lamps
(exteriors and interiors), 12 h/day; TV set, 6 h/day; refrig-
erator and freezers, 14 h/day; ceiling fans, 12 h/day; vapor-
izer, 3 h/day; oxygen concentrator, 2 h/day; electric
sterilizer, 3 h/day; and water pump, 6 h/day. The system
is assumed to work for 6 days a week. Our analysis found
that the total connected wattage is 4460 W and the total
average daily load is 31.6 kW h. The load analysis calcula-
tion is listed in Table 1.
Fig. 1. Block diagram of photovoltaic system. A small base load of 0.18 kW occurs from 5 pm until
7 am. This load is for outside lighting and some inside
distributed-generation (DG) applications. HOMER’s opti- lighting, whereas the majority of the load occurs during
mization and sensitivity analysis algorithms allow one to eval- the day time (8 am to 5 pm). Fig. 2 illustrates the load pro-
uate the economic and technical feasibility of a large number file. The scaled data for simulation is shown in Table 2.
of technology options and to account for variation in technol- The solar resource was used for the site of the Al-Ham-
ogy costs and energy resource availability. HOMER models mar lagoon in southern Iraq, located at 30°570 North
both conventional and renewable-energy technologies. latitude and 46°510 East longitude. Solar radiation data
HOMER models a power system’s physical behavior for this region were obtained from the NASA surface mete-
and its life-cycle cost, which is the total cost of installing orology and solar energy Web site. (NASA Surface Mete-
and operating the system over its life span. HOMER allows orology and Solar Energy, 2004). Table 3 shows the
the modeler to compare many different design options monthly average of solar radiation for this area. The
based on their technical and economic merits. It also assists annual average solar radiation is 5.65 kW h/m2/day.
in understanding and quantifying the effects of uncertainty Fig. 3 shows the solar resource profile over a 1-year period.
or changes in the inputs.
4. System components and estimated prices
3. Assumptions and HOMER model inputs
The proposed system consists of PV modules, batteries,
3.1. Clinic load analysis charge controller, inverter, auxiliary diesel generator, and
the rest of the balance-of-systems, which includes modules
The clinic building comprises the following rooms: structure, wiring, fuses, and other system safety devices.
administration room, doctor room, nurses’ room, waiting The prices for the PV system devices were taken from the
Table 1
Stand-alone electric load worksheet (abbreviated).
Individual load Qty  Volt  Amps = Watts Watts  Use  Use  7 = Wh Wh
AC DC h/d d/week days AC DC
Lamps 13 220 0.1 260 12 6 7 2675
Lamps (out) 2 220 0.1 40 2 7 7 792
Refrigerator 1 220 0.364 80 14 7 7 1120
Freezer 1 220 0.36 80 14 7 7 1120
Vaporizer 1 220 0.23 50 3 6 7 129
Oxygen conc. 1 220 1.37 300 2 6 7 515
Elec. steril. 1 220 6.82 1500 3 6 7 3858
Water pump 1 220 0.46 100 6 6 7 515
TV set 1 220 0.59 130 12 6 7 1338
Ceiling fan 7 220 0.273 420 12 6 7 4320
Evap. cooler 3 220 2.27 1500 12 6 7 15,428

AC total connected watts: 4460 W AC average daily load: 31,600 W h

DC total connected watts DC average daily load
712 A. Al-Karaghouli, L.L. Kazmerski / Solar Energy 84 (2010) 710–714

4.1. PV array

The PV array is an interconnection of PV modules or

panels that produces direct-current (DC) electricity in direct
proportion to the global solar radiation incident upon it,
independent of its temperature and voltage to which it is
exposed. The suggested PV panels to be used in the system
simulation are 210 W (at 1000 W/m2 and 25 °C) and 24 V
and have estimated capital and replacement cost of US$
7.00/W. This cost includes shipping, tariffs, mounting hard-
ware, control system, wiring, installation, and dealer mark-
Fig. 2. Hourly load profile.
ups. The lifetime is assumed to be 30 years. A derating fac-
tor of 90% was applied to the electric production from each
panel. The panels were modeled as fixed and tilted south at
Table 2 an angle equal to the latitude of the site. Capacities of dif-
Scaled data for simulation.
ferent PV panels (0, 1, 2, 3, 4, 5, 6, 8, and 10 kW) were con-
Data source Synthetic sidered in the analysis.
Daily noise 15%
Hourly noise 20% 4.2. Batteries
Scaled annual average 31.5 kW h/day
Scaled peak load 5.62 kW
Load factor 0.233 The battery is capable of storing a certain amount of DC
electricity at fixed round-trip energy efficiency, with limits
as to how quickly it can be charged or discharged without
Table 3 causing damage, and how much energy can cycle through it
Monthly average solar radiation. before it needs to be replaced. HOMER assumes that the
Month Clearness index Average radiation properties of the battery remain constant throughout its
(kW h/m2/day) lifetime and are not affected by external factors such as
Jan. 0.640 3.687 temperature. The chosen battery has a 6-V, 225-Ah capac-
Feb. 0.650 4.558 ity. The estimated price of each battery is US$ 135. Its life-
Mar. 0.680 5.891 time is considered to be 845 kW h of throughput per
Apr. 0.720 7.326 battery. Different numbers of batteries (0, 80, 100, 120,
May 0.730 8.111
140, 160, and 180) were considered in this analysis.
Jun. 0.720 8.241
Jul. 0.690 7.761
Aug. 0.690 7.235 4.3. Inverter
Sep. 0.700 6.408
Oct. 0.700 5.238 An inverter converts electric power from DC to alternat-
Nov. 0.650 3.918
ing current (AC). Its efficiency is assumed to be 90% for all
Dec. 0.590 3.165
Average 5.65 sizes considered. The estimated price of an inverter is US$
0.90/W, and its lifetime is up to 15 years. Inverters of var-
The clearance index is the fraction of insolation at the top of the atmo-
sphere which reaches the surface of the earth. ious sizes (0, 2, 3, 4, 5, 6, 8, and 10 kW) were considered in
the analysis.

4.4. Generator

A generator consumes fuel to produce electricity and

possibly heat as a by-product. A vast range of generators
are available (diesel, gasoline, propane, and biofuel). In this
analysis, we used a generator producing electricity that
operates on diesel fuel, because it is more efficient than
the others and its lifetime is longer. The estimated price
of the generator is US$ 1.50/W. We considered various
sizes (0, 1, 2, 3, 4, 5, 6, 8, and 10 kW) in the analysis.

Fig. 3. Solar radiation profile. 5. System analysis

Solarbuzz company report for solar energy electricity The simulation process serves two purposes. First, it
prices (Solarbuzz, 2008). determines whether the system is feasible. HOMER
 A. Al-Karaghouli, L.L. Kazmerski / Solar Energy 84 (2010) 710–714 713

considers the system to be feasible if it can adequately
serve the electric load and satisfy any other constraints
imposed by the user. Second, it estimates the life-cycle cost
of the system, which is the total cost of installing and oper-
ating the system over its lifetime. To be equitable, such
comparisons must account for both capital and operating
costs. Life-cycle cost analysis includes all costs that occur
within the life span of the system. HOMER uses the total
net present cost (NPC) to represent the life-cycle cost of a
system. The total NPC condenses all the costs and reve-
nues that occur within the project lifetime into one lump
sum in today’s dollars, with future cash flows discounted
back to the present using the discount rate.
In the optimizing process, HOMER simulates every sys-
tem configuration. Table 4 presents the HOMER simula-
tion results for a diesel price of US$ 0.40/L and an
interest rate of 0% (since the government will be in charge
of installing the system). The table shows that the greatest
optimal result is achieved when the system is composed of
6-kW PV modules, 80 batteries, and a 3-kW inverter, and
the least optimal result is when only the generator is used.
The initial cost, NPC, and electricity cost for this system is
US$ 50,700, US$ 60,500, and US$ 0.238/kW h, respec-
tively. The simulation result also shows that the second
optimum system is for 8-kW PV modules, 80 batteries, a
5-kW inverter, and a 2-kW generator. The total initial
and net present costs of this system are US$ 69,500 and
US$ 78,212; the electricity cost is US$ 0.272/kW h. The
most expensive system is when we use the generator alone,
with an initial cost, NPC, and electricity cost of US$ 4500,
US$ 352,303, and US$ 1.332, respectively. The diesel gen-
erator’s high electricity cost is due to its low fuel efficiency.
The most-efficient diesel generator generally produces 2.5–
3.0 kW h/L when run at high loading. Efficiency drops off
sharply at low loads. If a gasoline generator is used the
price of the produced electricity will much higher. This is
due to its poor fuel efficiency (2.0 kW h/L) and short life-
time (typically 1000–2000 operating hours).
5.1. Effect of interest rate and diesel price on electricity cost
Such projects in developing countries are usually under-
taken by the government, which is why we assumed 0%
interest rate when analyzing the system. The effect of differ-
ent interest rates on the cost of electricity produced from
the PV system is shown in Fig. 4a. The figure shows that
at 6% interest rate, the cost of the electricity produced is
almost doubled (US$ 0.444/kW h).
When the generator alone is in operation, the price of
fuel has a large impact on the cost of electricity produced
(see Fig. 4b). This is due to its low efficiency as discussed
earlier. The simulation showed that varying the price from
US$ 0.40/L to US$ 1.00/L increases the cost of electricity
produced from US$ 1.33 to US$ 1.653.

Table 4
Categorized optimization results.
PV Gen1 Batt Conv. Initial Total COE ($/ Ren Capacity Diesel Gen 1
(kW) (kW) (kW) capital NPC kW h) Frac. shortage (L) (h)
6 80 3 $ 50,700 $ 60,375 0.238 1.00 0.19
8 2 80 5 $ 69, 500 $ 78,212 0.272 0.99 0.00 52 90
2 80 2 $ 10, 800 $ 0.760 0.00 0.11 4022 6094
200,896
10 2 5 $ 77, 500 $ 0.786 0.83 0.02 1985 6063
224,606
3 $ 4500 $ 1.332 0.00 0.14 5669 8759
352,303

Fig. 4. Effect of (a) interest rate on electricity cost and (b) diesel price on electricity cost.
714 A. Al-Karaghouli, L.L. Kazmerski / Solar Energy 84 (2010) 710–714

Table 5 expensive system is when we use a generator alone, with

Amount of emissions prevented by using a photovoltaic system instead of
diesel generator.
Type of emission Emission (kg/year)
Carbon dioxide (CO2) 14,927
Carbon monoxide (CO) 36.8
Nitrogen oxide (NOx) 329
Unburned hydrocarbon (HC) 4.08
Sulfur dioxide (SO2) 30.0
Suspended particles 278
5.2. Environmental benefits
Conventional fuel use for the equivalent power genera-
tion results in the emission of significant amounts of green-
house gases. By adapting renewable-energy technologies,
the emission of all these harmful gases can be substantially
reduced. Table 5 shows the emissions prevented according
to our analysis of using a PV system instead of a diesel gen-
erator for this small project.
6. Conclusion
Using the HOMER software computer model, we deter-
mined that the most economic system for a remote health
clinic in southern Iraq having a daily load of 31.6 kW h
is composed of 6-kW PV modules, 80 batteries (225 Ah
and 6 V), and a 3-kW inverter. The total initial cost, net
present cost, and cost of electricity produced from the sys-
tem are US$ 50,700, US$ 60,375, and US$ 0.238/kW h,
respectively. The second choice is when we use a system
of 8-kW PV modules, 80 batteries, a 5-kW inverter, and
a 2-kW generator. The total initial cost, net present cost,
and cost of electricity produced are US$ 69,500, US$
78,212, and US$ 0.272/kW h, respectively. The most
an initial cost, net present cost, and cost of electricity pro-
duced of US$ 4500, US$ 352,303, and US$ 1.332, respec-
tively. The simulation also shows that when we use an
interest rate of 6%, the price of the electricity produced
from the PV system and the generator system alone were
US$ 0.444/kW h and US$ 1.367/kW h, respectively. For
diesel prices of US$ 0.50, 0.60, 0.70, 0.80, 0.90, and 1.00/
L, the cost of electricity produced from the generator was
US$ 1.386, 1.439, 1.492, 1.546, 1.60, and 1.653, respec-
tively. This analysis shows that the price of electricity pro-
duced from the diesel generator is four times greater than
that produced from the PV system, which highlights the
benefit of using this system in remote areas. The analysis
also shows that using this small PV system instead of a die-
sel generator can prevent the release of 14,927 kg/year of
CO2, 36.8 kg/year of CO, 329 kg/year of NOx, 4.08 kg/year
of HC, 30 kg/year of SO2, and 278 kg/year of suspended
particles.
Acknowledgement
This work was funded by the U.S. Department of
Energy under Contract No. DE-AC36-08-GO28308.
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Available from: www.solarbuzz.com.
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