Hybrid energy systems can provide various benefits to an island diesel power system. This paper analyses the technical and economic viability of hybrid energy system in the Masirah Island power system in Oman. The methodology involves the use of Hybrid Optimization Model for Electric Renewable (HOMER) for the optimization of the proposed hybrid system. The simulation software package DIgSILENT is used to model and simulate the integration of the proposed hybrid system to the existing network. Different scenarios are considered in both the hybrid system optimization and the assessment of the impact of the hybrid energy system integration implemented different connection scenarios. The obtained results show that the hybrid energy system composed of diesel, photovoltaic and wind generator units is the most economically feasible option since it provides the lowest system net present cost, operating cost and cost of energy, while it also improves the voltage profile at the point of connection.
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