The comparison of tidal power plants with solar and combined cycle power plants in the southern coast of Iran

Abstract

Renewable energy is a core issue when it comes to energy resources today. However, the use of tidal energy has received less attention compared to solar and wind energy. This study investigates the technical-economic evaluation of tidal power plants in three areas of Bushehr, Pol, and Khowr-e Musa, all located along the southern coast of Iran. Four economic indices including net present value (NPV), benefitcost ratio, capital return time, and internal rate of return are used. The study compares a tidal power plant with a solar and a Combined Cycle Gas Turbine power plant bearing a capacity of 10 MW. The results show that the total initial cost of a tidal power plant is 1.92 times higher compared to a PV and 7.16 times higher compared to a CCGT power plant. Due to the potential of solar and tidal energy, the three studied regions are economically different. The results show the NPV of a tidal power plant in Khowr-e Mousa region is 4.90 times higher than a PV power plant and 9.93 times higher than a CCGT power plant. In addition, the cost of energy production per kilowatt depends on the region and the type of power plant technology. The lowest cost of energy production is related to tidal energy in Khowr-e Musa region. The results of sensitivity analysis also show that the highest sensitivity is related to the initial cost and electricity sales rate. K E Y W O R D S economic evaluation, feed-in tariff (FIT), renewable energy, southern coasts of Iran, tidal power plants 1 | INTRODUCTION To satisfy its energy requirements, Iran is heavily dependent on fossil fuels. The country consumed 12.3 Exajoules of energy (Primary Energy) in 2019. Natural gas and oil accounted for almost all (97%) of Iran's primary energy consumption in 2019, albeit with marginal contributions from coal, hydropower, nuclear, and non-hydro renewable energy. A significant amount of primary energy is consumed in electricity generation sector. On the one hand, the demand for electricity increased from 119.3 Terawatt-hour (TWh) in 2000 to 318.6 TWh in 2019. On the other hand, CO 2 emission grew extensively from 351.5 million tons in 2000 to 670.7 million tons in 2019. 1The mean share of CO 2 emission from Iran to the Middle East in this period was about 30%Increasing concern over global climate change has forced many policy-makers to accept the importance of reducing greenhouse gas emissions, and in particular from electricity industry.* There has been an international urge for promotion of policy mechanisms that reduce greenhouse gas emissions and enhancement of clean renewable technologies for electricity generation. 2 Sustainable energy sources include solar, wind, geothermal, and ocean (tidal, wave, and thermal) power. Although the solar and wind energy are at the heart of renewable energy sources, the use of other energies has also been considered given the advancement of technology.Therefore, the introduction of renewable energy technologies can