The Economic Feasibility of using Renewable Energy in Iraqi Oil Fields

This study included over all about competition of renewable energy to the conventional energy, and the economic growth on the demand for renewable energy technology especially solar energy, and the increasing on its annual cost decline. Also, highlight on the most important projects applied in the oil fields in the Middle East and America. In this study, a design and economic simulation of the solar energy system was conducted as a source for generating electricity with a capacity of 1 megawatt and a comparison of the capital and operation cost between the solar energy system, diesel generators, government and private sectors stations at the same operating time and the same energy. The economic simulation has shown that there is a big difference between the capital costs, as the cost of the solar energy system is about (40-37%) higher than the cost of diesel generators and investment stations, respectively, for a maximum operating capacity of 1 megawatt/hour, but on the other hand, it is characterized by The solar energy system has a depreciation factor of 0.75% compared to its counterparts, which reaches 10%, and the standard of its energy cost is low, reaching 0.22 $/ kilowatt compared to other sources of energy. In addition, Payback period of the solar energy system was 9 years by saving fuel cost and its low operating cost that reach to 0.0183 $/kWh, compared to its counterparts from government sector station, diesel generators, power stations. (Fuel from the investor), and private sector stations (fuel from the investor), whose operating costs are (0.1, 0.076, 0.038, 0.1) $/kWh, respectively. The results showed that the solar system economically feasible, with lifetime 25 years, while the generator lifetime ten years only. The solar radiation system limits carbon emissions, as the amount of carbon emissions per kilowatt of energy using conventional fuels is (185-265) grams of CO 2 per kilowatt.


‫العراقية‬ ‫النفطية‬ ‫الحقول‬ ‫في‬ ‫المتجذدة‬ ‫الطاقة‬ ‫استخذام‬ ‫من‬ ‫االقتصادية‬ ‫الجذوى‬ ‫الخالصة‬
(REP), energy efficiency policy (EEP), and energy efficiency policy (BEEP). In particular, the proposed Paris Agreement in 2015 saw a global consensus on increased global warming aimed at controlling the average global temperature rise to 2 degrees Celsius in this century. [4] One way to meet the growing demand for energy, in conjunction with reduced emissions, is to integrate renewable energy generation technologies into oil and gas operations. Integrating renewable energy technology and reducing the amount of fuel used to produce, transport and refine oil can reduce both energy costs and emissions. The oil and gas industry has many aspects that require the integration of renewable energy technologies. Production facilities are often in remote locations and require large amounts of electricity that can be generated from renewable sources (wind and solar power).

Demand for renewable energy
Demand for renewable energy in the first quarter of 2020 increased about 1% over 2019 compared to other energy sources due to lower operating costs as in Figure (1). Reliance on renewable energy was about 30% for electricity generation worldwide, with a growth rate of 5% despite the disruptive factors caused by the Covid-19 crisis. [6]. Renewable energy is expected to be the fastest growing primary energy source over the next 20

Solar investment in oil and gas industry
In the oil and gas industry, renewable energy technology is used to solve the problems of providing electricity for production and providing the thermal energy needed for enhanced oil extraction technology. Solar energy is used for the purpose of providing electricity to some equipment in oil fields such as (well pumps, cathode protection of pipelines) and is used to supply energy to water treatment units in oil fields, in addition to meeting the energy needs of refineries.
Most oil fields are located within the area of high solar radiation, which allows the use and utilization of solar energy as an energy source, which is considered economic, especially if solar thermal technology is used.

Challenges facing Iraq in investing solar energy
Iraq needs a strategy to diversify the energy mix towards alternative sources, including renewable energy sources, as it will provide export-producing oil and gas to finance reconstruction. The transition to renewable energy would contribute reducing CO 2 emissions and bring a wide range of social and economic benefits to country, including job creation and contributing to the development of local economies.
The challenges that limit the implementation of renewable energy projects and the development of solar systems in Iraq are technical, industrial, policy and other challenges as follows: • Environmental conditions: These include climate changes and the geographical nature of the region.

Calculating the cost of PV systems in Iraq
In this section, an introduction was addressed on the latest simulation programs used globally in the process of designing PV systems and predicting the cost of capital and operational. In addition, the pvsys program was used to design the system with a production capacity of 1 mw and calculate capital and operational costs and net profit.

PV simulation systems
PV systems need to be improved in terms of technological maturity and operational costs in order to maintain a balance between supply and demand for electricity. One way to achieve this improvement is by predicting the use of performance-enhancing PV simulation software and for the purpose of giving a look at the costs of installing and operating systems, which are commonly used globally. Currently, a number of solar PV simulation programs have different features that make them more suitable for some tasks than others. One of the most important design simulations is System Advisor Model (SAM), Photovoltaic Systems (PVSyst)and PVLib. [20]

Photovoltaic System (PVSyst)
In this study the PVSyst simulation program was adopted as a simulation tool centered around modeling, simulation and analysis of PV systems.

Solar Radiation Identification
To calculate the variables of the solar power generation system, each one was calculated by Mika Watt. Depending on the geographical location of the selected area (east of Baghdad) and the solar radiation obtained through the program as shown in Table (1).

Number and Energy of Solar Panels
Through the simulation, it was found that the number of panels required was 2,272 tablets/mica watts, with an estimated capacity of 440 watts per panel. The required area for panels is about (4571)m 2 as the area of each board is 2 m 2 .
The two forms (10oop) show the performance of solar panels during the months of the year.

Capital and operational cost
The economic simulation of the system was carried out by using prices for panels and accessories according to local markets. the capital costs were calculated (CAPEX 508864$/Mwt) as in Table (2) and Figure (11

Carbon Emission
The shift from fossil fuels in energy production to alternative sources as well as its economic feasibility is important for environmental conservation. The amount of carbon emission per kilowatt of energy using conventional fuel ranges from (0.3-322) gramsCO 2 per kWh depending on the traditional fuel type used.

Solar System Costs Compared to other Energy Sources
Capex diesel generators cost between $800,000 and $900,000 for a maximum operating capacity of 1Mwhas shown in Table (3) and Figure ( (15) show that the operating cost of solar energy about 81% lower than the cost of government electricity supplying, 75% less than the operational cost of diesel generators and 51% less than the operational cost of investment station that depend on fuel from the beneficiary. The operational and capital cost of the solar system is reduced by less than half    In addition, LCEO (Levelized Cost of Energy) has calculated the energy cost standard, which is used as a standard and assessment of the cost of energy sources. Through the equation below: LCEO=sum of cost over lifetime/sum of energy produced over life time. The results indicate: • Economically Good: The solar project is better and good for the following reasons: 1. The solar system is used for a period of 25 years, while the generator is only 10 years, meaning that the government will bear a double cost once and a half if the diesel generator is selected within a period of 25 years and in return the beneficiary will have additional costs and expenses added to the total cost of the generator.

LCEO energy cost standard value drops
3. The solar system is environmentally friendly and does not need fuel or materials that harm the environment in addition to noise absence • Good accounting: The diesel generator project is better because it achieved more revenue (net flow is higher) but it is not economically considered the reasons above and the goal of the government unit is to provide the best modern non-profit service Power station emit many gases such as carbon oxides and nitrogen that affect the climate, and the amount of carbon dioxide emissions depends on the type of fuel used in power plants as shown in Figure (17). On the other hand, the solar system is environmentally friendly, it does not produce any harmful residues, and solar panels have shown that it does not produce any harmful emissions.