Abstract
In Oman, the economy is shifting from oil exportation to a diversified economy. Also, as the growing population is seeking for a better quality of life, the electricity demand is increasing. However, there is a decline of gas resources, mostly used in the electric power generation, and a need to participate in the world efforts to mitigate climate change. To cope with these issues, the government triggered renewable energy pilot projects in rural areas. To enhance the efficiency of such projects in rural Oman, a strategic techno-economic analysis of these projects is performed to assess the techno-economic feasibility of utilizing such renewable systems to support the existing diesel-based generation system in rural areas. Simulation results using HOMER 2.19 for different geographical rural areas in Oman indicate that the renewable systems can displace diesel generation significantly and the economical benefits of the resulting hybrid systems depended on load and renewable energy resources.