Author: Shima Beheshti (University of Iceland) - Energy, water, and food are essential for human survival, with energy playing a key role in modern life. Since the Industrial Revolution, energy demand has grown rapidly, supporting transportation, technology, manufacturing, and agriculture [1, 2].
This study evaluates standalone hybrid renewable energy systems (HRES) optimized for residential applications in Reykjavík, Iceland, using the HOMER Pro software. Five energy configurations are modeled, using a diesel generator as the baseline and progressively integrating battery storage, photovoltaic (PV) panels, and fully renewable setups. Key performance indicators such as Levelized Cost of Energy (LCOE), Net Present Cost (NPC), and greenhouse gas emissions are analyzed to determine the most cost-effective and sustainable solutions. Results reveal that a hybrid PV-battery system with minimal diesel backup achieves an LCOE of $0.585/kWh and a payback period of 1.36 years. These findings underscore the potential of hybrid renewable systems to enhance energy resilience, reduce operational costs, and minimize environmental impacts in off-grid and cold-climate applications. Policy incentives and flexible financing mechanisms are recommended to accelerate their adoption.