The mission of improving technology and environment using renewable energy-based microgrid applications are developing interest globally because of their reliability and efficiency in supplying power for grid-tied and off-grid modes. South African rail freight industry is still lagging behind with regard to renewable energy technologies within its rail freight yards. However, as part of the 4th industrial revolution, more renewable energy smart grids and energy costs saving technologies in rail freight yards should be prioritized in order to ensure contingency and to reduce energy expenses and greenhouse gas emissions. In view of the above, the aim of this paper is to investigate the possible and most efficient method of supplying electricity from renewable energy hybrid system to Salkor rail freight yard in Saldanha bay. The hybrid-microgrid designed using solar PV and wind turbine as distributed energy generation will act as the first method of electricity supply for the rail yard. Lithium-ion batteries will provide the energy storage system. The system will be grid-tied with the planned power-saving schedules using an energy management system. A feasibility was performed where an electrical generator was included as part of the hybrid microgrid system in order to examine the viability of the microgrid system. The calculations of energy balances and the determination of the feasibility of the configuration as well as the estimation of installation and operating costs of the microgrid system for a period of 20 years was done using HOMER Energy software.
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