**5. Conclusion**

140 Fossil Fuel and the Environment

Fig. 14. Sensitivity analysis of fuel cost and investment rate on the COE.

Fig. 15. Sensitivity analysis of fuel cost and investment rate on the payback period.

year as given in Table 3.

The extra cost of the PV array and WTG in the system is obtained as the difference between the system cost of the PV-wind-diesel-battery system and the diesel-battery system from Table 2 and the rate of savings per year is obtained from the savings in the cost of fuel per A model called HARPSim was developed in MATLAB Simulink to demonstrate that the integration of WTGs and PV arrays into stand-alone hybrid electric power systems using DEGs in remote arctic villages improves the overall performance of the system. Improved performance results from increasing the overall electrical efficiency, while reducing the total fuel consumption of the DEG, the energy costs, and emissions.

The LCC cost analysis and the percentage annualized cost from the Simulink® model were comparable to those predicted by HOMER. The Simulink® model calculates the CO2, NOx and the PM10 emitted to the atmosphere over the period of one year. These results can also be utilized to calculate the avoided costs of emissions.

Distributed or hybrid energy systems which result in more economical and efficient generation of electrical energy could not only improve the lifetime and reliability of the diesel-electric generation systems in remote communities, but could also help to extend the future of non-renewable energy sources.
