Life-cycle cost analysis of electricity backup solutions: a South African case study

Load-shedding has emerged as one of the major crises in South Africa, disrupting the daily lives and economic activities of its citizens. The persistent power outages and frequent blackouts pose a significant challenge in public hospitals, impacting various stakeholders and hindering the ability of these institutions to provide timely services to the community. This study uses a life cycle cost analysis of two electricity back-up options to assess and recommend the most viable option. The research utilizes the case of one of the largest healthcare facilities in the Mpumalanga Province, and compares the efficacy of two electricity backup options, namely photovoltaic Solar and diesel generators. The simulation of PV Solar and diesel generator configurations and cost estimation were conducted using Homer Pro software. The findings indicate that the PV Solar system outperforms the diesel generator, offering a significantly lower life cycle cost that is approximately two times less than that of the diesel generator. The findings of this study provide factual decision-making apparatus to business leaders on the viability of the different options available as back-up when load-shedding is in effect.