Economic Comparison of Persian Gulf Water Desalination by Renewable Energy and Fossil Fuel

In order to meet the growing demand and the reduction of the growing gap between supply and demand for water, the desalination processes can be one of the effective options. One of the main technologies for water production is the desalination of sea water all around the world. The current research has been conducted in 2014 aiming to evaluate the economic feasibility of desalination of Persian Gulf’s water in terms of new energies and fossil energy and the model of life cycle cost has been used. The results indicate that the use of diesel energy, in other words, other fossil fuels compared with new solar- energy, for desalination process, is not more feasible from the economic perspective. Net present value in private discount rate with loan scenarios with solar energy is equal to 4776.30 million rials that is economically justified And with diesel fuel scenarios equal to -2970.64 million rials without economic justification .Sensitivity of desalination project of fossil fuels in comparison with the selling price of fresh water is too little, and this result in the use of solar energy is facing with an increasing trend, but the sensitivity of desalination projects of new energies compared to the selling price of fresh water is high, because the amount of variations is very high. Also the average cost obtained for both diesel and solar energy regarding the price of fresh water, in the state of solar energy is far less than fossil fuel. And finally, from the two of these projects the use of solar energy is more feasible and economical.