Evaluation of choices for sustainable rural electrification in developing countries: A multicriteria approach

Rural electrification (RE) can be modelled as a multifactorial task connected to a large number of variables: decision makers need to choose the appropriate options by considering not only the techno-economic competitiveness but also socio-cultural dynamics and environmental consequences, making the task intricate. Many rural electrification projects have failed due to lack of attention to the issues beyond financial and technical dimensions. This paper presents a standardized approach for decision making concerning the extension of electricity services to rural areas. This approach first determines whether the supply provision should be grid expansion or off-grid on the basis of levelized cost of delivered electricity. If the grid expansion is found nonviable over off-grid options then a multicriteria decision aiding tool, SMAA-2 (Stochastic Multicriteria Acceptability Analysis), will evaluate off-grid technologies by aggregating 24 criteria values. While applying this approach, the delivered costs of electricity by the grid in remote areas within the 1–25 km distances vary in a range of 0.10–7.85 US$/kW h depending on the line lengths and load conditions. In the off-grid evaluation, the solar PV (photovoltaic) and biogas plants are found as the most preferable alternatives with 59% and 41% acceptability in their first rank, respectively.     

Sustainability assessment of renewable energy projects for off-grid rural electrification: The Pangan-an Island case in the Philippines

Renewable energy systems (RESs) have been promoted for rural electrification as an answer to the growing energy needs of communities while simultaneously satisfying environmental and resource scarcity problems. These off-grid systems however have several challenges in the perspective of sustainability due to the technically and financially weak recipients and users of the projects. There is still, however, less detailed understanding how the technical and economic aspects of the projects can properly match the social aspects to promote sustainability. This paper aimed to further understand the challenges and social impacts of rural electrification projects using RES through a case study of a centralized off-grid solar plant in the Philippines. The study used multiple correspondence analysis (MCA) to identify essential user attributes which explain the users’ electricity consumption behaviors. The community cooperative had difficulties maintaining the facility in the long term due to financial and capacity related challenges. A holistic approach dealing with the technical, economic and social aspects in developing RES projects promote sustainability.     

Low-carbon off-grid electrification for rural areas in the United Kingdom: Lessons from the developing world

Low-carbon off-grid electrification for rural areas is becoming increasingly popular in the United Kingdom. However, many developing countries have been electrifying their rural areas in this way for decades. Case study fieldwork in Nepal and findings from United Kingdom based research will be used to examine how developed nations can learn from the experience of developing countries with regard to the institutional environment and delivery approach adopted in renewable energy off-grid rural electrification. A clearer institutional framework and more direct external assistance during project development are advised. External coordinators should also engage the community in a mobilization process a priori to help alleviate internal conflicts of interest that could later impede a project.     

The determinants of rural electrification: The case of Bihar,India

This paper explores intra-state disparity in access to electricity and examines the determinants of electrification at the village level in Bihar, one of the underdeveloped states in India. Our field survey of 80 villages in 5 districts conducted in 2008–09 found that 48 villages (60%) are electrified when using the definition of electrification that a village is electrified if any one household in the village is connected to electricity. In the processes of electrification, approximately 40% of villages have been electrified in recent years. The econometric analyses demonstrate that location is the most important determinant of a village's electricity connection. Another important finding is that with the rapid progress of rural electrification under the recent government program and the tendency to connect the villages that are easily accessible, the collective bargaining power of the village, which used to significantly affect the process of electrification, has lost influence. This adversely affects remote villages. In order to extend electricity supplies to remote and geographically disadvantaged villages, the government needs to consider other options for sustainable electricity supply, such as decentralized distribution of electricity rather than the conventional connection through the national/local grids.     

Assessment of instruments in facilitating investment in off-grid renewable energy projects

Renewable off-grid solution plays a critical role in supporting rural electrification. However, off-grid Renewable Energy (OGRE) project financing faces significant challenges due to limited financing access, low affordability of consumers, high transactions costs and etc. Various supporting instruments have been implemented to facilitate OGRE investment. This study assesses the effectiveness of those instruments with a framework consists of three dimensions: feasibility, sustainability and replicability. The weights of each dimension in the framework and the scores of each instrument are assessed by expert surveys based on the Delphi method. It is suggested that all the three dimensions should be taken into consideration while assessing the instruments, among which feasibility and sustainability are considered as the most important dimensions in the assessment framework. Furthermore, the top-5 most effective instruments in facilitating OGRE investment are local engagement in operation and maintenance, loan guarantee, start-up grant, end user financing, and concessional finance. Developing countries that need to increase electrification, such as most of the ASEAN member states, could use these top scored instruments despite of their limited amount of public finance.     

Feasibility assessment of Anchor-Business-Community model for off-grid rural electrification in India

The concept of “micro-grids” as self-sustained power systems is driven largely by business models, which have to be developed by considering the perspectives of all the stakeholders. This study tests the feasibility of the Anchor-Business-Community model of off-grid electrification in a cluster of two Hamlets in Uttar Pradesh, from the perspective of a Renewable Energy Service Company. Telecom towers, Flour Mills and rural communities have been considered as the Anchor, Business and community customers respectively. Primary surveys have been carried out to assess socio-economic characteristics, renewable energy resource availability and energy demand. Cost savings has been assumed to be the primary incentive for the customers to switch to clean energy. Cash flow analysis has been done to estimate the level of profitability of the project with and without the current level of subsidy. Solar Photovoltaic systems, Biomass gasification systems and Solar-Biomass hybrid systems have been modelled using HOMER. The model for Solar PV system with subsidy was found to be the most robust out of all three models in the scenario analysis. Solar-Biomass hybrid systems and Biomass Standalone systems are found to have the potential to offer a healthy level of returns under the best case and most likely scenarios.     

Mini-grid based electrification in Bangladesh: Technical configuration and business analysis

This paper presents a local level study of a village off-grid system in Bangladesh. It applies an integrated methodology that identifies the demand in the off-grid village context using alternative scenarios. The techno-economic analysis of the optimal off-grid system architecture is then presented using HOMER software. Three energy resources are considered, namely solar energy, wind and diesel fuel. The optimal configuration suggested for the scenarios consists of diesel generators for the basic level of demand and PV-diesel hybrid for higher demand and reliable supply scenarios. The cost of electricity per kWh remains high for the basic level of supply and decreases as the system size increases. However, the capital and asset replacement costs increased considerably for bigger systems. The business case is then analysed for each scenario and it was found that it is practically impossible to reach grid price parity even with full capital cost subsidy, indicating significant amount of operating cost subsidy requirement that makes the larger systems financially unsustainable. Moreover, the small mini-grid system for the basic level of supply emerges as a cheaper option than providing the consumers with solar home systems. But the monthly electricity bill will become unaffordable for most consumers when demand restrictions are removed. Accordingly, the paper suggests a mini-grid based electricity supply to provide the basic level of provision alongside productive energy use during off-peak hours as the starting point. If the business develops and the demand improves, the system can be expanded subsequently using appropriate technology combinations.     

Simulation of off-grid generation options for remote villages in Cameroon

Off-grid generation options have been simulated for remote villages in Cameroon using a load of 110 kWh/day and 12 kWp. The energy costs of proposed options were simulated using HOMER, a typical village load profile, the solar resource of Garoua and the flow of river Mungo. For a 40% increase in the cost of imported power system components, the cost of energy was found to be 0.296 €/kWh for a micro-hydro hybrid system comprising a 14 kW micro-hydro generator, a 15 kW LPG generator and 36 kWh of battery storage. The cost of energy for photovoltaic (PV) hybrid systems made up of an 18 kWp PV generator, a 15 kW LPG generator and 72 kWh of battery storage was also found to be 0.576 €/kWh for remote petrol price of 1 €/l and LPG price of 0.70 €/m³. The micro-hydro hybrid system proved to be the cheapest option for villages located in the southern parts of Cameroon with a flow rate of at least 200l/s, while the PV hybrid system was the cheapest option for villages in the northern parts of Cameroon with an insolation level of at least 5.55 kWh/m²/day. For a single-wire grid extension cost of 5000 €/km, operation and maintenance costs of 125 €/yr/km and a local grid power price of 0.1 €/kWh, the breakeven grid extension distances were found to be 15.4 km for micro-hydro/LPG generator systems and 37.4 km for PV/LPG generator systems respectively. These results could be used in Cameroon's National Energy Action Plan for the provision of energy services in the key sectors involved in the fight against poverty.     

The value of cooperatives in rural electrification

The electricity sectors of many developing countries underwent substantial reforms during the 1980s and 1990s, driven by global agendas of privatization and liberalization. However, rural electrification offered little by way of market incentives for profit-seeking private companies and was often neglected. As a consequence, delivery models for rural electrification need to change. This paper will review the experiences of various rural electrification delivery models that have been established in developing countries, including concessionary models, dealership approaches and the strengthening of small and medium-sized energy businesses. It will use examples from the USA, Bangladesh and Nepal, together with a detailed case study of a Nepali rural electric cooperative, to explore the role that local cooperatives can play in extending electricity access. It is shown that although there is no magic bullet solution to deliver rural electrification, if offered appropriate financial and institutional support, socially orientated cooperative businesses can be a willing, efficient and effective means of extending and managing rural electricity services. It is expected that this paper will be of particular value to policy-makers, donors, project planners and implementers currently working in the field of rural electrification.     

To regulate or not to regulate off-grid electricity access in developing countries

As off-grid electrification receives global attention in the Sustainable Energy for All initiative, the role of regulation for this alternative form of electricity delivery requires a careful investigation. This paper asks whether the activity has to be regulated or not. It then tries to find out where regulation can be used and what type of regulation is appropriate. It suggests that for product-type delivery options, there is no justification for regulatory intervention in the sense of utility regulation but such intervention makes sense in the case of mini-grid-based off-grid delivery options. The paper considers the pros and cons of a generic license waiver, a simplified regulatory arrangement and a full-fledged regulatory supervision and suggests that a light-handed approach is appropriate in general to promote the activities of the sub-sector but more formal approaches may be required if the players do not abide by the rules. The paper also highlights some regulatory challenges and issues.     

Modelling an off-grid integrated renewable energy system for rural electrification in India using photovoltaics and anaerobic digestion

This work describes the design optimisation and techno-economic analysis of an off-grid Integrated Renewable Energy System (IRES) designed to meet the electrical demand of a rural village location in West Bengal – India with an overall electrical requirement equivalent to 22 MWh year⁻¹. The investigation involved the modelling of seven scenarios, each containing a different combination of electricity generation (anaerobic digestion with biogas combined heat and power (CHP) and photovoltaics) and storage elements (Vanadium redox batteries, water electrolyser and hydrogen storage with fuel cell). Micro-grid modelling software HOMER, was combined with additional modelling of anaerobic digestion, to scale each component in each scenario considering the systems' ability to give a good quality electricity supply to a rural community. The integrated system which contained all of the possible elements – except hydrogen production and storage presented the lowest capital ($US 71 k) and energy cost ($US 0.289 kWh⁻¹) compared to the scenarios with a single energy source. The biogas CHP was able to meet the electrical load peaks and variations and produced 61% of the total electricity in the optimised system, while the photovoltaics met the daytime load and allowed the charging of the battery which was subsequently used to meet base load at night.     

Field analysis of solar PV-based collective systems for rural electrification

This article analyses the long-term performance of collective off-grid photovoltaic (PV) systems in rural areas. The use of collective PV systems for the electrification of small medium-size villages in developing countries has increased in the recent years. They are basically set up as stand-alone installations (diesel hybrid or pure PV) with no connection with other electrical grids. Their particular conditions (isolated) and usual installation places (far from commercial/industrial centers) require an autonomous and reliable technology. Different but related factors affect their performance and the energy supply; some of them are strictly technical but others depend on external issues like the solar energy resource and users’ energy and power consumption. The work presented is based on field operation of twelve collective PV installations supplying the electricity to off-grid villages located in the province of Jujuy, Argentina. Five of them have PV generators as unique power source while other seven include the support of diesel groups. Load demand evolution, energy productivity and fuel consumption are analyzed. Besides, energy generation strategies (PV/diesel) are also discussed.     

Potential application of renewable energy for rural electrification in Malaysia

Energy poverty and lack of electricity in rural areas exacerbate the poverty of the developing countries. In Malaysia, 3.8% of the population lives below the poverty line and most of them are settled in rural areas. The electricity coverage in poor states is about 79% in comparison with 99.62% in Peninsular Malaysia. The renewable energy sources can be considered the best alternative to reduce the energy poverty of the rural areas where the grid extension through a difficult terrain and thick jungle is not possible or economic. In this study, the potential for applying renewable sources – solar, wind and hydropower – for rural electrification is investigated, especially in the poorest States. A comparative study on rural electrification policies, in order to have community approval, appropriate siting and financial benefits for the rural community, while considering the three categories of social, institutional and economic issues, is also examined. Finally, the Malaysian policies of rural electrification by applying renewable sources are explained. It is found that in Malaysia, with a maximum solar radiation of about 6.027 kWh/m² per day in Sabah and 5.303 kWh/m² per day in Sarawak, the potential for applying solar energy for electrification is too high. However, the potential for micro-hydropower in Sabah and Sarawak is found to be 3182 kW and 6317 kW through 18 and 22 sites, respectively.     

Energy access problem of the poor in India: Is rural electrification a remedy?

India accounts for a third of the world's population without access to electricity and about 40% of those without access to modern energy. Such a situation exists despite several initiatives and policies to support poor households. Alarmed by the gravity of the situation, the government has recently announced an ambitious programme of rural electrification. This paper looks into the energy access situation of India and argues that rural electrification alone is unlikely to resolve the energy access problem because of low penetration of electricity in the energy mix of the poor.     

European rural and other off-grid electrifications

Development and proliferation of renewable energies are sponsored since 1979 by the European Union. (Programme THERMIE and predecessors). In the frame of this programme more than 150 projects of all kinds with about 3000 photovoltaic energy supply systems have been or are going to be implemented in Europe. About 69 of these projects with 2289 single pv systems concern rural and other off grid electrifications of small size. 46 of these projects are completed, the others presently go on.The main features of the systems in nine European countries are presented. The main conclusions are:

• • For pv electrifications in rural areas the supply of AC through an appropriate inverter is the most preferable alternative and hybrid systems are much more suitable for stand-alone systems than systems with pv-only.

• • The inverters are at presented the weakest components of the systems.

• • Preventive maintenance and prompt repair of the installed systems is essential. An adequate solution for the maintenance problem has still to be found.

     

Initiative for 100% rural electrification in developing countries: Case study of Senegal

Sub-Saharan Africa has the lowest access to electricity in the World. In Senegal, less than 25% of the rural population benefit of electricity service. Solar energy offers an important potential to Senegal with over 3000 h of sunlight a year. This is a real opportunity to generalize the access to electricity. But, the efforts to bridge the gap must be diversified and completed. We approach the problem of rural electrification with a different point of view. Grid expansion and centralized solutions may be adequate for villages with a population organized in high-density of habitations. Small size villages or those with highly dispersed population may need different propositions because of cost. These regions will not be the priority of electrification programs. Furthermore, this rural population is characterized by its low income and saving. Such a conjuncture suggests the opportunity of a service based fees model for access to electricity. On the basis of a fees-for-service model, individual standalone photovoltaic systems may be a more appropriate solution to cover the priority needs of lighting and mobile phones battery charge for telecommunication. We present a pilot project in a village of Senegal to support the model and demonstrate its feasibility.     

Alternatives to grid extension for rural electrification: Decentralized renewable energy technologies in Vietnam

This paper examines the economic viability of stand-alone, household-sized renewable energy technologies, namely wind generator and solar PV for application in remote and rural areas of Vietnam. Three reference technologies are chosen. These are two solar PV systems of 130 and 100 Wp for solar conditions in the North and the South, respectively, and one 150 W wind turbine. It is found for all regions that levelized costs of PV energy are lower than the cost of energy from gasoline gen-set, and are cost-competitive with grid extension, especially for areas with low load density and low number of households to be electrified. Regarding wind energy, the viability is dependent on the location due to the wide variation of wind resource to topography. However, in locations with proper resources, wind energy is even more cost-competitive than solar PV. Thus, the use of either wind generator or solar PV is economically feasible in rural villages and remote areas of Vietnam. Policy recommendations for promoting the market development of renewable energy technologies are discussed in the final section of the paper.     

A decision support system for technologies of rural electrification

An interactive computer program has been developed to determine and to evaluate the optimal design of electricity distribution systems in rural areas. The program considers the costs and benefits of grid electrification, isolated diesel generators and centralized photovoltaics. It provides support for decisions on choices of technology. The program optimizes within the context of long-term load and system expansion; it runs on a 384K CPU microcomputer.     

The Brazilian experience of rural electrification in the Amazon with decentralized generation - The need to change the paradigm from electrification to development

There are at least 607 thousand households in the Brazilian Amazon that need to be attended with some form of regular electricity service. These households are not attended by the electricity sector through its electricity distribution companies and most of them have some form of precarious decentralized electricity generation that is not registered or regulated in the institutional framework. Diverse initiatives were taken by Brazilian government to attend these household through alternatives that relied on locally available renewable energy. This paper accesses this initiatives of rural electrification in the Brazilian Amazon. First an overview of the problems of rural electricity are discussed and its specificities in the Brazilian Amazon. Then the Brazilian institutional framework that organizes the decentralized electricity generation is described with its various limitations. The diverse initiatives undertaken to attend the rural communities in the Amazon since the 1990s are described, as well as how these initiatives are linked to the policies for rural electrification. The results shows that it can be inferred that sole market mechanisms are not sufficient to guarantee economic sustainability of these projects. This can be one of the reasons why traditional electricity distribution companies showed the lack of interest in promoting rural electrification with other means than grid extension. The most successful projects had financed efforts to integrate the generation of electricity into local development initiatives in order to guarantee sustainability and used substantial part of funding for local mobilization and organization. It needs a paradigm chance by treating these initiatives as local development initiatives and promoting alternative ways for its implementation through partnership between local new actors in the electricity sector and government and implementing policy on a local municipal level.     

A sizing methodology based on Levelized Cost of Supplied and Lost Energy for off-grid rural electrification systems

Off-grid renewable systems can play a pivotal role in the process of rural electrification, thus promoting local development. Moreover, scientific literature is increasingly addressing this issue through the concept of sustainability and appropriate technologies. With regards to this topic, we present a sizing methodology which better relates the results and the sizing process itself to the local context. Specifically, we address the research area of sizing methodologies for off-grid PV systems. Typically, the Loss of Load Probability (LLP) is a key parameter in these methodologies, but is difficult to set as regards the specific context. The proposed methodology employs the concept of Levelized Cost of Supplied and Lost Energy, it is based on the estimate of an economic Value of Lost Load, and eventually, the LLP results to be an output of the process. Therefore, the methodology uses only data characterizing the local situation and results better fit with population conditions. We also propose a simple approach to compute the Value of Lost Load and we apply the methodology for a rural area of Uganda. The results show that the methodology identifies a reliable system which supplies electricity with a fair cost while minimizing the energy bill of the consumers.