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

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  • Bhattacharyya, Subhes C.

Abstract

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.

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  • Bhattacharyya, Subhes C., 2015. "Mini-grid based electrification in Bangladesh: Technical configuration and business analysis," Renewable Energy, Elsevier, vol. 75(C), pages 745-761.
    • Handle: RePEc:eee:renene:v:75:y:2015:i:c:p:745-761
    DOI: 10.1016/j.renene.2014.10.034
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    3. Das, Barun K. & Hoque, Najmul & Mandal, Soumya & Pal, Tapas Kumar & Raihan, Md Abu, 2017. "A techno-economic feasibility of a stand-alone hybrid power generation for remote area application in Bangladesh," Energy, Elsevier, vol. 134(C), pages 775-788.
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    8. Alam, Majbaul & Bhattacharyya, Subhes, 2017. "Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh," Energy, Elsevier, vol. 139(C), pages 433-446.
    9. Akinyele, D.O. & Rayudu, R.K., 2016. "Community-based hybrid electricity supply system: A practical and comparative approach," Applied Energy, Elsevier, vol. 171(C), pages 608-628.
    10. Bahramara, S. & Moghaddam, M. Parsa & Haghifam, M.R., 2016. "Optimal planning of hybrid renewable energy systems using HOMER: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 609-620.
    11. Fazlur Rashid & Md. Emdadul Hoque & Muhammad Aziz & Talukdar Nazmus Sakib & Md. Tariqul Islam & Raihan Moker Robin, 2021. "Investigation of Optimal Hybrid Energy Systems Using Available Energy Sources in a Rural Area of Bangladesh," Energies, MDPI, vol. 14(18), pages 1-24, September.
    12. Islam, Md Shahinur & Akhter, Ruma & Rahman, Mohammad Ashifur, 2018. "A thorough investigation on hybrid application of biomass gasifier and PV resources to meet energy needs for a northern rural off-grid region of Bangladesh: A potential solution to replicate in rural ," Energy, Elsevier, vol. 145(C), pages 338-355.
    13. Subhes C. Bhattacharyya, 2018. "Mini-Grids for the Base of the Pyramid Market: A Critical Review," Energies, MDPI, vol. 11(4), pages 1-21, April.
    14. Andrea Cabanero & Lars Nolting & Aaron Praktiknjo, 2020. "Mini-Grids for the Sustainable Electrification of Rural Areas in Sub-Saharan Africa: Assessing the Potential of KeyMaker Models," Energies, MDPI, vol. 13(23), pages 1-31, December.
    15. Hartvigsson, Elias & Stadler, Michael & Cardoso, Gonçalo, 2018. "Rural electrification and capacity expansion with an integrated modeling approach," Renewable Energy, Elsevier, vol. 115(C), pages 509-520.
    16. Yilmaz, Saban & Dincer, Furkan, 2017. "Optimal design of hybrid PV-Diesel-Battery systems for isolated lands: A case study for Kilis, Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 344-352.
    17. Bey, M. & Hamidat, A. & Benyoucef, B. & Nacer, T., 2016. "Viability study of the use of grid connected photovoltaic system in agriculture: Case of Algerian dairy farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 333-345.
    18. Aberilla, Jhud Mikhail & Gallego-Schmid, Alejandro & Stamford, Laurence & Azapagic, Adisa, 2020. "Design and environmental sustainability assessment of small-scale off-grid energy systems for remote rural communities," Applied Energy, Elsevier, vol. 258(C).
    19. Abhi Chatterjee & Daniel Burmester & Alan Brent & Ramesh Rayudu, 2019. "Research Insights and Knowledge Headways for Developing Remote, Off-Grid Microgrids in Developing Countries," Energies, MDPI, vol. 12(10), pages 1-19, May.
    20. Chowdhury, Tamal & Chowdhury, Hemal & Miskat, Monirul Islam & Chowdhury, Piyal & Sait, Sadiq M. & Thirugnanasambandam, M. & Saidur, R., 2020. "Developing and evaluating a stand-alone hybrid energy system for Rohingya refugee community in Bangladesh," Energy, Elsevier, vol. 191(C).
    21. Amutha, W. Margaret & Rajini, V., 2016. "Cost benefit and technical analysis of rural electrification alternatives in southern India using HOMER," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 236-246.
    22. Md. Abdullah-Al-Mahbub & Abu Reza Md. Towfiqul Islam & Hussein Almohamad & Ahmed Abdullah Al Dughairi & Motrih Al-Mutiry & Hazem Ghassan Abdo, 2022. "Different Forms of Solar Energy Progress: The Fast-Growing Eco-Friendly Energy Source in Bangladesh for a Sustainable Future," Energies, MDPI, vol. 15(18), pages 1-28, September.
    23. Onu, Uchenna Godswill & Silva, Giuseppe Scabello & Zambroni de Souza, Antonio Carlos & Bonatto, Benedito Donizeti & Ferreira da Costa, Vinicius Braga, 2022. "Integrated design of photovoltaic power generation plant with pumped hydro storage system and irrigation facility at the Uhuelem-Amoncha African community," Renewable Energy, Elsevier, vol. 198(C), pages 1021-1031.
    24. Md Asaduzzaman Shoeb & GM. Shafiullah, 2018. "Renewable Energy Integrated Islanded Microgrid for Sustainable Irrigation—A Bangladesh Perspective," Energies, MDPI, vol. 11(5), pages 1-19, May.
    25. Shahzad, M. Kashif & Zahid, Adeem & ur Rashid, Tanzeel & Rehan, Mirza Abdullah & Ali, Muzaffar & Ahmad, Mueen, 2017. "Techno-economic feasibility analysis of a solar-biomass off grid system for the electrification of remote rural areas in Pakistan using HOMER software," Renewable Energy, Elsevier, vol. 106(C), pages 264-273.

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