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

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  • Ramchandran, Neeraj
  • Pai, Rajesh
  • Parihar, Amit Kumar Singh

Abstract

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.

Suggested Citation

  • Ramchandran, Neeraj & Pai, Rajesh & Parihar, Amit Kumar Singh, 2016. "Feasibility assessment of Anchor-Business-Community model for off-grid rural electrification in India," Renewable Energy, Elsevier, vol. 97(C), pages 197-209.
    • Handle: RePEc:eee:renene:v:97:y:2016:i:c:p:197-209
    DOI: 10.1016/j.renene.2016.05.036
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    Citations

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    Cited by:

    1. Kumar, Jitendra & Suryakiran, B.V. & Verma, Ashu & Bhatti, T.S., 2019. "Analysis of techno-economic viability with demand response strategy of a grid-connected microgrid model for enhanced rural electrification in Uttar Pradesh state, India," Energy, Elsevier, vol. 178(C), pages 176-185.
    2. Ray, Manojit & Chakraborty, Basab, 2021. "Impact of demand response on escalating energy access with affordable solar photovoltaic generation in the Global South," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    3. Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    4. Bhattacharyya, Subhes C. & Palit, Debajit & Sarangi, Gopal K. & Srivastava, Vivek & Sharma, Prerna, 2019. "Solar PV mini-grids versus large-scale embedded PV generation: A case study of Uttar Pradesh (India)," Energy Policy, Elsevier, vol. 128(C), pages 36-44.
    5. Weinand, Jann Michael & Scheller, Fabian & McKenna, Russell, 2020. "Reviewing energy system modelling of decentralized energy autonomy," Energy, Elsevier, vol. 203(C).
    6. Yong Long & Chengrong Pan & Yu Wang, 2018. "Research on a Microgrid Subsidy Strategy Based on Operational Efficiency of the Industry Chain," Sustainability, MDPI, vol. 10(5), pages 1-26, May.
    7. 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.
    8. Sweta Singh & Adam Slowik & Neeraj Kanwar & Nand K. Meena, 2021. "Techno-Economic Feasibility Analysis of Grid-Connected Microgrid Design by Using a Modified Multi-Strategy Fusion Artificial Bee Colony Algorithm," Energies, MDPI, vol. 14(1), pages 1-20, January.
    9. Hu, Bo & Zhou, P. & Zhang, L.P., 2022. "A digital business model for accelerating distributed renewable energy expansion in rural China," Applied Energy, Elsevier, vol. 316(C).
    10. MacCarty, Nordica A. & Bryden, Kenneth Mark, 2017. "Costs and impacts of potential energy strategies for rural households in developing communities," Energy, Elsevier, vol. 138(C), pages 1157-1174.
    11. Khan, Hassan Abbas & Ahmad, Husnain Fateh & Nasir, Mashood & Nadeem, Muhammad Fatiq & Zaffar, Nauman Ahmed, 2018. "Decentralised electric power delivery for rural electrification in Pakistan," Energy Policy, Elsevier, vol. 120(C), pages 312-323.
    12. Ribó-Pérez, David & Herraiz-Cañete, Ángela & Alfonso-Solar, David & Vargas-Salgado, Carlos & Gómez-Navarro, Tomás, 2021. "Modelling biomass gasifiers in hybrid renewable energy microgrids; a complete procedure for enabling gasifiers simulation in HOMER," Renewable Energy, Elsevier, vol. 174(C), pages 501-512.
    13. Fenling Feng & Tianzuo Zhang & Chengguang Liu & Lifeng Fan, 2020. "China Railway Express Subsidy Model Based on Game Theory under “the Belt and Road” Initiative," Sustainability, MDPI, vol. 12(5), pages 1-16, March.
    14. Parihar, Amit Kumar Singh & Sethi, Virendra & Banerjee, Rangan, 2019. "Sizing of biomass based distributed hybrid power generation systems in India," Renewable Energy, Elsevier, vol. 134(C), pages 1400-1422.
    15. Li, Chong & Zhou, Dequn & Zheng, Yuan, 2018. "Techno-economic comparative study of grid-connected PV power systems in five climate zones, China," Energy, Elsevier, vol. 165(PB), pages 1352-1369.
    16. Augusto Montisci & Marco Caredda, 2021. "A Static Hybrid Renewable Energy System for Off-Grid Supply," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    17. Yong Long & Yu Wang & Chengrong Pan, 2018. "Incentive Mechanism of Micro-grid Project Development," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    18. Demirci, Alpaslan & Akar, Onur & Ozturk, Zafer, 2022. "Technical-environmental-economic evaluation of biomass-based hybrid power system with energy storage for rural electrification," Renewable Energy, Elsevier, vol. 195(C), pages 1202-1217.

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