IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v75y2015icp745-761.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148114006612
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2014.10.034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sen, Rohit & Bhattacharyya, Subhes C., 2014. "Off-grid electricity generation with renewable energy technologies in India: An application of HOMER," Renewable Energy, Elsevier, vol. 62(C), pages 388-398.
    2. Yadoo, Annabel & Cruickshank, Heather, 2010. "The value of cooperatives in rural electrification," Energy Policy, Elsevier, vol. 38(6), pages 2941-2947, June.
    3. Alam Hossain Mondal, Md. & Sadrul Islam, A.K.M., 2011. "Potential and viability of grid-connected solar PV system in Bangladesh," Renewable Energy, Elsevier, vol. 36(6), pages 1869-1874.
    4. Urmee, Tania & Harries, David, 2011. "Determinants of the success and sustainability of Bangladesh’s SHS program," Renewable Energy, Elsevier, vol. 36(11), pages 2822-2830.
    5. Bekele, Getachew & Palm, Björn, 2010. "Feasibility study for a standalone solar-wind-based hybrid energy system for application in Ethiopia," Applied Energy, Elsevier, vol. 87(2), pages 487-495, February.
    6. Nandi, Sanjoy Kumar & Ghosh, Himangshu Ranjan, 2009. "A wind-PV-battery hybrid power system at Sitakunda in Bangladesh," Energy Policy, Elsevier, vol. 37(9), pages 3659-3664, September.
    7. Chowdhury, Shahriar A. & Mourshed, Monjur & Kabir, S.M. Raiyan & Islam, Moududul & Morshed, Tanvir & Khan, M. Rezwan & Patwary, Mohammad N., 2011. "Technical appraisal of solar home systems in Bangladesh: A field investigation," Renewable Energy, Elsevier, vol. 36(2), pages 772-778.
    8. Lau, K.Y. & Yousof, M.F.M. & Arshad, S.N.M. & Anwari, M. & Yatim, A.H.M., 2010. "Performance analysis of hybrid photovoltaic/diesel energy system under Malaysian conditions," Energy, Elsevier, vol. 35(8), pages 3245-3255.
    9. Hafez, Omar & Bhattacharya, Kankar, 2012. "Optimal planning and design of a renewable energy based supply system for microgrids," Renewable Energy, Elsevier, vol. 45(C), pages 7-15.
    10. Khan, M.J. & Iqbal, M.T., 2005. "Pre-feasibility study of stand-alone hybrid energy systems for applications in Newfoundland," Renewable Energy, Elsevier, vol. 30(6), pages 835-854.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Molyneaux, Lynette & Wagner, Liam & Foster, John, 2016. "Rural electrification in India: Galilee Basin coal versus decentralised renewable energy micro grids," Renewable Energy, Elsevier, vol. 89(C), pages 422-436.
    2. 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.
    3. Akinyele, D.O., 2017. "Environmental performance evaluation of a grid-independent solar photovoltaic power generation (SPPG) plant," Energy, Elsevier, vol. 130(C), pages 515-529.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Bhattacharyya, Subhes C. & Palit, Debajit, 2016. "Mini-grid based off-grid electrification to enhance electricity access in developing countries: What policies may be required?," Energy Policy, Elsevier, vol. 94(C), pages 166-178.
    11. Oliver O. Apeh & Edson L. Meyer & Ochuko K. Overen, 2022. "Contributions of Solar Photovoltaic Systems to Environmental and Socioeconomic Aspects of National Development—A Review," Energies, MDPI, vol. 15(16), pages 1-28, August.
    12. Rajvikram Madurai Elavarasan & G. M. Shafiullah & Nallapaneni Manoj Kumar & Sanjeevikumar Padmanaban, 2019. "A State-of-the-Art Review on the Drive of Renewables in Gujarat, State of India: Present Situation, Barriers and Future Initiatives," Energies, MDPI, vol. 13(1), pages 1-30, December.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. Khalid Hanbashi & Zafar Iqbal & Dimitri Mignard & Colin Pritchard & Sasa Z. Djokic, 2023. "Modelling and Validation of Typical PV Mini-Grids in Kenya: Experience from RESILIENT Project," Energies, MDPI, vol. 16(7), pages 1-35, April.
    18. 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.
    19. 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.
    20. 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.
    21. 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.
    22. 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.
    23. 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).
    24. 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).
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Haghighat Mamaghani, Alireza & Avella Escandon, Sebastian Alberto & Najafi, Behzad & Shirazi, Ali & Rinaldi, Fabio, 2016. "Techno-economic feasibility of photovoltaic, wind, diesel and hybrid electrification systems for off-grid rural electrification in Colombia," Renewable Energy, Elsevier, vol. 97(C), pages 293-305.
    3. 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.
    4. 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.
    5. Erdinc, O. & Uzunoglu, M., 2012. "Optimum design of hybrid renewable energy systems: Overview of different approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1412-1425.
    6. 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.
    7. Sen, Rohit & Bhattacharyya, Subhes C., 2014. "Off-grid electricity generation with renewable energy technologies in India: An application of HOMER," Renewable Energy, Elsevier, vol. 62(C), pages 388-398.
    8. Park, Eunil & Kwon, Sang Jib, 2016. "Solutions for optimizing renewable power generation systems at Kyung-Hee University׳s Global Campus, South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 439-449.
    9. Chunqiong Miao & Kailiang Teng & Yaodong Wang & Long Jiang, 2020. "Technoeconomic Analysis on a Hybrid Power System for the UK Household Using Renewable Energy: A Case Study," Energies, MDPI, vol. 13(12), pages 1-19, June.
    10. William López-Castrillón & Héctor H. Sepúlveda & Cristian Mattar, 2021. "Off-Grid Hybrid Electrical Generation Systems in Remote Communities: Trends and Characteristics in Sustainability Solutions," Sustainability, MDPI, vol. 13(11), pages 1-29, May.
    11. 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.
    12. Han, Seulki & Won, Wangyun & Kim, Jiyong, 2017. "Scenario-based approach for design and comparatively analysis of conventional and renewable energy systems," Energy, Elsevier, vol. 129(C), pages 86-100.
    13. Sadaqat Ali & Zhixue Zheng & Michel Aillerie & Jean-Paul Sawicki & Marie-Cécile Péra & Daniel Hissel, 2021. "A Review of DC Microgrid Energy Management Systems Dedicated to Residential Applications," Energies, MDPI, vol. 14(14), pages 1-26, July.
    14. Fazelpour, Farivar & Soltani, Nima & Rosen, Marc A., 2014. "Feasibility of satisfying electrical energy needs with hybrid systems for a medium-size hotel on Kish Island, Iran," Energy, Elsevier, vol. 73(C), pages 856-865.
    15. Olatomiwa, Lanre & Mekhilef, Saad & Ismail, M.S. & Moghavvemi, M., 2016. "Energy management strategies in hybrid renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 821-835.
    16. Akikur, R.K. & Saidur, R. & Ping, H.W. & Ullah, K.R., 2013. "Comparative study of stand-alone and hybrid solar energy systems suitable for off-grid rural electrification: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 738-752.
    17. Goel, Sonali & Sharma, Renu, 2017. "Performance evaluation of stand alone, grid connected and hybrid renewable energy systems for rural application: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1378-1389.
    18. Abdilahi, Abdirahman Mohamed & Mohd Yatim, Abdul Halim & Mustafa, Mohd Wazir & Khalaf, Omar Tahseen & Shumran, Alshammari Fahad & Mohamed Nor, Faizah, 2014. "Feasibility study of renewable energy-based microgrid system in Somaliland׳s urban centers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1048-1059.
    19. Liu, Liuchen & Cui, Guomin & Chen, Jiaxing & Huang, Xiaohuang & Li, Di, 2022. "Two-stage superstructure model for optimization of distributed energy systems (DES) part I: Model development and verification," Energy, Elsevier, vol. 245(C).
    20. Ismail, M.S. & Moghavvemi, M. & Mahlia, T.M.I. & Muttaqi, K.M. & Moghavvemi, S., 2015. "Effective utilization of excess energy in standalone hybrid renewable energy systems for improving comfort ability and reducing cost of energy: A review and analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 726-734.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:75:y:2015:i:c:p:745-761. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.