Chapter 15 - Isolated and Mini-Grid Solar PV Systems: An Alternative Solution for Providing Electricity Access in Remote Areas (Case Study from Nepal)

Abstract

Nepal is a landlocked country with difficult geographical terrain and without fossil reserves. However, the country has been blessed with abundant renewable resources. All these facts have contributed to the advantages of renewable-energy-based decentralized rural electrification in Nepal. When making technological choices, the cost-effectiveness of the technologies must be considered. This study presents solar photovoltaic (PV) alternatives for rural electrification, considering off-grid solar PV for individual households and solar mini-grids for electrifying rural communities, and comparing them with the supply option with grid extension and electricity from a diesel generator for the case of Kyangshing village in Sindhupalchowk, Nepal. The levelized cost of electricity (LCOE) production with these various alternatives is compared, along with the sensitivity analysis for some of the crucial input assumptions. Analysis has shown that a solar PV-based mini-grid system is the most cost-effective option for electrification in the village. The business model and operational and management model for such a solar PV-based mini-grid system have also been proposed for guaranteeing the sustainability of the system.