Abstract
The Integrated Rural Energy Planning (IREP) framework offers a unified road map for locating, planning and operating decentralized renewable hybrid off-grid energy systems for localized (rural) applications in low-income countries. This paper presents the culmination of the IREP framework and aims to illustrate the final step of the IREP framework for two communities in Nigeria. It is focused on two aspects. Firstly, the techno-economic modeling (investment and operation optimization) of a hybrid mini-grid system using HOMER Pro, a techno-economic evaluation tool; and evaluating the benefits of demand side management (DSM) based on energy efficiency on the overall system economics using a scenario-based approach. Secondly, the conceptualization of a sustainable business model using the business model canvas scheme to deliver measurable socio-economic impacts in these communities. The results provide valuable insights into rural electrification via renewable hybrid mini-grids powered primarily with solar photovoltaic technology. Transcending mere electricity access, electricity is provided for productive uses (considering disaggregated end-uses) by harnessing other dispatchable renewable energy resources such as waste biomass. Given high share of rural population in developing countries, these insights are applicable in these regions and further the realization of the United Nations’ goal of sustainable energy (SDG7) and sustainable cities and communities (SDG11).
Highlights
The incidence of energy poverty, energy insecurity and low electricity access has persisted around the globe, especially in sub-Saharan Africa, where high tariffs and unreliable and unavailable energy access are a stark reality [1,2]
The NPC decreases while the levelized cost of electricity (LCOE) increases with discount rate (DR)
The NPC and the LCOE are more sensitive to the diesel price (DP) than the biomass price (BP) for Onye-okpon, irrespective of adopted capital costs
Summary
The incidence of energy poverty, energy insecurity and low electricity access has persisted around the globe, especially in sub-Saharan Africa, where high tariffs and unreliable and unavailable energy access are a stark reality [1,2]. Renewable hybrid mini-grids (RHMGs) refer to mini-grids that incorporate two or more electricity generation options encompassing renewable energy (RE) resources coupled to other RE and/or fossil fuel units [27]. They often utilize a significant share of RE resources and may operate either in an isolated mode or in a grid-interactive mode [26]. RHMGs have numerous advantages over single source-based decentralized energy systems They are more efficient and reliable, with reduced storage capacity needs [26,27,29], and provides the most cost-effective alternative for rural electrification [30]. This is normally further complicated by a process that involves preliminary modeling, business model conceptualization, resource planning, and project
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