Hybrid microgrid for microfinance institutions in rural areas – A field demonstration in West Africa

Abstract

We present a hybrid energy microgrid optimization model for a microbank in a remote rural residential area. The model is based on the use of renewable (wind turbines & solar photovoltaic (PV)) and conventional (gasoline generators) energy sources and battery storage systems. We conducted a detailed assessment of a typical microbank’s load, residential loads and energy resources in a village called Ajasse-Ipo in Kwara State, Nigeria. We performed the modeling of a hybrid microgrid system, followed by an economic analysis and sensitivity analysis to optimize the hybrid system design. We performed simulations based on the energy resources available (solar PV, wind, gasoline generator & battery energy storage system) to satisfy the energy demands of the microbank, while the excess energy was supplied to meet the demand of the community loads, i.e. water pumping machine and rural home lighting. The results obtained showed that the hybrid system comprising the solar PV/battery/diesel was most techno-economically viable with a Net Present Cost (NPC) and Cost of Energy (COE) of $468,914 and 0.667$/kWh, respectively. Comparing these results with those obtained using analytical methods, the solar PV, battery and converter sizes obtained were slightly higher than the optimal system configurations as produced by HOMER. The proposed hybrid energy system also allowed to achieve almost 50% reductions in CO2, CO, unburned hydrocarbons, particulate matter, SO2 & NO2. The system can be applicable for other rural regions in the developing countries with similar environmental conditions.