This document discusses mini-grid technology, including common energy sources, benefits, types, design procedures, economics, and examples in Nepal. Mini-grids involve small-scale electricity generation and distribution to a limited number of customers. Common energy sources include solar, wind, hydro, biomass, and diesel generators. Benefits are technical, financial, environmental, and social. Design considerations include cost, demand, operations and maintenance, grid connection potential, and distribution layout. The levelized cost of electricity depends on various technology and project factors. Mini-grids in Nepal include hydropower projects providing electricity to over 1.5 million people.

1. DESIGN, APPLICATION,
TECHNIQUES AND ECONOMICS
MINI GRID
TECHNOLOGY
Bishal Rimal
MSREE-075-004
IOE, Pulchowk Campus
Laltipur, Nepal

2. INTRODUCTION
• Mini-grid is an off-grid electricity distribution network
involving small-scale electricity generation. mini-grids
involves small-scale electricity generation (from 10kW
to 10MW), and the distribution of electricity to a limited
number of customers via a distribution grid that can
operate in isolation from national electricity transmission
networks and supply relatively concentrated
settlements with electricity at grid quality level.
(Cooperation, 2014).

3. INTRODUCTION

4. COMMON SOURCES OF MINI-GRID
TECHNOLOGY (USAID)
• Solar Photovoltaic
• Wind Power
• Hydropower
• Biomass
• Traditional Fuel Generators
• Hybrid Systems

5. BENEFITS OF MINI-GRID TECHNOLOGY
• Technical Benefit (Hazelton, Bruce, & MacGill, July 2014)
• Quick and Easy installment
• Can use to improve existing unreliable network
• Equipment lasts longer
• Very low chance of blackouts
• Financial Benefit
• Use multiple energy sources there by reducing LCOE
• Less malfunction and satisfied customers thus high willing ness to
pay

6. BENEFITS OF MINI-GRID TECHNOLOGY
• Environmental Benefit
• More environment friendly if renewable sources can be
incorporated
• Reduction on air and noise pollution
• Social Benefit
• Establishment of business and organization
• Creation of job and income generating activities
• Benefit to health care technology
• Strengthen community

7. TYPES OF MINI GRID TECHNOLOGY
• Diesel
• Hydro
• Biomass
• Wind/Solar PV/ Hybrid

8. DIESEL MINI-GRID
• Relatively low capital investment
• Well-understood technology with widespread technical
operating and maintenance capacity
• Easily ‘hybridised’ with solar PV and/or wind, which can be
added to lower fuel costs
• Potential for bio-diesel fuels
BENIFITS
CHALLANGES
• Escalating costs for fuel and maintenance
• Carbon emissions
• Diversion/theft of fuel reduces efficiency and greatly increases
costs in some business models.
• Intermittent use times, through regular scheduled or random
blackouts.

9. BIO MASS MINI-GRID
• Relatively low cost power fuel for combustion based systems
• For agro-processing companies, some control over on-site fuel
feedstock
BENIFITS
CHALLANGES
• Medium to high cost for gasifier based systems
• Limited experience to use this technology for rural
electrification
• Location-specific

10. HYDRO MINI-GRID
• Mature technology
• Low-cost power
• No diesel fuel needs
BENIFITS
CHALLANGES
• Requires constant hydro re-source
• Location-specific
• Often locations are already close to the main grid
• May not be economically viable when community is located
far from hydropower source

11. WIND/SOLAR PV/HYBRID
MINI GRID
• Flexible systems - can use various fuel sources
• Solar has rapidly falling investment costs per kW
• Lower diesel fuel consumption and lower reliance on external fuel
needs (energy security)
• Ease of operation and maintenance because of solid state
technology (solar, inverters)
BENIFITS
CHALLANGES
• Wind/Solar/Diesel hybrids require considerably more expensive
investments when battery storage is used
• Data needed for reliable assessment of renewable energy potential

12. MINI-GRID OPERATING MODE
• Isolated mode
• Grid connected mode

13. DESIGN PROCEDURE
Must consider:
• Trade-off cost
• Ability to develop power on demand
• Operation and Maintenance cost
• Grid connection potential
• Load efficiency and load flexibility
After sizing system, revisit availability and cost

14. • Define the geographic scope of the project
• Include total number of customer
• Type of customers
• Type of Settlement
• Land Terrain and ease of resources availability
• Consideration of policies and grid extension plans
• Assess the available energy resources
• Assess local energy resources, including quantity, availability, cost,
sustainability and potential conflicting uses.
• Select energy generation technology

15. • Size the system:
• Should have sufficient installed capacity to meet loads.
• Calculate variations in loads in half-hour intervals and estimate future
load growth
• Consider weather it is likely to connect national grid in near future
• Select System Configuration
• Determined by Generation technology, size, storage system
• Consider tradeoff in cost, maintainance requirement, efficiency, safety
and end use versatality
• AC/DC/AC-DC

16. • Design Distribution System:
• Design the system layout and select system attributes
• Mini-grid distribution systems are often more complex than those of
standard grids. Unlike standard grids, mini-grids may have
bidirectional power flows and multiple energy sources.
• Model system performance based on the preliminary layout and
system attributes
• Evaluate different conductor sizes based on the load allocated
across the distribution system.
• should consider the end-user system, including meters, while
designing the distribution system.

17. MINI GRID ECONOMICS
• Mini-grid operations, like any other business, must be
economically attractive.
• Risk-equivalent return is needed in order to attract
investment
• Fixed cost of mini-grids include:
• Generation
• Distribution hardware
• Variable costs includes:
• Operations
• Maintenance
• Management costs.

18. COST EFFECTIVENESS
Mini-grids are not always the most cost-effective choice for rural
electrification

19. WILLINGNESS TO PAY
• Willingness-to-pay surveys are essential, because the
financial feasibility of a mini-grid project depends largely
on the ability of users to pay a tariff that generates
enough revenue to cover the costs of operations,
maintenance and repairs for the mini-grid system.
• Two approaches of Survey
• maximum amount that a person says he or she is willing to pay
for electricity.
• the actual amount people already pay for kerosene lamps,
candles, flashlight batteries, diesel for a home generator or other
substitutes for mini-grid electricity

20. LCOE
• The LCOE of a mini-grid depends on the following
variables: (The economics of Mini Grid, 2018)
• Technology used in a mini-grid‟s design
• Size of mini-grid (bigger is generally cheaper due to economies of
scale)
• Cost of capital (high interest rates lead to higher LCOE)
• Tenure of the loan (long loans make for lower LCOE)
• Cost of labor, backup fuel (diesel) and replacement equipment
(batteries)
• Risk factors (political, payment and price variability)
• Project location

21. LCOE

22. HOUSEHOLD CONNECTION AND
PRODUCTIVE USE
• a foundation for sustainable economic development by
increasing incomes and improving welfare.
• focus on increased mechanization in the agriculture sector
• new opportunities for value-added processing, storage
and transport.
• lighting for education is a productive use
• Tools such as saws and drills, sewing machines and
larger-scale agricultural processing such as milling and
grinding as well as pumping, welding or modest
refrigeration.

23. MINI GRID IN NEPAL
• 6 MHPs total power capacity of 107 kW of Baglung
district through 8 km long 11 kV transmission line
forming Mini Grid which is now operated and managed
by local community named Urja Upatyaka Mini Grid Co-
Operative

24. MINI GRID IN NEPAL
• Nepal’s Alternative Energy Promotion Center (AEPC)
has helped develop more than 2,000 hydropowered
mini-grids, providing 30 MW of electricity to 1.5 million
people.
• 30-kilowatt capacity solar mini-grid project installed in
Miklajung Rural Municipality-1 in Morang district
• Ongoing 150kWp Solar Mini-grid system for Thabang
Rural Municipality ward No-1&2, Thabang, Rolpa District

25. THANK YOU!

26. REFERENCES
• (2011). Rural Electrification with Renewable Energy – Technologies, quality standards and
business. Allience for Rural Electrification.
• The economics of Mini Grid. (2018, Feb 13). Retrieved from USAID:
https://www.usaid.gov/energy/mini-grids/economics
• Bank, T. W. (n.d.). Retrieved 01 11, 2020, from
https://www.worldbank.org/en/news/feature/2016/07/07/mini-grids-bringing-low-cost-timely-
electricity-to-the-rural-poor
• Bank, T. W. (July 2016). Global Facility on Mini-grids. Energy Sector Management Assistance
Program.
• Cooperation, A.-E. R. (2014). Mini Grid Policy Tool Kit. Eschborn.
• Gujar, M., Datta, A., & Mohanty, P. (2013). Smart Mini Grid: An innovative distributed
generation based energy system. IEEE Innovative Smart Grid Technologies-Asia, 1-5.
• Hazelton, J., Bruce, A., & MacGill, I. (July 2014). A review of the potential benefits and risks
of photovoltaic hybrid mini-grid systems. Renewable Energy, 222-229.
• Inversion, A. R. (2000). Mini-Grid Design Manual. Washington D.C.
• Karki, N. R., Karki, R., Verma, A. K., & Choi, J. e. (2017). Reliable and Sustainable Electric
Power and Energy Systems Management. Sustainable Power Systems.
• Nagpal, K. (n.d.). Smart Mini-Grids: Innovative solutions to combat energy shortfall.
Retrieved 01 11, 2020, from Thomson Reuters Foundation:
http://news.trust.org//item/20121025054000-rslkp/
• USAID. (n.d.). Retrieved Janaury 11, 2020, from https://www.usaid.gov/energy/mini-
grids/technical-design/components
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