An Economic Evaluation of Small-scale Distributed Electricity Generation Technologies

Numerous renewable and small-scale distributed generation (DG) technologies have now progressed to the stage where their technical feasibility has been proven and full-sclae projects have been successfully implemented worldwide. This paper surveys the available DG technologies and models their economic performance in rural areas of India with particular emphasis on comparing the costs of hybrid DG systems with conventional grid connectionsfor remote rural village-level applications. Modelling inputs are based on demand, fuel, availability, costs and local operating conditions found in the Kachchh District of Gujarat, India. Results demonstrate that hybrid power systems can economically provide electricity in rural areas if local energy resources are adequate. Additional environmental and economic benefits of hybrid DG are also quantified for the case study area and reveal a 40% reduction in diesel fuel use compared to diesel genset only systems.