Optimizing Decentralized Solar PV Microgrids for Rural Electrification: A Techno-Economic Analysis of Off-Grid Communities in Eastern Indonesia

Abstract

Access to electricity is still a significant challenge for development in some remote rural areas of Eastern Indonesia, particularly in those areas that are not yet connected to the national electricity grid. However, these areas are also rich in solar energy potential that can be utilized to meet their electricity needs in a sustainable manner. In this work, the technical and economic viability of implementing a solar photovoltaic (PV) based microgrid is analyzed to tackle the persistent problem of rural electrification. A numerical methodology was employed and energy system modelling was performed with the HOMER Pro software utilizing solar radiation data from NASA’s Surface Meteorology and Solar Energy (SSE) database. The results of simulation show the optimal system size for the solar PV is 60 kW, the size of the inverter is 40 kW, and the battery bank is 240 kWh for the lithium-ion battery. This scheme can produce a maximum of 98,400 kWh/year with a reliability rate of 99.1%. The proposed system is financially viable with the Net Present Cost (NPC) of USD 198,400 and the Levelized Cost of Energy (LCOE) of 0.22 USD/kWh, which is about 22% less expensive than powering with diesel. Along with the technical adaptation, this research also introduces a community based governance model guided by the Business Model Canvas and administered by a village owned enterprise (BUMDes). The results contribute a useful guideline for the design of renewable energy-based rural electrification--policies, especially for conducting rural electrification in isolated regions where traditional electricity-infrastructure is hardly available.