Cost comparison of solar home systems and PV micro-grid : The influence of inter-class diversity

Abstract: Nearly one fifth of the global population lacks access to electricity and electricity access is essential for economic growth and human well-being. SHSs and micro-grids both have the possibility of increasing the electricity access in developing countries. The decision to choose either SHSs or micro-grids for rural electrification is a complex task that must consider both the technological factors that separate these two systems and the non-technological factors. Separate times of peak load between households (inter-class diversity) has shown to be one major advantage for the use of micro-grids. Studies have shown that the diversity factor present in micro-grids can scale down the necessary capacity of PV modules and energy storage of up to 80%, in comparison to stand-alone systems (e.g. SHSs). These reductions are nevertheless based on assumed diversity factors, not using real load profiles and the necessary capacities are calculated using intuitive methods (known to be inexact). From interviews in a rural community of Nicaragua, the author generated load profiles and determined the diversity factor of the community. The load profiles were generated with a specially designed software to formulate realistic load profiles for off-grid consumers in rural areas. These load profiles were later used in the software HOMER where the diversity’s influence on required capacity and NPC were determined by comparing SHSs to a PV based micro-grid. The study showed that the required capacity and NPC of the inverter and charge controller are clearly decreased as an influence of inter-class diversity. The required PV and battery capacity are also decreased when a micro-grid is utilized, but these reductions are most likely a result from the limited nominal power per component considered in HOMER.