Feasibility Analysis of the Use of Hybrid Solar PV-Wind Power Systems for Grid Integrated Mini-grids in India

Abstract: Reliable electricity supply remains a major problem in rural India nowadays. Renewable off-grid solutions have been applied in the last decades to increase power supply reliability but often failed to be feasible due to their high energy costs compared to the national grid. Grid Integrated Mini-grids with Storage (GIMS) can provide reliable power supply at an affordable price by combining mini-grids and national grid facilities. However, research on the techno-economic feasibility of these systems in the country is very limited and unavailable in the public sphere. This research project analysed three different aspects of the GIMS feasibility. First, the feasibility of the use of hybrid wind and solar Photovoltaic (PV) systems in GIMS was analysed by comparing the Levelised Cost of Electricity (LCOE) and Net Present Cost (NPC) of solar PV and hybrid PV/Wind GIMS systems. Second, the potential savings GIMS can offer due to the possibility of selling power to the grid were quantified by comparing the LCOE and NPC of the system with and without grid export. Lastly, the cost of reliability of the power supply was represented by the influence of the allowed percentage of capacity shortage on the total cost of the system. The analysis was carried out by means of the software HOMER and was based on three case studies in India. The results of this analysis showed that the use of hybrid systems could generate savings of up to 17% of the LCOE of the GIMS system in comparison to solar mini-grids. Moreover, power sales to the grid enabled LCOE savings up to 35% with respect to mini-grid without power sell-back possibility. In addition, the LCOE could be reduced in between 28% and 40% in all cases by enabling up to a 5% of capacity shortage in the system.