Microgrids for Rural Electrification: A critical review of best practices based on seven case studies Carnegie Mellon University University of California, Berkeley Microgrids for Rural Electrification: A critical review of best practices based on seven case studies Authors: Daniel Schnitzer, Deepa Shinde Lounsbury, Juan Pablo Carvallo, Ranjit Deshmukh, Jay Apt, and Daniel M. Kammen Photo Credit: Daniel Schnitzer Published by the United Nations Foundation, January 2014 Carnegie Mellon University University of California, Berkeley A street with distribution lines at a WBREDA microgrid site on Sagar Island, India. B Microgrids for Rural Electrification Table of Contents List of Tables ............................................................................................................................................................... List of Figures ............................................................................................................................................................. Acronyms .................................................................................................................................................................... Acknowledgements .................................................................................................................................................. Executive Summary ................................................................................................................................................... Chapter 1: Introduction ............................................................................................................................................ Microgrid Performance Indicators ...................................................................................................................................... Managing Complexity: Drivers Behind Microgrid Operational Modes ......................................................................... Report Structure .................................................................................................................................................................... Chapter 2: Background on Microgrids ................................................................................................................... Microgrids Defined ............................................................................................................................................................... The Global State of Microgrids ........................................................................................................................................... Microgrids in the Context of the Energy Access Ladder ................................................................................................. Benefits of rural microgrids ................................................................................................................................................. Chapter 3: Study Background ................................................................................................................................. Case study method ............................................................................................................................................................... Case Study and Field Visit Profiles ...................................................................................................................................... Chapter 4: Microgrid Best Practices from the Literature ...................................................................................... Strategic Planning ................................................................................................................................................................. Operations ............................................................................................................................................................................. Social Context ....................................................................................................................................................................... Chapter 5: Lessons Learned from Case Studies .................................................................................................... Chhattisgarh Renewable Energy Development Agency (CREDA), India ....................................................................... DESI Power, India .................................................................................................................................................................. Green Empowerment/Tonibung/Partners of Community Organization (PACOS) (GE/T/P), Malaysia ....................... Electricité d’Haiti (EDH), Haiti .............................................................................................................................................. Husk Power Systems (HPS), India ........................................................................................................................................ Orissa Renewable Energy Development Agency (OREDA), India ................................................................................. West Bengal Renewable Energy Development Agency (WBREDA), India .................................................................... Chapter 6: Case Study Narratives and Analysis .................................................................................................... Chhattisgarh Renewable Energy Development Agency (CREDA), India ....................................................................... DESI Power, India .................................................................................................................................................................. Green Empowerment/Tonibung/PACOS (GE/T/P), Malaysia .......................................................................................... Electricité d’Haiti (EDH), Haiti .............................................................................................................................................. Husk Power Systems, India .................................................................................................................................................. Orissa Renewable Energy Development Agency (OREDA), India ................................................................................. West Bengal Renewable Energy Development Agency (WBREDA), India .................................................................... Chapter 7: A Critical Review of Microgrid Best Practices Through Case Studies ............................................. Strategic Planning ................................................................................................................................................................. Operations: Commercial and Financial Considerations .................................................................................................. Operations: Technical........................................................................................................................................................... Social Context ....................................................................................................................................................................... Chapter 8: Conclusion .............................................................................................................................................. Business models and insights on sustainability ................................................................................................................ Insights on Policy Elements ................................................................................................................................................. Bibliography ............................................................................................................................................................... Microgrids for Rural Electrification i List of Tables Table 1: Relevance of factors determining sustainability for three microgrid business models .................... Table 2: Developer Descriptions ............................................................................................................................. Table 3: Description of microgrid site visits ........................................................................................................... Table 4: Tariffs for microgrids visited with one tariff level .................................................................................... Table 5: CREDA microgrid development, 2010-2012.......................................................................................... Table 6: DESI Power microgrid development ....................................................................................................... Table 7: DESI Power microgrid customers ............................................................................................................. Table 8: GE/T/P microgrid development ............................................................................................................... Table 9: GE/T/P microgrid customer table ............................................................................................................ Table 10: EDH microgrid development ................................................................................................................