Renewable Energy in Hybrid Mini-Grids and Isolated Grids: Economic Benefits and Business Cases

The aim of this study is to compare average generation costs of a renewable hybrid to a diesel only power plant – not to compare different hybrid technologies or renewable power sources to each other. With PV electricity - despite rapidly falling technology costs - still representing a comparatively expensive source compared to some other renewables, this assessment provides a conservative view of the potential cost savings through hybridisation. While PV is an obvious technology (and offers the benefit of reliable resource data), site assessments may point to other renewable energy sources that would permit cheaper hybridisation. The study is structured as follows: 1) Introduction; 2) Selected sites; 3) Hybridisation: potential and benefits; 4) Economic viability assessment; 5) Financial viability assessment; and 6) Conclusion.