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Showing papers on "Rural electrification published in 2022"


Journal ArticleDOI
TL;DR: In this article , the authors used structured interviews to determine the best renewable energy choice for Pakistan's rural areas and found that solar energy is the best source of renewable energy in terms of pricing, life duration, operation, and maintenance costs.
Abstract: Pakistan has experienced energy poverty, as most of the people live in rural areas. Poor people are stereotyped as collecting the firewood and using the unclean energy sources to meet their residential energy needs. As a result, respondents in the provinces with the highest rates of energy poverty set a high priority on this research. Structured interviews were used to conduct the research in rural parts of Punjab and Sindh provinces. Due to the apparent country’s large population and rapid industrialization, conventional energy sources cannot meet the country’s present energy needs. Results revealed that energy poverty in rural areas had exposed the residents to security problems such as health dangers, fire accidents, time poverty, financial poverty, illiteracy, and other issues at various levels of severity. As a result, alternative energy sources must be explored. This research aims to determine the best renewable energy choice for Pakistan’s rural areas. In terms of pricing, life duration, operation, and maintenance costs, the results show that solar energy is the best renewable energy source for Pakistan. The key barriers that continue to promote energy poverty have been identified. Finally, the study suggests policy recommendation for public and private sectors to overcome energy related barriers to alleviate energy poverty in rural areas by utilizing maximum solar energy.

45 citations


Journal ArticleDOI
TL;DR: In this article , a standalone microgrid is planned to integrate solar, wind turbine, diesel generator, and battery for the rural community of the hilly state of Uttarakhand (India).
Abstract: Microgrids are an effective means to provide power to urban and rural communities. Microgrid planning must anticipate both the system's economic feasibility and long-term stability. Due to existing challenging ambitions, limitations, and the uncertainty of renewable energy production, the planning of microgrids is a difficult task. In the present work, a standalone microgrid is planned to integrate solar, wind turbine, diesel generator, and battery for the rural community of the hilly state of Uttarakhand (India). The Feasibility and techno-economic analysis of a proposed microgrid is conducted. The microgrid's performance is investigated using differential evolution and other existing algorithms, particle swarm optimization, and genetic algorithm to ascertain the cheapest option to energize the area. The sizing of components and sensitivity analysis of energy cost with changes in various parameters of the energy system is investigated. The optimization results suggest that the energy cost is $0.16/kWh, with a renewable fraction of 92% and a net present cost of $ 41,078. The obtained results indicated that a renewable-based energy system provides a more effective solution for the electrification of the rural population.

24 citations


Journal ArticleDOI
TL;DR: In this paper , an exclusive literature review for application of decentralized energy system for development of rural microgids is presented, in terms of governing principle, installed capacity, performance parameters, operating efficiency, and GHG emissions for both renewable and non-renewable energy Distributed Energy Systems (DES) technologies.

22 citations


Journal ArticleDOI
TL;DR: In this paper , a comprehensive review delivers enhanced hybrid electrification in rural areas using renewable energy sources like hydro, wind, biogas, and biomass, and also highlights sustainable and reliable hybrid renewable power generation system operation.

18 citations


Journal ArticleDOI
01 Feb 2022-Energy
TL;DR: In this paper , a case study for powering energy poor remote rural communities of Eastern India with locally available solar, biomass, diesel energy resources using Hybrid Optimization Model for Electric Renewables tool to identify the optimized system architecture.

18 citations


Journal ArticleDOI
TL;DR: In this article , the authors present an overview of optimization-based solution methodologies developed or applied for rural electrification, including optimal system configuration and unit sizing, optimal power dispatch strategy, optimal technology choice, and optimal network design.
Abstract: In order to provide “affordable, reliable, sustainable and modern energy for all” by 2030 under Sustainable Development Goal 7 (SDG7), rural electrification needs significant progress as the majority of people without access to electricity reside in rural areas. Optimization methods can play a critical role in this progress, providing an analytical framework to achieve a variety of economic, social, and environmental objectives subject to budget, resources, local demographics and other constraints. This review paper presents the first overview of optimization-based solution methodologies developed or applied for rural electrification. Based on our review, we first propose four archetype problems for rural electrification, namely (i) optimal system configuration and unit sizing, (ii) optimal power dispatch strategy, (iii) optimal technology choice, and (iv) optimal network design. We discuss each problem type, and provide a systematic classification based on the problem objective, proposed solution methodology, components, scale, region as well as their relationship to the different SDG7 components. We reveal research gaps and open questions for future studies for energy researchers and aim to draw the attention of the optimization community to the challenging and unique problems that need urgent attention in this critical area.

15 citations


Journal ArticleDOI
01 Sep 2022-Energies
TL;DR: In this paper , the authors used non-dominated sorting genetic algorithm (NSGA)-II and hybrid optimization of multiple energy resources (HOMER) Pro Software to reduce the net present cost (NPC), cost of energy (COE), and CO2 emissions of proposed power system.
Abstract: The absence of electricity is among the gravest problems preventing a nation’s development. Hybrid renewable energy systems (HRES) play a vital role to reducing this issue. The major goal of this study is to use the non-dominated sorting genetic algorithm (NSGA)-II and hybrid optimization of multiple energy resources (HOMER) Pro Software to reduce the net present cost (NPC), cost of energy (COE), and CO2 emissions of proposed power system. Five cases have been considered to understand the optimal HRES system for Kutubdia Island in Bangladesh and analyzed the technical viability and economic potential of this system. To demonstrate the efficacy of the suggested strategy, the best case outcomes from the two approaches are compared. The study’s optimal solution is also subjected to a sensitivity analysis to take into account fluctuations in the annual wind speed, solar radiation, and fuel costs. According to the data, the optimized PV/Wind/Battery/DG system (USD 711,943) has a lower NPC than the other cases. The NPC obtained by the NSGA-II technique is 2.69% lower than that of the HOMER-based system.

12 citations


Journal ArticleDOI
TL;DR: In this paper , the feasibility and flexibility of hybrid renewable energy systems are demonstrated under both off-grid and on-grid modes for rural electrification, where a case study of a village in West China is presented.

12 citations


Journal ArticleDOI
TL;DR: Li et al. as discussed by the authors analyzed the environmental impacts of poor residents' domestic energy consumption using an Ecological Footprint (EF) model and a Hierarchical Linear Model (HLM) model.

12 citations


Journal ArticleDOI
TL;DR: A review of some laboratories and test systems of microgrids in Latin America is presented in this paper , where a brief description of the general information of each microgrid and its main characteristics and components are presented.
Abstract: In recent years, microgrids have gained attention as a technological alternative to face the energy transition and universal sustainable electrification challenges. Its versatility to operate in grid-connected or isolated mode allows adapting the microgrid concept to several urban and rural applications. This has motivated industry and academia to develop experimental projects, prototypes, and application pilots worldwide. This paper presents a review of some laboratories and test systems of microgrids in Latin America. A brief description of the general information of each microgrid and its main characteristics and components are presented. Also, a discussion of the main advances in distributed generation in Latin America is included

11 citations


Journal ArticleDOI
TL;DR: In this paper , a solar PV/biogas/battery hybrid energy system was proposed to provide electricity for Ghana's remote communities, which achieved a cost-effective levelized cost of electricity (LCOE) and mitigate greenhouse gas emissions.
Abstract: Abstract Globally, reliable access to electricity improves people’s well-being, provides quality education, and promotes good health. Greenhouse gas emissions associated with fossil fuel combustion have incited an intense interest in low-carbon technologies for power generation. This study analyses the prospect of utilising a solar PV/biogas/battery hybrid energy system to provide electricity for Ghana’s remote communities. The study goal is to utilise locally available renewable energy resources to achieve a cost-effective levelized cost of electricity (LCOE) and mitigate greenhouse gas emissions. Hybrid Optimisation of Multiple Energy Resources (HOMER) software was employed to model and analyse the hybrid energy system’s technical, economic, and environmental aspects. The findings indicate that PV/biogas/battery system perform better than PV/diesel/battery and diesel-only systems in terms of cost and emissions reductions. Also, the LCOE generated from the PV/biogas/battery system is around 0.256 $/kWh. However, this LCOE is only about 64% higher than the LCOE for Ghana’s household residents. The sensitivity test indicates that the PV/biogas/battery system is sensitive to discount rates and capital subsidies, making it attractive for future development. This attests that Ghanaian rural communities without electricity access and with substantial biomass potential are likely to be electrified when given the necessary attention. Moreover, this project could be a viable alternative to rural electrification in Ghana with proper investment support.

Journal ArticleDOI
Cong Luo1
TL;DR: In this article , the feasibility of using combined photovoltaic (PV)/diesel/battery systems to power a remote rural school in southern Ethiopia was examined using the hybrid optimization model for electric renewable energy (HOMER) analytic tool.
Abstract: To provide rural communities with low-cost electricity, innovative off-grid renewable energy producing techniques have emerged. The International Energy Agency estimates that around 45% of Ethiopia’s total population have access to electricity. Nearly 85% of Ethiopia’s urban population has access to public electricity, but this figure is only 29% for the rural population. This study examines the feasibility of using combined photovoltaic (PV)/diesel/battery systems to power a remote rural school in southern Ethiopia. The performance of various hybrid systems was assessed using techno-economic and environmental analyses, and the optimal solution was chosen using the Hybrid Optimization Model for Electric Renewable (HOMER) analytic tool. The evaluation criteria include net present cost (NPC), cost of energy (COE) and emissions. The results indicate that PV/DG/battery hybrid energy system (HES) with a 7.5 kW PV, 7.3 kW DG, 6.60 kW converter, and 11 units of batteries (case I) is the most feasible, optimized, cost-effective and environmentally friendly system among the systems considered. This system has a Net Present Cost (NPC) of $32,019 and a Cost of Energy (COE) of $0.254/kWh, as computed using current equipment values. The optimized system is also environmentally benign, emitting 793 kg of carbon dioxide per year, about 91% less than the PV/diesel combination (worst case IV). Furthermore, sensitivity analysis was performed to examine the impacts of altering factors such as solar radiation, fuel price, and battery minimum state of charge (SOCmin) on system cost and performance. We believe that the information given in this paper will shed light on the current state and future prospects for renewable energy deployment in Ethiopia, and also show that, if policymakers create the necessary investment environment, such projects can be a viable alternative to rural electrification.

Journal ArticleDOI
TL;DR: In this article , a model-predictive control (MPC) based control system is introduced to optimally manage storage devices and coordinate load shedding actions in a DC microgrid.

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the relationship between government capital spending and five distinct energy poverty proxies, applying the Bayer-Hanck cointegration system and the auto-regressive distributed lag (ARDL) bound test.
Abstract: Purpose Given the ever-growing fiscal commitments of Nigeria and her chequered history of electricity generation and distribution, the fortunes of the energy sector in the country have been affected by the prevalence of energy poverty. Government policies such as public capital expenditure (PCE) present a crucial option for reducing energy poverty in Nigeria, providing the purpose of this study. Design/methodology/approach To investigate the relationship between government capital spending and five distinct energy poverty proxies, this research applies the Bayer–Hanck cointegration system and the auto-regressive distributed lag (ARDL) bound test. Findings The findings indicate that public capital spending in Nigeria worsens energy poverty by reducing access to electricity, urban electrification, renewable energy consumption and renewable electricity generation, with a positive but insignificant influence on rural electrification. Originality/value This inquiry presents a pioneering investigation of the nexus between PCE and energy poverty in Nigeria. Also, aside from the variables of energy poverty adopted by existing studies, this study incorporates renewable energy consumption and renewable electricity output with implications for energy poverty and sustainable development.

Journal ArticleDOI
Liang Wang1
TL;DR: In this paper , the authors used a dynamic panel System-Generalized Method of Moments (Sys-GMM) estimator to analyze data collected on a panel of 36 African countries over 2000-2017.

Journal ArticleDOI
TL;DR: In this paper , an off-grid PV-hydrogen energy system is proposed to electrify rural households in Balochistan, Pakistan, which is designed, simulated, and optimized from a techno-economic perspective based on electric load profile, geographical locations, and meteorological data.

Journal ArticleDOI
TL;DR: In this article , the authors carried out an in-dept overview of GIS-based rural electrification planning models with a trace to their historical evolutions and concluded that OnSSET has better capabilities than the other models.
Abstract: This study carries out an in-dept overview of GIS-based rural electrification planning models with a trace to their historical evolutions. The study focuses on web-based and desktop-based models that have been developed and used extensively in rural electrification planning in recent years. Specifically, four of such models are considered: SOLARGIS, Network Planner, the Reference Electrification Model (REM), and OpeN Source Spatial Electrification Tool (OnSSET). We compare the performance of these models and conclude that OnSSET has better capabilities than the other models. Specifically, we find OnSSET very useful because it is open source. We demonstrate the application of OnSSET in a state in Nigeria, i.e. Kaduna State. The state is selected because of data availability. The result of the study shows that mini-grid solar PV is the cost-effective technology option for most unelectrified communities, followed by Standalone PV. Furthermore, the cost of achieving universal electricity access in the state by 2030 is estimated at US$505.08million while an additional generation capacity of 252MW will be required to achieve universal electricity coverage by 2030. The study concludes that the financial requirement seems to be beyond the capacity of Kaduna State given the prevailing economic realities in Nigeria and recommends that pro-poor public-private partnership strategies be considered for electrification projects in the state.

Journal ArticleDOI
TL;DR: In this paper , the authors trace the evolution of India's off-grid solar sector from 1980 through 2020 and apply the Multi-Level Perspective (MLP) to highlight interactions across three levels of actors, with additional attention to how their actions were shaped by evolving policy narratives.
Abstract: • Strong linkages between niche, regime and landscape are observed across four decades in India. • Institutional innovations were critical in facilitating early developments of off-grid solar. • Actors influence and are influenced by the prevailing narratives during each phase. • While initial developments were pushed by governments, more recent efforts are coming from private actors including civil society and policy think tanks. • Reimagination of off-grid solar towards ‘ beyond lighting ’ is taking place in wake of total electrification in India. Decentralized renewables are critical for rural electrification in many countries in the Global South. As a case study of the development of decentralized renewables, we trace the evolution of India's off-grid solar sector from 1980 through 2020. We apply the Multi-Level Perspective (MLP) to highlight interactions across three levels of actors, with additional attention to how their actions were shaped by evolving policy narratives. We find that the national government initiated the development of off-grid solar in the early 1980s due to concerns about energy security and rural poverty. The sector was then supported by international agencies focused on sustainable development, and more recently non-state players and private enterprise emerged as the innovators. This case study makes two more general contributions to the MLP literature. Empirically, it shows how regime actors can deliberately create niches. Theoretically, it shows how narrative analysis can be integrated into the MLP to shed light on the dynamics of energy transitions.

Journal ArticleDOI
TL;DR: In this paper, a techno-economic feasibility analysis of hybrid renewable energy systems for four household categories in rural areas of Chad was studied based on the multi-criteria assessment technique and the results have shown that the optimum combination of the hybrid system was the photovoltaic/battery system with a Net Present Cost (NPC) of US $ 328,146 and it was found at Etena village.
Abstract: In this study, a techno-economic feasibility analysis of hybrid renewable energy systems for four household categories in rural areas of Chad was studied based on the multi-criteria assessment technique. The problem of this study is to know the best optimal solution in the technical and economic feasibility study of the decentralized mini-grids for the rural electrification of isolated villages in Chad. The main objective of the work is to assess technically, economically and environmentally the feasibility of six scenarios of hybrid systems in five isolated sites in Chad. The performance analysis involved six scenarios of possible hybrid solutions while achieving a supply-demand balance for sustainable electrification of the remote villages, using the HOMER software. The results have shown that the optimum combination of the hybrid system was the photovoltaic/battery system with a Net Present Cost (NPC) of US $ 328,146 and it was found at Etena village. The photovoltaic/Wind/Diesel/Battery hybrid configuration was the least optimum system and it has appeared in Mandelia village. In terms of energy cost, the lowest Levelized Cost of Energy (LCOE) was estimated at US $ 0.236/kWh in a photovoltaic/Wind/Battery configuration at Koundoul site and the highest costs US $ 0.363/kWh in the photovoltaic/Battery configuration at the Linia site. It is established that hybrid solutions can be developed to make electricity available and accessible to the population of the remote rural areas in Chad. However, it is imperative that the local government must subsidize the diesel price to promote the adaptation of the abundant renewable solutions.

Journal ArticleDOI
14 Sep 2022-Energies
TL;DR: In this paper , the authors presented a DC microgrid with decentralized production and storage suitable for rural electrification, i.e., the progressive building of decentralized and decarbonized electric infrastructure in a bottom-up manner.
Abstract: The rural electrification of Sub-Saharan Africa and South-East Asia is crucial to end the energy poverty in which around 1 billion people are trapped. Swarm electrification, i.e., the progressive building of decentralized and decarbonized electric infrastructure in a bottom-up manner, tackles rural electrification challenges by quickly providing modern and reliable electricity services to unelectrified communities while fostering local socio-economic development. This paper follows the technological approach of this electrification model and presents the development of a DC microgrid with decentralized production and storage suitable for rural electrification. This DC microgrid aims at interconnecting nanogrids, small collective autonomous power units composed of a solar panel and a lead–acid battery for 4 to 6 households, to increase the electrical services brought to the community and enhance the economic sustainability of this rural electrification model. The design of the proposed microgrid as well as its control algorithm are thoroughly addressed and tested from software simulations and experimental testing to field deployment in Madagascar. Extensive software, experimental and field-tests results are illustrated, and the microgrid design feedback is given. This paper overall validates the proper operation of the proposed microgrid, confirming the technical feasibility of the swarm electrification approach.

Journal ArticleDOI
01 Jan 2022
TL;DR: This work develops and applies an artificial intelligence search method to efficiently route inter-village power connections in the common rural electrification situation where substantial topological variations exist and results compare favorably with optimal A* results, at significantly reduced computational effort.
Abstract: United Nations’ 7th Sustainable Development Goal envisions the availability of modern energy for everyone by 2030. While the progress has been satisfactory in the last few years, further rural electrification is increasingly challenging. The current mainstream approach of electrifying villages individually is becoming cost-ineffective due to uncertainties in both resource availability and energy demand for small, difficult-to-reach, residences. A networked rural electrification model, i.e. a cost-optimized network connecting villages and generation facilities, could improve resources utilization, reliability and flexibility. However, determining optimal paths with common search algorithms is extremely inefficient due to complex topographic features of rural areas. This work develops and applies an artificial intelligence search method to efficiently route inter-village power connections in the common rural electrification situation where substantial topological variations exist. The method is evolved from the canonical A* algorithm. Results compare favorably with optimal A* results, at significantly reduced computational effort. Furthermore, users can adaptively trade-off between computation speed and optimality and hence quickly evaluate sites and configurations at reasonable accuracy, which is impossible with classical methods.

Journal ArticleDOI
TL;DR: The quasi-dynamic O&M plan for rural electrification of the Pantanal of the Mato Grosso do Sul region in Brazil is presented, which considers not only the PES requirements but also the environmental constraints, given by the consumer locations, the flood period variation, and the different logistical strategies for off-road assessment.

Journal ArticleDOI
TL;DR: In this article , the potential impacts of the Nigerian Rural Electrification Fund (this article-1) on the development of rural communities and specifically assesses the policy's differential impacts on men and women's employment and income.


Journal ArticleDOI
TL;DR: In this article , the authors raised the electricity usage issue between insufficiency and efficiency by investigating factors associated with electricity consumption inequality using quantile regression in urban and rural areas, and they revealed that most Indonesian households still encountered energy inequality.

Journal ArticleDOI
TL;DR: In this paper , the authors examine the determinants of solar PV adoption in rural areas of Pakistan and find that age, education, children in school, income level, access to credit, gender (female), and price of a solar PV system are the factors significantly affecting the solar PV systems adoption.
Abstract: The electricity crisis in Pakistan has been triggering grid power outages (load shedding) for many decades, which has not only affected the commercial and industrial sectors but also the domestic sector, specifically the livelihood of rural areas of the country. However, the extant literature advocates that renewable energy technologies (RETs), such as solar photovoltaic (PV) can be the remedy. Given the abundant availability of solar energy in Pakistan that can be converted into electrical energy using a solar PV system, this study examines the determinants of solar PV adoption in rural areas of Pakistan. Our preliminary investigations—using government/official publications—indicate that despite the huge potential of solar energy in Pakistan, the usage of solar PV systems at the household level in rural areas is still untapped, which makes this research agenda more appealing and provocative. In doing so, this study first conducts surveys, face-to-face comprehensive interviews, and questionnaires in four different districts of Pakistan and then implements a stepwise two-stage novel approach on a sample of 1,140 selected rural households. The first stage focuses on the determinants of solar PV system adoption, whereas the second stage focuses on the determinants of the type of solar PV system adopted. Using logistic regression, this study finds that age, education, children in school, income level, access to credit, gender (female), and price of a solar PV system are the factors significantly affecting the solar PV system adoption. In the second stage, we use a multivariate probit model and find that among these significant factors, the former five are significantly positive for the uptake of solar home-system, whereas the latter two are significant for both solar shed-lighting and solar panel-kit systems. In addition to these factors, landholding and access-to-road are significant for solar home systems, whereas household size, distance-to-market, and access-to-grid-electricity are significant for both solar shed-lighting and solar panel-kit systems. Since burning fossil fuels and solid biomass fuels for domestic energy needs are common in rural areas globally and cause carbon emissions and several severe health issues, the findings of this study are useful in many ways. In specific, we contribute to the literature examining the determinants of RETs in rural communities in developing countries.

Journal ArticleDOI
TL;DR: In this article , the authors propose a tool for the design of stand-alone rural electrification systems based on photovoltaic technologies, including both microgrid or individual supply configurations.
Abstract: Access to electricity for the rural and indigenous population of Ecuador’s Amazon Region (RAE) is considered a critical issue by the national authorities. The RAE is an isolated zone with communities scattered throughout the rainforest, where the expansion of the national grid is not a viable option. Therefore, autonomous electrification systems based on solar energy constitute an important solution, allowing the development of indigenous populations. This work proposes a tool for the design of stand-alone rural electrification systems based on photovoltaic technologies, including both microgrid or individual supply configurations. This tool is formulated as a Mixed Integer Linear Programming model including economic, technical and social aspects. This approach is used to design electrification systems (equipment location and sizing, microgrid configurations) in three real communities of the RAE. The results highlight the benefits of the developed tool and provide guidelines regarding RAE’s electrification.

Journal ArticleDOI
TL;DR: In this paper , a sustainable socio-techno-economic-environmental political (STEEP) microgrid design framework utilizing locally accessible energy sources for rural electrification for developing/least-developing countries is proposed.
Abstract: This work proposes a sustainable socio-techno-economic-environmental-political (STEEP) microgrid design framework utilizing locally accessible energy sources for rural electrification for developing/least-developing countries. In the proposed STEEP microgrid framework, four layers of...

Book ChapterDOI
01 Jan 2022
TL;DR: In this article , the authors proposed a microgrid-based distributed generation (DG) system to supply power to rural residences with low cost and high efficiency by avoiding transmission costs and losses.
Abstract: In certain areas, more villages in rural locations need electrification. In areas where fuel is expensive to transport and the extension of electrical transmission lines is costly, the rural electrification plan has become a critical issue. The extension of the main electrical power network to these communities is not workable, owing to high capital costs and increased power losses. Isolated power networks based on sustainability, such as rural microgrids, may be a viable alternative option. Concerns about global warming, climate change, and pollution in the atmosphere have led to the development of forms of environmentally sustainable power generation. In the future the use of renewable energy will help in the reduction of carbon and air pollution and improve the quality of life in remote areas. Considering the environmental challenges related to conventional electricity production (mainly emission of CO 2 ), services and consumers strongly prefer the use of pollution-free green energy sources, such as solar, wind, and fuel cells. A vast number of individual producers would use solar panels or wind turbines and other generation technologies to power the electricity grid. As a result, green energy options must be used to satisfy the high energy demand and minimize environmental pollution in rural locations. Installation of distributed generation (DG) by large number of consumers satisfies the majority of their energy needs, and DG is increasing in popularity in the electricity market. A microgrid (MG) or hybrid system that combines diverse energy conversion technologies is commonly used to simplify the problems of renewable resources and their interconnected networks and to enhance their effectiveness and safety. By adopting IEEE Standard 2030.8–2018, which is used for the testing of MG controllers, and IEEE Standard 2030.7–2017, the specification of MG controllers, a stand-alone grid can be designed and used to supply power to rural residences with low cost and high efficiency by avoiding transmission costs and losses.

Book ChapterDOI
01 Jan 2022
TL;DR: In this paper , the projection of residential microgrids is discussed and the application of HOMER software as powerful software for optimal residential micro-grid planning is presented, where the residential microgrid's optimal planning procedure with required input data, objective functions, and design constraints are explained.
Abstract: Microgrids are a valuable option for residential electrification in rural areas. Diversity of electricity generation technologies, application of renewable energy resources, and advancements in energy storage technologies have granted more flexibility to integrate microgrids in rural areas. An appropriate microgrid with a suitable generation storage system can be designed on the basis of the geographical specifications of the rural area and the availability of the system components in the region. However, owing to the high cost of the new technologies, the optimal planning of residential microgrids has attracted more attention. Optimal planning or design of microgrids is accomplished to achieve the minimum price with the highest reliability and lowest environmental emission. In this chapter the projection of residential microgrids is discussed. The system structure and relevant components are introduced. The residential microgrid’s optimal planning procedure with required input data, objective functions, and design constraints are explained. The application of HOMER software as powerful software for optimal residential microgrids is presented.