According to latest renewable report by IEA, there has been a tremendous growth in renewable power around the world led by China, United States and India. India’s renewable growth during 2016-2022 is expected to be higher than European Union, if the present trend continues. The major contributors in India’s recent capacity growth are solar and wind, possibly due to sharp lowering in price in case of both the technologies resulting from auction.
Recently India has also achieved 100% village electrification. In India, a village is declared electrified, if electricity reaches to at least ten households in the village. According to the latest data, still millions of households remain without electricity, especially those in remote corners of the country. Also, many electrified areas do not receive reliable or continuous supply of power due to grid and other issues
Off grid and micro grid applications are coming up in a big way to electrify households in these remote areas in many developing countries in the world. Mini and micro grid with distributed renewable generation are also featuring to provide climate friendly, reliable power to many.
Off-grid systems have a (semi)-autonomous capability to satisfy electricity demand through local power generation. Basically these systems are not using or depending on electricity provided through main grids or conventional grid and generated by main power infrastructure (IRENA, 2017, p.5).
Microgrid is a power distribution network comprising multiple electric loads and distributed energy resources, it has ability to operate independently (off grid) or in conjunction with a conventional grid.
This small self-sufficient system would allow maximum extraction of the renewable power by coordinating control between renewable and the fossil fuel based generators.
IRENA report shows that worldwide off grid renewable energy user is growing.
India with its renewable potential, target and extent of implementation so far, is now eying off grid renewable solution to achieve complete electrification in a sustainable manner.
Ministry of New and Renewable Energy, India, has come up with the “Draft National Policy on RE based Mini/Micro grids” in June 2016, with the following objectives:
- Simplify the project development procedures for ESCOs.
- Provide operational framework to operate where the grid does not exist, or already exists (the
- Distribution Company grid).
- Access to central financial assistance and other incentives.
- Encourage innovative Minigrid business models to cater to rural needs.
The Policy was drafted in 2016 (MNRE, 2016) and is presently under consideration by the national government.
Technologies like Solar Home System (SHS) is fast developing bringing down the cost of off grid technologies. SHS market is predicted to grow and bring electricity to more than 70 million people in Asia and Sub Saharan Africa by 2022.
Microgrid can have either solar or biomass, or even small hydro generator as a source.
Microgird with renewable generation source and off grid solutions like SHS provide reliable power and depending on the location, requirement, grid availability, and cost economy etc. either of the solution is adopted.
Although technology development for off grid power in recent time has been good, but suitable business model to attract investors to this potential market is yet to develop. In India, only few players are in it and the market largely stands on grant and subsidies. But, once the barriers are reduced, through policy implementation and large players enter the market, future of renewable with off grid is predicted to be very promising in developing and under developed countries.