Feasibility assessment of Anchor-Business-Community model for off-grid rural electrification in India

The concept of “micro-grids” as self-sustained power systems is driven largely by business models, which have to be developed by considering the perspectives of all the stakeholders. This study tests the feasibility of the Anchor-Business-Community model of off-grid electrification in a cluster of two Hamlets in Uttar Pradesh, from the perspective of a Renewable Energy Service Company. Telecom towers, Flour Mills and rural communities have been considered as the Anchor, Business and community customers respectively. Primary surveys have been carried out to assess socio-economic characteristics, renewable energy resource availability and energy demand. Cost savings has been assumed to be the primary incentive for the customers to switch to clean energy. Cash flow analysis has been done to estimate the level of profitability of the project with and without the current level of subsidy. Solar Photovoltaic systems, Biomass gasification systems and Solar-Biomass hybrid systems have been modelled using HOMER. The model for Solar PV system with subsidy was found to be the most robust out of all three models in the scenario analysis. Solar-Biomass hybrid systems and Biomass Standalone systems are found to have the potential to offer a healthy level of returns under the best case and most likely scenarios. •Models for Solar, Biomass and Solar-Biomass hybrid micro-grids have been prepared.•Incentives for the consumers to switch to renewable energy have been examined.•Solar PV model with subsidy was found to be the most robust out of all three models.