Comparative cost analysis of grid-connected thermal electricity and off-grid solar energy in Rural Rajasthan: A case study

Energy is a fundamental requirement for the growth and development of the economy of a country. The supply of electricity to remote areas through conventional methods has become unattractive and, in some cases, rendered nearly impossible by the high generation cost, expensive centralized management system, especially for small loads, and high transmission and distribution losses. According to the findings of majority of researchers [1], socio-economic conditions of the rural region of a country can be enhanced by successful rural electrification. It has been noted that, for remote areas, the cost of grid extension is increasing remarkably while the same for solar photovoltaic PV systems is approaching global competitiveness comparatively [2]. At the same time, it is true to say that electrification of remote rural areas is comparatively more capital intensive than that of urban areas. Few of the primary aspects that contribute to high cost of rural electrification are lower load demand, lower rates of capacity utilization, high cost of power utility lines, and high maintenance cost. While conducting the present research it was observed that many of the remote areas possess failed extended grid connections. To address this issue, a comparative cost analysis of electricity grid extension and off-grid solar PV systems was conducted to access the viability of the two systems for Khanpuriya village, Kota district, Rajasthan, in order to adopt the most feasible method to provide electricity to such remotely located areas. This study comprises of the case study conducted using life cycle cost analysis and economic distance limit.