Examining the Role of Diesel Generators for Microgrid Bankability in India and Southeast Asia

Sammanfattning: Since the introduction of Edison’s lightbulb over one-hundred years ago, humanity has struggled to keep up with electrification for all. With global attention now aimed at sustainable energy production, the struggle becomes more complex by not only obliging energy access, but access to clean energy. The concept of microgrids has been promising for filling in the demand, but not quickly enough to meet global electrification targets due to lack of private investment in key areas. This study explores how one of the microgrid components, the diesel generator, affects financing for microgrid development. Data for the study was collected through the use of mixed methods and included documentation review, interviews, and microgrid simulations using HOMER Pro software. Information was analyzed across the data types by using triangulation. The research revealed that private financing for microgrids is perceived to have highest risk in the initial investment phase. HOMER analysis showed that within microgrid configurations, a diesel generator can lower the capital needed but this will be offset with higher operational costs and possibly penalties from environmental policy. The diesel generator also lacks providing added value to systems; value which often makes a project economically feasible. Although the diesel generator is not an ideal component in all configurations, it could serve as a catalyst to acquiring funding for microgrids with uneconomical capital costs or complexity. The anchor-business-community model for microgrids is suggested as a way to capitalize on existing gensets in large enterprises to create an affordable community microgrid. Energy policy must adapt to accommodate various microgrid configurations, especially how they will interact with the main grid. Improvements in policy, design, and financing mechanisms for microgrids will ultimately help in proliferating the technology to areas of critical importance.