Economic and Environmental Impacts of Installing Micro-Grid in a Rural Area

S. Youli, K. Nagasaka (Japan), N. Estoperez (Phillipines)


Micro-Grid, Economic and Environment Impact Assessment


Recently, the issue of Micro-Grid has been considered as a challenge among power utilities as well as communities in many countries around the world. Pilot projects have been promoted and some practical results have also been obtained. As an environment problem of the global warming, clean energy like wind and solar power can be considered as viable options for future electricity generation. Besides being emission-free, the energy coming from wind and solar are also available at no cost. In the past, these renewable energies are no included in Micro Grids. Renewable energy resource forming a Micro-Grid is not only provides the cheaper electricity for the rural area; it also creates the potential income for the end-user in that area. This paper intends to assess economic and environmental impacts of Micro Grid which forming by renewable energy micro-wind power plant (MWPP) and micro-hydro power plant (MHPP) in a rural area. Yardstick of economic merit such as: Net Present Value (NPV), Benefit-Cost Ratio (BCR) and Payback Period (PBP) will be dealt on this study.

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