Economic Feasibility of Stand-alone Power Systems for Existing Distribution Networks in Rural Areas

Renewable-based distributed generation is becoming an increasingly viable option for network service providers (NSPs) to supply electricity to customers. The primary objective of this paper is to determine the feasibility of stand-alone power systems (SPSs) in the present day environment for existing power distribution networks in rural areas. The feasibility analysis is performed with regards to the total net present cost over a 50 year investment period. A graph traversal approach has been developed to compare the net present costs of supplying electricity to customers through the existing distribution network and through stand-alone systems. The approach is applied to a real rural distribution network in the South-West of Western Australia. Results indicate that the use of SPSs presents a more cost effective solution to the traditional network supply for the rural distribution network studied, and that further investigation into the viability of SPSs for rural areas is warranted.