A Review of Renewable Energy Mini-Grid Systems in the Non-Interconnected Rural Areas: A Case Study

Erdiwansyah, Mahidin, Muhammad Zaki, Asr Gani, Muhibbuddin, Jalaluddin


More than 100,000 people scattered in rural areas or outer islands are still using non-interconnected power generation systems such as thermal power. The ecological balance is reduced because the electricity costs are too high due to dependence on fossil fuels. However, the energy transition (ET) in island/rural areas is faster in terms of a low carbon economy because the potential for renewable energy is very large there. This presents a renewable mini hybrid grid system that can connect rural areas/outer islands. The research paper deals with a comparative analysis across remote island/rural areas based on the previous literature. The application of the business systems identified in this work is undertaken to encourage the introduction of renewable energy (RE) and promote HRE-MG utilization in island/rural areas. The targets for achieving advanced success of ET are specifically discussed in this work. The ET development can involve the government and the private sector to support the achievement of these targets. In addition, funding sources must be sought for certain areas as an alternative to assistance, and foreign investors are needed. Cooperation at the international and government levels must be established so that effective policies can support capacity building at the local level. The application of HRE-MG in island/rural areas is suitable for companies to invest in renewable energy services because the renewable technology costs and the value of tax incentives are lower in these areas.


Keywords: Hybrid Renewable Energy (HRE) System, Mini-grids (MG), Electricity Access, Rural areas, non-interconnected.

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