Towards sustainable and affordable energy for isolated communities: A technical and economic comparative assessment of grid and solar PV supply for Kyiriboja, Ghana

Isolated communities are constrained with electricity access due to limited infrastructure, high grid extension costs, and a lack of energy security protections for vulnerable communities. Meanwhile, electricity access for all is important for the socio-economic development of the human race. Therefore, this study aims to present a techno-economic assessment of electricity supply options to off-grid communities through a case study (Kyiriboja). The study technically assessed the feasibility and appraised the two investment (supply) options (3 km grid extension and 108 kWp solar PV microgrid) using the net present value (NPV), the internal rate of return (IRR), and the profitability index (PI). The results show an NPV of GHS 906,988.73 ($77,520.40) for the grid extension option and an NPV of GHS 698,527.67 ($ 59,703.22) for the solar PV system option. The study obtained IRR, DPP, and PI values of 21 %, 8 years, and 1.7, respectively, for the grid extension option, while the solar PV option had 18 %, 9 years, and 1.4 for the IRR, DPP, and PI, respectively. The resulting annual energy production and CO₂ savings from the study for the solar PV option are 213,151.8 kWh and 181,179 kg respectively, while a savings of 4,529,476 kg can be achieved in the project's lifetime. The economic evaluation of the proposed solar PV microgrid with the application of carbon credit resulted higher profitability of solar PV microgrid than the grid extension. The study with carbon credit analysis recorded an NPV of GHS 1,077,309.77 ($92,077.76), IRR of 24 %, PI of 1.7, and DPP of 7 years.