International Journal of ChemTech Research CODEN( USA): IJCRGG ISSN : 0974-4290 Vol.5, No.2, pp 771-779, April-June 2013 ICGSEE-2013[14 th – 16 th March 2013] International Conference on Global Scenario in Environment and Energy Development Of A Cost-Optimized Hybrid Off-Grid Power System For A Model Site I n North-Eastern I ndia I nvolving Photovoltaic Arrays, Diesel Generators And Battery Storage Srimanta Ray 1 *, Ajoy Kumar Chakraborty 2 and Debika Debnath 3 1 Dept. of Chemical Engg., National Institute of Technology, Agartala, Jirania, Tripura, India. 2 Dept. of Electrical Engg, National Institute of Technology, Agartala, Jirania, Tripura, India. 3 Dept. of Electrical Engg, National Institute of Technology, Agartala, Tripura, India. *Corres.author: rays.nita@gmail.com Abstract: A model site in the north-eastern state of India is selected for economic analysis and optimization of an off-grid hybrid power system with an average electrical energy demand of 35.6 kW. Off-grid hybrid power systems are evaluated in different configurations of solar photovoltaic (PV), diesel generators (DG) and batteries (BAT) for minimization of cost of energy (CoE) and maximized renewable share. The cost analysis of hybrid power system is performed using Hybrid Optimization Model for Electric Renewables (HOMER) optimization software. The CoE is computed by varying PV, DG sizes and BAT cells; and the optimal system configuration is assessed. A comparison of cost analysis with simulated system architectures and literature is also presented in this study. Keyword: Batteries (BAT); Cost of Energy (CoE); Diesel Generators (DG); HOMER optimization; Off-grid hybrid power systems. 1. Introduction The access to electricity is closely linked with development and economic well-being of a nation and there is a tremendous increase in the demand for electricity globally. However, according to the International Energy Agency (IEA), about 1.4 billion people in the world do not have access to electricity 1-3 . In India, a considerable fraction of population of many north-eastern states is suffering from economic and developmental impediment due to lack of stable grid power or unavailability of grid power. Huge financial resources have been invested in India to extend the grid electricity in rural areas, but the reality is different 2,4,5 . As compared to other countries, in India about 20-40% of electricity is lost in the grid during transmission and distribution. Also, the extension of grid to remote villages costs around one rupee per unit per kilometer 6 . Alternatively, hybrid power system can be considered an option for the remote rural localities in where the grid cannot be available. Hybrid power