ACTA TECHNICA CORVINIENSIS – Bulletin of Engineering Tome XIV [2021] | Fascicule 2 [April – June] 95 | F a s c i c u l e 2 1. Archan BHANJA, 1. Anil KUMAR, 2. Anshuman GUPTA TECHNO-ECONOMIC CHALLENGES IN IMPLEMENTATION OF SOLAR EQUIPMENT BASED ON A STAND-ALONE MICROGRID IN HILLY TERRAINS OF RURAL INDIA 1. Power Management Department, University of Petroleum & Energy Studies, Uttarakhand 248007, INDIA 2. Economics Department, University of Petroleum & Energy Studies, Uttarakhand 248007, INDIA Abstract: Rural electrification is an essential requirement for improving the lives of people and improving their image among the international community. To install photovoltaic (PV) panels in isolated regions according to the government plans and regulations, solar-based microgrids are the best solution. However, there are several components required for installing and operating the microgrid, including its location of the microgrid. The present paper made an effort to explore the challenges encountered in installing solar-based microgrids, especially in hilly terrains of rural India. The review highlighted the varied technical difficulties including the stability, reliability, power imbalance, control and operation. Besides, the discussion on the stand-alone models of a microgrid along with its advantages, also been highlighted. Further, government initiatives like subsidies and funding for rural electrification also been presented. As a case study, two microgrids in India, one at Ladakh and one at west Bengal are presented. These case studies bring out the challenges faced during the rural electrification, and strategies adopted to overcome are given for the future scope. Keywords: rural electrification, solar power, microgrid, hilly terrain, Indian solar power scenario, stand-alone model of microgrid INTRODUCTION India has a large population and with third-largest electricity producer in the world. Nonetheless, about 300 million people remain un-electrified especially in the rural regions (Ritchie & Roser. 2019). On the other hand, there is an exorbitant gap between electricity production and the demand for electricity. The use of coal and fossil fuels for electric energy is not only depleting them but also keeps a challenge on environmental concern. Therefore, the use of renewable energy is the only solution to make pollution free(The World Bank. 2019). Although there are several electric energy producing sources, the heart of rural electrification is having the sustainable, non-pollutant environment-friendly and reliable energy. One such prominent and viable sources, especially in the tropical region is the solar energy (Verma et al. 2014). Solar energy, which is produced by using the techniques of concentrated solar power (CSP) or solar photovoltaic (SPV). The solar energy has the highest capacity to provide electricity, but it has not been utilized to the highest potential. Solar energy-based microgrids are found to be a promising solution to terrain electrification particularly in rural, remote villages and for poor communities. In remote villages of India, there are many constraints in electrifying as these isolated regions are presented with deep forest, deserts, islands, hills and therefore there is a lack of clear approachability and less populated. Besides, laying live conductors in such terrains is challenging due to their topography and distance from the grid (Diesendorf & Elliston. 2018). Providing electricity, with a new grid structure, or through the expansion of existing grid is highly expensive, especially considering the quantity of consumption. Most of the loads would be used for lighting; hence the power demand would be low and transmitting such low power over long distances from the grid will incur high losses for power transaction and distribution. The return on investment would become non-existent and might be negative in most cases, and hence would not be affordable (Sastry. 2003). Rather than expanding the central grid, using a stand-alone model of microgrid would be a promising solution for isolated hilly terrains (Hubble & Ustun. 2018). This paves the way for distributed generation or for the concept of a microgrid which is suitable for both stand-alone and interactive structures (Mothilal Bhagavathy & Pillai. 2018). Although the government has initiated several rural electrification programs at village levels (e.g., Deendayal Upadhyay Gram Jyoti Yojana (DDUGJY), the Rajiv Gandhi Grameen Vidyutikaran Yojana) [9], but these programs have largely created impact [4] and still, the aspiration for rural electrification is self- limited. The paper is structured as follows: First section of the paper overviews the rural electrification in India while section 2 details about the microgrid and distributed generation, and gives a historical overview, solar grid working, and the key challenges of implementing microgrid. The next section describes the different types of site analysis, design analysis, and economic analysis performed during the microgrid installation. Two case studies are discussed in terms of challenges faced during the rural electrification, and strategies adopted to overcome. Finally, the summary and recommendations were given for future scope.