Re-evaluating Rural Electrification Options for the Energy Transition

Many rural households still lack electricity. Although off grid modular renewable energy systems like solar PV are popular electrification options, there's a misconception that they are better than grid extensions. This study introduces a fresh perspective on the single wire earth return (SWER) design as a cost-effective rural electrification approach, comparing it to Hybrid Solar PV-Battery-LPG generator systems. Findings reveal that, for electrification through grid extension distances under 30 km, the SWER system outperforms off-grid alternatives in terms of financial key performance ratios. In fact, the hybrid system considered the most viable off-grid solution by several studies, incurs 4.8 times the capital expenditure of SWER and 1.6 times the levelized cost of energy of SWER. The hybrid system entails a connection cost of $611 per household, whereas SWER requires $128 per household. In the literature, the lowest connection cost from SWER was $400 per house in 2015, or $516 currently when adjusted for inflation. Given the urgency of the energy transition and the challenges of grid upgrade, SWER can be worth reevaluating for applications such as rural electrification, rural transport electrification, and mini-grids formation.