DRE Modelling Tool

A tool to help analyse which out of DRE (Decentralised Renewable Energy) and Grid is the more cost-efficient and reliable means of supply of electricity for specific case scenarios!

The simulation model can generate ‘what-if’ scenarios of different systems of energy supply (grid and 100% DRE), along with the cost and reliability implications. The model can compare different systems of energy supply in terms of their relative costs and reliability under the conditions described above.  


Developed by
Kabir Sharma, Mihir Mathur, DESTA Research LLP 

Supported by
SELCO Foundation




Background >
According to a recent report by International Institute for Environment and Development (IIED), an energy delivery model is the combination of the technology, finance, management activities, policy support, legal arrangements and relationship types required to supply energy to a group of people or end users. The design of such models must consider the broader environment in which the service is to be provided, or ‘context for intervention’, which includes the ‘enabling environment’, i.e. the institutional structures and public policies, the existing transport and communications infrastructure, the local capacities and the wider socio-cultural context in which the end users live. The DRE Simulation Modelling was undertaken in collaboration with SELCO Foundation’s knowledge partners, DESTA Research LLP. The simulation was developed to model the economics of Decentralized Renewable Energy (DRE) vs. Electricity from a Grid, to understand the economic efficiency of it from the demand lens. The model is built to run scenarios for short- and long-term time horizons and testing the sensitivity of different energy technology parameters related to solar PV as well as battery storage, and case-specific parameters such as grid reliability, capacity utilization, electricity demand as well as economic parameters pertaining to costs. This helps to compare the energy delivery options on a suite of economic and efficiency-related parameters over time.





Benefits >

Why use DRE Modelling tool

1

Weigh options

Help users identify the cheaper option between DRE & Grid for a specific context
2

Map costs over time

Understand how the costs pan out over time for short/long-term durations, for different case scenarios
3

Determine cross-over point

Estimate the no. of years it would take for the switch from Grid to DRE to happen
4

Assess the influence of different factors

Evaluate the sensitivity of different parameters on the costs for both options

At the grassroots level, help local healthcare facilities take informed decisions about energy supply for the facility itself
At the macro level, help state-level officials take informed decisions regarding energy supply for healthcare facilities at a regional level
Help entrepreneurs running a general store make informed decisions regarding energy supply required to run various appliances




How it works

Below the overall model logic for the DRE Simulation model is presented, in a step-by-step manner. In this way, the model is able to compare the baseline case of a grid -based power supply and a DRE-based energy supply. 







Key Outputs

The model interface allows users to access the model, change inputs and generate scenarios. Key outputs generated are as follows,   


Solar Capacity

The capacity represents the rated output of a generator for a prescribed set of conditions which is typically the maximum power available continuously.


Accumulated Cost


Allows users to estimate costs that can accrue over specific periods of time.


Annual Cost

Allows users to compare the cost-effectiveness of options that have unequal lifespans.





Case 01 >

Healthcare

Implementing DRE system when the model user is a Medical Officer in rural Karnataka
Problem Statement
The doctor practising as a Medical Officer (MO) at a healthcare facility in rural Karnataka faces frequent power disruptions due to load shedding. Such power outages present significant challenges in providing essential healthcare services. Due to this, the facility heavily depends on diesel or petrol-powered generators for electricity during emergencies and nighttime operations. In such a scenario, the MO often ends up referring patients to other facilities for a reliable treatment. Moreover, the MO also struggles in completing his administrative duties due to unreliable energy supply, which often adds his workload to coordinate with the electricity department. 

Solution
The MO can consider installing a DRE system at the healthcare facility. 


Read the case study




Case 02 >

Livelihood

Implementing the DRE system when the model user is a micro entrepreneur running a general store in Rannebennur block of Haveri district in Karnataka
Problem Statement
Unorganized retail business in peri-urban areas in India, including small family-owned general stores and petty shops, accounts for about 93% of India’s retail market. Often, traditional entrepreneurs running these small shops seek to diversify and expand their services. For example, they may add printing, xerox, and lamination services in areas with a high number of students, or refrigeration to store cool beverages in hot areas. However, these services in the shop face significant challenges because of the lack of reliable electricity, which can lead to frequent outages, overloading, short-circuits, and thermal hazards, especially in poorly constructed shop structures.

Solution
Entrepreneurs can consider installing a DRE system at the shop.







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