Electrification Processes in Developing Countries: Grid Expansion, Microgrids, and Regulatory Framework

Shortages and poor diversification of generating capacity, high environmental impacts, and low qualities of supply and affordability are common characteristics of the electricity sector in most developing countries (DevCs). Recent cost reductions in the telecommunication sector and some generation technologies, especially renewable-based, with improved economic feasibility have paved the way for new electric infrastructures. This is especially true for emerging economies, as locally dispatched hybrid microgrids introduce flexibility and show the promise of technical and economic advantages. The design and integration of microgrids require detailed assessments to ensure the effective deployment of capital to minimize the risk of stranded assets and capital waste. Microgrids can be considered an affordable option for a rapid response to the electrification challenge, recognizing that, in the longer horizon, a sharing of resources with the bulk electrical power system will remain, technically and economically, advantageous. This article presents a comprehensive review of the approaches commonly adopted for microgrid electrification. A “real-life” study case is reported to highlight the operational challenges of a stand-alone microgrid versus a grid-connected system. The need for an improved regulatory framework is presented as the cornerstone problem to be solved to allow an effective integration of microgrids in the national grid.