Rural electrification in Bhutan and a methodology for evaluation of distributed generation system as an alternative option for rural electrification

Electrification is key to the development of rural areas. The benefits of rural electrification are immense but many developing countries are not able to afford it due to high cost and scarce resources. In general, the extension of the national electricity grid into rural areas in developing countries is uneconomic. Distributed generation (DG) is an alternative approach to rural electrification. This study looks at a methodology for evaluation of DG as an alternative path to rural electrification in Bhutan. An algorithm based on a set of criteria is proposed to evaluate different DG options. The levelised energy cost can then be used to select the cheapest option from the most feasible options obtained from the evaluation.