In this work, solar powered microgrids are investigated as an application of energy frugality. Energy frugality means solving the energy needs of the poor by frugal innovations. Microgrids are small electricity networks that include both local production and consumption.A techno-economic analysis of microgrid cases with different parameters and locations was performed. The tools included PVSyst program for technical simulations, simple DC grid model for grid analysis and Retscreen program for economic feasibility study.The optimal size for a microgrid depends on the target one wants to achieve. Economic feasibility study suggests that increasing the ratio of consumption to production would increase the feasibility of a microgrid. It was found that the energy produced with solar powered microgrid is competitively priced compared to other available options. The LCOE for electricity produced with the microgrid was 0.42 Eur/kWh in the Indian case and 0.109 in the Finnish case. The Indian and Finnish microgrid cases had an IRR of 8% and 2.9%, respectively. Based on these results, we can say that a solar microgrid would be economically feasible. In developing countries solar microgrids help alleviate energy poverty as true energy frugal innovations. In developed countries they can be used to increase the reliability of electricity network or to increase the renewable energy production at a competitive cost.
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