Case Study on Smart Microgrid Optimization with Vehicle-to-Grid and Renewable Integration in Rural India

Abstract

Access to reliable and sustainable electricity remains a critical challenge in rural India, where frequent outages and dependence on fossil fuels hinder socioeconomic progress. This study aims to evaluate the technical and economic feasibility of a hybrid renewable microgrid integrating photovoltaics (25 kWp), biomass generation (10 kW), and Vehicle-to-Grid (V2G) technology to support the electrification of Alamarathupatti village in Tamil Nadu. A 100% household-level energy survey was conducted to obtain accurate load profiles, revealing an average daily energy consumption of 92.3 kWh and a peak demand of 12.1 kW in the evening. Using HOMER Pro and MATLAB/Simulink, the microgrid was modelled to meet the village's total load, with PV contributing 72.6% of daily energy and biomass covering 27.4%, particularly during non-solar hours. V2G integration provided 4–5 kWh per vehicle during peak periods, enhancing flexibility and grid resilience. The system achieved a Levelized Cost of Electricity (LCOE) of USD 0.094/kWh, lower than the regional tariff of USD 0.115/kWh, resulting in annual household savings of USD 38–45. It also reduced CO₂ emissions by 14.6 tons/year, primarily by replacing diesel and kerosene. The Net Present Cost (NPC) over 20 years was USD 47,200, with a payback period of 7.3 years. Compared to existing models, this study introduces a replicable, flexible, and resilient microgrid design suited for rural, agriculture-based communities. In conclusion, the proposed system offers a scalable, sustainable energy solution aligned with India’s rural development and decarbonization goals.