Power distribution caters to both rural and urban areas, both of which have different characteristics. The consumer population in the rural areas is largely residential and agricultural, while in the urban areas, the consumer mix is residential, commercial, and industrial to a certain extent. Both the consumer segments have their distinct characteristics and their own set of problems. Distribution in the urban areas is characterized by higher consumer density and higher rate of load growth. Moreover, a big challenge facing the power distribution sector is T&D losses. A number of technical and non-technical factors are contributing to the high transmission and distribution losses (T&D) such as not billing 100%, difficulty in identifying loss making areas, old conductors, voltage unbalancing, over loading of transformers, low collection efficiency etc.
A mini-grid, also sometimes referred to as a micro-grid or isolated grid, is an off-grid system that involves small-scale electricity generation (10 kW to 10MW) and which serves a limited number of consumers via a distribution grid that can operate in isolation from national electricity transmission networks.
The second and equally competitive option is to use stand-alone systems. Stand-alone systems are small electricity systems, which are not connected to a central electricity distribution system and provide electricity to individual appliances, homes or small productive uses such as a small business. They thus serve the needs of individual customers, while utilising locally available renewable resources.
