Evaluating Off-Grid Energy Solutions for Rural Demand in Brazil – A Case study

Abstract

Recently, Electrical energy enables the operation of machinery, heat generation, and information transmission. This energy is generated, transmitted, and distributed until it reaches the end consumer; however, interruptions in the power supply pose significant challenges, especially for rural producers in the state of Goiás, who face losses such as food spoilage and the death of animals in breeding facilities. With the advancement of distributed generation, consumers are increasingly able to produce their own energy, becoming prosumers. This study presents a case analysis of a rural property located in Cezarina, Goiás, Brazil, aiming to identify the most suitable solution for ensuring a reliable energy supply through alternative generation sources. Three scenarios are evaluated: (1) Grid Electricity + Backup Generator, (2) Grid Electricity + Off-Grid Photovoltaic System, and (3) Grid Electricity + Off-Grid Photovoltaic System + Battery Storage. Based on the property’s energy demand, equipment is dimensioned for each configuration, and a financial analysis is conducted using key indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Payback Period, and Levelized Cost of Energy (LCOE). The results indicate that the "Grid Electricity + Off-Grid Photovoltaic System + Battery Storage" scenario presents the best overall feasibility. Although it requires an initial investment nearly nine times higher than the traditional "Grid Electricity + Backup Generator" configuration, it offers a lower LCOE and demonstrates greater long-term financial and operational advantages over a 30-year analysis horizon.