Several Western Balkan states face the consequences of the Yugoslavian war,
which left hometowns with dilapidated electricity grid connections, a high
average age of power plant capacities and low integration of renewable
energy sources, grid bottlenecks and a lack of competition. In order to
supply all households with electricity, UNDP Croatia did a research on
decentralized supply systems based on renewable energy sources.
Decentralized supply systems offer cheaper electricity connections and
provide faster support to rural development. This paper proposes a developed
methodology to financially compare isolated grid solutions that primarily
use renewable energies to an extension of the public electricity network to
small regions in Croatia. Isolated grid supply proves to be very often a
preferable option. Furthermore, it points out the lack of a reliable
evaluation of non-monetizable aspects and promotes a new interdisciplinary
approach.
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