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In the context of last-mile electrification of rural communities, stand-alone solutions like Solar Home Systems are often considered an equivalent option for access to electricity as other technologies, such as minigrids and connection to the main grid. In this work, the authors question this paradigm and propose an alternative approach that takes into account the limited service, and in turn, limited development possibilities, that Solar Home Systems grant to their users. A monetary penalty is applied to this technology based on the missed services. The conceived approach is applied to a case study in the district of Cochabamba, Bolivia, thanks to the cooperation with a local NGO. Results show how the inclusion of shadow costs influences the optimal electrification strategy in terms of users connected to the main grid by up to 33%, highlighting how standard approaches tend to overlook key aspects of access to electricity linked to the possibility of development. • Different electrification strategies are not equivalent in adequacy of service. • Least-cost methods cannot effectively compare grid connection and Solar Home Systems. • We define a method to make technologies economically comparable through shadow costs. • A two-stage MILP is applied to the case study of Omereque, Bolivia. • Through this methodology more equitable electrification planning can be achieved. [ABSTRACT FROM AUTHOR]

Efforts towards ensuring clean and affordable electricity for all have been progressing slowly in rural, off grid areas of developing countries. In this context, hybrid microgrids may offer reliable and potentially clean electricity for isolated locations. Nevertheless, the process of planning and operation of these systems faces several challenges, often due to the uncertainties related to the renewable resources and to the stochastic nature of electricity consumption in rural contexts. This paper tackles this problem and contributes to the literature in bridging the gap between field practices and two-stage stochastic modeling approaches by identifying an open-source modeling framework which is then applied to real local data. As reference case-study, we consider a microgrid built in 2015 in Bolivia. Overall, the optimal system results from a compromise between the Net Present Cost, the peak capacity installed and the flexibility (to balance variable generation). Different approaches to size isolated microgrids are tested, with the conclusion that methods accounting for the uncertainty in both demand and renewable generation may lead to a more robust configuration with little impacts on the final cost for the community. • The historical monitoring data from a remote PV-diesel microgrid in Bolivia for rural electrification is presented. • A novel two-stage optimization framework is developed for the robust design of such systems under uncertainty. • Components models and performance curves are derived from the monitoring data. • Among different model formulations, stochastic MILP models generate the most robust system configuration. • Recommendations are formulated regarding the optimal configuration with respect to the existing system. [ABSTRACT FROM AUTHOR]