Advancing Economical and Environmentally Conscious Electrification: A Comprehensive Framework for Microgrid Design in Off‐Grid Regions

Abstract The design of renewable energy systems traditionally emphasizes life cycle costs, often focusing primarily on emissions rather than a comprehensive life cycle impact assessment. This research proposes a four‐tier methodology to balance cost‐effectiveness and sustainability in the electrification of remote areas. Tier 1 focuses on understanding the community context by analyzing electrical load profiles, meteorological data, and component specifications for microgrid design. Tier 2 evaluates the feasibility of various systems, optimizing them through cost analysis and Multi‐Criteria Decision‐Making (MCDM) to rank alternatives. Tier 3 assesses environmental impacts using life cycle assessment, ranking alternatives based on environmental criteria. Tier 4 integrates cost and environmental rankings to determine the most suitable energy configurations, followed by sensitivity analysis to ensure robust decision‐making. The methodology is validated through a case study of an unelectrified remote community, demonstrating that the PV‐Wind Turbine‐Biomass Generator‐Converter configuration is the most robust alternative, proving to be the optimal choice in 50% of the analyzed scenarios, achieving a Cost of Energy of 0.213 USD/kWh while minimizing environmental impact across all 18 criteria considered over a 25‐year life cycle. This novel framework offers a scalable approach to designing renewable energy systems, enhancing sustainable electrification efforts in developing regions.