Cost consideration of installing facilities for off-grid distribution system supplied only inverter power sources

Because long distribution lines are vulnerable to the effects of natural disasters several studies are underway on removing distribution facilities and access lines to remote area and creating islanding distribution systems (off-grid) there using distributed power sources. Inverter power sources are considered to be useful for such off-grid power sources. However, one of the problems facing this is recovering the initial capital expenditure costs. In this paper, we consider, as a general concept, the cost impact assessment of electricity retailing revenues (as a PPA project) in addition to the conventional CAPEX cost assessment and operating costs. At the same time, this paper provides a unique reference for pricing when introducing PPA projects in Japan.