ABENEZER BEKELE2026-03-092024-10-22https://etd.hu.edu.et/handle/123456789/1155Access to electricity is a key indicator of a country's development level. However, in Ethiopia, 45.8% of the total population lacks access to electricity, with rural areas facing even higher rates at around 57.2%. In the Southern Nations Nationalities and People's (SNNP)region, the situation is particularly dire, with 62.1% of the population lacking electricity access, the highest among all regions. Consequently, many villages in this region rely on traditional energy sources, leading to environmental pollution, health issues, deforestation, and hindrance to development. To address this challenge, Ethiopia aims to provide electricity access to all by 2030, with microgrid development playing a crucial role. This study utilizes Multi-Tier Framework (MTF) based categorization of village households to develop microgrids, considering factors such as households' income levels and willingness to pay electricity bills. Three villages—Toba, Koza, and Womba—from the SNNP region are selected for optimal microgrid planning and control. Sensitivity analysis is conducted, considering variables such as Global Horizontal Irradiance (GHI) variation, Photovoltaic module and battery prices, allowed battery usage levels, and various capacity shortage levels. The impact of these variables on Net Present Cost (NPC), initial capital cost, and Cost of Energy (COE) is analyzed using HOMER Pro software. In Toba microgrid, for instance, a 10% capacity shortage leads to a 23.82% reduction in COE, illustrating the significance of such considerations. The study also investigates the impact of microgrid clustering by interconnecting three individual microgrids and conducting techno-economic analysis. Despite additional interconnection costs, the benefits in terms of technology, economics, and reliability outweigh standalone microgrid operation. A Master-Slave architecture-based Quasi-Dynamic Simulation Language (QDSL) control model of the microgrid cluster is developed using DIgSILENT PowerFactory2022 software, enabling Quasi-Dynamic Simulation. The results demonstrate improved power utilization, reduced PV curtailment losses, and decreased load shedding compared to operating microgrids individually. Finally, a feasibility study of grid extension for Toba microgrid, located 130 km from the nearby Sawla substation, is performed to assess its viabilityenOptimal planningMicrogrid clusterMulti-Tier FrameworkQuasi Dynamic SimulationThesis