Integrated Analysis of Hybrid Systems for Rural Electrification in Developing Countries

Timur Gül

Supervisor and Examiner Assoc. Professor Jan-Erik Gustafsson Division of Land and Water and Water Resources Engineering Royal Institute of Technology

Supervisor in Germany Dr. Dirk Aßmann Wuppertal Institute for Climate, Environment, Energy

Reviewer Michael Bartlett Department of Energy Processes Royal Institute of Technology Stockholm 2004

TRITA-LWR Master Thesis ISSN 1651-064X LWR-EX-04-26

Abstract

I

Abstract
Around 2 billion people world-wide do not have access to electricity services, of which the main share in rural areas in developing countries. Due to the fact that rural electricity supply has been regarded as essential for economic development during the Earth Summit on Sustainable Development in 2002, it is nowadays a main focus in international development cooperation. Renewable energy resources are a favourable alternative for rural energy supply. In order to handle their fluctuating nature, however, hybrid systems can be applied. These systems use different energy generators in combination, by this maintaining a stable energy supply in times of shortages of one the energy resources. Main hope attributed to these systems is their good potential for economic development. This paper discusses the application of hybrid systems for rural electrification in developing countries by integrating ecological, socio-economic and economic aspects. It is concluded that hybrid systems are suitable to achieve both ecological and socio-economic objectives, since hybrid systems are an environmental sound technology with high quality electricity supply, by this offering a good potential for economic development. However, it is recommended to apply hybrid systems only in areas with economic development already taking place in order to fully exploit the possibilities of the system. Moreover, key success factors for the application of hybrid systems are discussed. It is found that from a technical point of view, appropriate maintenance structures are the main aspect to be considered, requiring the establishment of maintenance centres. It is therefore recommendable to apply hybrid systems in areas with a significant number of villages, which are to be electrified with these systems, in order to improve financial sustainability of these maintenance centres. The appropriate distribution model is seen as being important as well; it is thought that the sale of hybrid systems via credit, leasing or cash is the most likely approach. In order to do so, however, financial support and capacity building of local dealers is inalienable.

Table of Contents

II

Table of Contents
Abstract ........................................................................................................................I Table of Contents....................................................................................................... II List of Figures ........................................................................................................... IV List of Tables.............................................................................................................. V Acronyms .................................................................................................................. VI 1 1.1 1.2 2 Introduction ..................................................................................................... 1 Objective ........................................................................................................... 2 Methodology...................................................................................................... 2 Technologies for Rural Energy Supply ........................................................... 4

2.1 Decentralised Electrification .............................................................................. 4 2.1.1 Diesel Generating Sets ....................................................................................... 4 2.1.2 Renewable Energy Technologies ....................................................................... 5 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 3 Hybrid System Technology................................................................................ 6 Relevance .......................................................................................................... 6 Hybrid Systems in Developing Countries........................................................... 7 Other Hybrid Systems........................................................................................ 9 Technical Aspects ............................................................................................ 11 Grid-based Electrification ................................................................................ 14 Analysis of Impacts ........................................................................................ 16

3.1 Scope of the Analysis....................................................................................... 16 3.1.1 Scenario Definitions......................................................................................... 16 3.1.2 Modelling Assumptions ................................................................................... 18 3.2 3.3 3.4 3.4.1 3.4.2 3.4.3 The Concept of Indicators of Sustainability...................................................... 18 Developing an Indicator Set for Energy Technologies...................................... 19 Analysis of Sustainability ................................................................................ 21 Ecological Dimension ...................................................................................... 21 Socio-Economic Dimension............................................................................. 27 Economic Dimension....................................................................................... 33

3.5 Results and Discussion..................................................................................... 42 3.5.1 Results ............................................................................................................. 42 3.5.2 Discussion ....................................................................................................... 45

.....................................................................................................................1 Calculation of Electricity Demand........................1.................................................................................................. 47 4............ 63 Political Factors ..........2..................................... 105 D................................... 53 Organisation .................1 4................6 6 Hybrid Systems in Inner Mongolia..................... 93 Annex D: Cost Analysis ........................................................................................ 49 Baseline ..........................2 Project Description ............................................................. 52 Key success factors.......................2.................... 47 4...............................................3 Economic Issues.................................2 5................................................... 113 . 64 Summary and Conclusions .............................................................................. 53 Financing ...................1 5...... 79 Annex C: Analysis of Impacts ....................................................1 Ecology.............................1 Investment Costs.... 110 Terms of Reference ..........................................................................2 Electricity Generating Costs................3 5.......... 70 Annex B: GEMIS Scenario Calculations ........ 75 B...3 Electricity Generating Costs from Different Sources ................................................................................ 57 Capacity Building ................................................................... 86 C............... 49 Aspects of System Dissemination ............................................................................1 Scenario Definitions ............................................ 62 Assessment of Electricity Demand and Potential for Renewable Energies.......................................................................... 47 4.......................................................................................................................3 5 5................1........................... 68 A..............................................................2 4..................................... 75 B.................. 86 C.... 68 A..............2 Modelling Results ............................................................................................................................................................................................................................................................................................. 104 D................................. 49 Project Description ............................................1 Hybrid Systems in Indonesia......... 87 C.................................................................2 System Design ................................... 60 Technical Aspects .....................................5 5.......................................................................................... 47 4...................................1 Baseline ..............................................................................................................................................................2.......................................................................................... 66 Annex A: Electricity Demand and System Design......4 5.........................................Table of Contents III 4 Project Examples .........2 4..2 Socio-Economic Issues.......... 101 D........

. 85 Figure D...............13 Comparative Assessment of Impacts on Health ..... 80 Figure B.. 32 Figure 3.................................................................. 60 Figure B.......... 83 Figure B......................23 Results Economic Assessment .................. 8 Figure 3..1 GEMIS Results: GHG Emissions ............. 42 Figure 3..14 Comparative Assessment of Investment Costs....... 33 Figure 3................ 38 Figure 3..... 24 Figure 3...... 31 Figure 3.15 Electricity Generating Costs in Comparison .....................4 Comparative Assessment of Air Pollutants Emissions ............................................. 25 Figure 3............................3 GEMIS Results: Emissions of Air Pollutants...........................2 Specific Investment for Hybrid Systems of Different Capacities... 28 Figure 3.....................................................8 Comparative Assessment of Cultural Compatibility and Acceptance ...... 25 Figure 3...4 Illustration of Electricity Generating Costs for Wind/Diesel ................................................. 108 Figure D.. 103 Figure D............12 Comparative Assessment of Employment Effects....................................4 Selected Air Pollutants ....................... 44 Figure 3..3 GEMIS Results: Air Pollutants ... 81 Figure B...............................18 Comparative Assessment Regional Self-Supply and Import Independence 40 Figure 3................6 Cumulative Energy Demand According to Resources........................... 108 ...22 Results Socio-Economic Assessment .....17 Comparative Assessment of Maintenance Requirements ..... 41 Figure 3...... 30 Figure 3.. 22 Figure 3........................... 23 Figure 3.......... 85 Figure B..........5 Cumulative Energy Demand (Primary Energy).......................16 Comparative Assessment of Electricity Generating Costs.......2 GEMIS Results: Methane Emissions ..................1 Specific Investment for Wind Power Plants and Diesel Gensets ..1 Principle Circuit of Hybrid Systems ............................................ 84 Figure B....................... 44 Figure 5..............5 GEMIS Results: Cumulative Energy Demand of Primary Energy .......... 39 Figure 3.............................................. 104 Figure D...........11 Comparative Assessment of Potential for Economic Development ....... 26 Figure 3....List of Figures IV List of Figures Figure 2...........................................10 Comparative Assessment of Participation and Empowerment......9 Comparative Assessment of Supply Equity .................... 36 Figure 3......................................................................19 Comparative Assessment of Supply Security................ 23 Figure 3................7 Comparative Assessment of Noise Pollution ........ 29 Figure 3........................................20 Comparative Assessment of Future Potential...............................3 Illustration of Electricity Generating Costs for PV/Diesel...................... 43 Figure 3.................................................................21 Results Ecology Assessment .................................................1 GEMIS Results: Greenhouse Gas Emissions ............................................2 Comparative Assessment of GHG Emissions ............................................................6 Comparative Assessment of Resource Consumption ..1 Hybrid Village Systems: Distribution Steps ......................... 37 Figure 3.....................

................................ 19 Table 3......................................6 Investment Costs of Different Scenarios for Rural Electrification ...........4 Main Modelling Assumptions..........................7 Electricity Generating Costs PV/Wind.......... 49 Table A........ 93 Table C.. 80 Table B..................................3: Hybrid Systems at Different Diesel Prices ......1 Hybrid Systems in Inner Mongolia ..................2 Criteria and Indicators for the Assessment of Energy Technologies ............................. 106 Table D......................................................... 95 Table C.................. 96 Table D............................. 70 Table A............ 102 Table D..3 Peak and Base Loads for Different Village Sizes ............ 20 Table 3...........................................1 Main Assumptions for the Cost Analysis .......... 68 Table A............3 Cumulative Energy Demand (Primary Energy) ...........................................................................................3 Investment Costs for Diesel Gensets.........2 Investment Costs for Small-Scale Wind Power Plants..................... 109 Table D.... 16 Table 3......................................................................... 68 Table A............................................List of Tables V List of Tables Table 3. 105 Table D...............................................................4 Main Assumptions for the Cost Analysis ........ 106 Table D... 69 Table A........4 Range of Investment Costs for Hybrid Systems ...... Inner Mongolia...10 5 kW Hybrid Systems at Different Diesel Prices .....2 Air Pollutants........... 34 Table 3................................................. 102 Table D.8 Investment and Operating Costs of Different Household Systems......................................... 111 Table D..............5 Electricity Generating Costs of PV/Diesel Systems [€/kWh]........................ 38 Table 4......................1 Scenarios and Technologies for Rural Electrification. 112 ...................................1: Initial Investment Costs for Diesel Gensets........1 Amount of Greenhouse Gas Emissions .......1 Standard Household Characteristics.................. 101 Table D.. 84 Table C.................................................................6 Electricity Generating Costs of Wind/Diesel Systems [€/kWh] ........................................ 71 Table B.......... 36 Table 3.2: Electricity Generating Costs for Diesel Gensets . 82 Table B..................... 111 Table D..3 Performance Assessment Scheme.5 Share of Technologies for Electricity Generation....................................................5 Specific Investment Costs of Hybrid Systems..................9 Electricity Generating Costs of Hybrid Systems in Inner Mongolia ...............................7 Electricity Generating Costs for Different Scenarios........ 35 Table 3...............................2 Rich Household Characteristics .......................................................................................................................

e. produces i.Acronyms VI Acronyms AC CED CSD DC EMS GEF GHG GTZ KfW OECD PV Schueco SMA SHS WHO Alternating Current Cumulative Energy Demand Commission on Sustainable Development Direct Current Energy Management System Global Environmental Facility Greenhouse Gas Deutsche Gesellschaft für Technische Zusammenarbeit Kreditanstalt für Wiederaufbau Organisation for Economic Co-operation and Development Photovoltaic Schueco International KG.e. produces i. inverters Solar Home System World Health Organisation . different solar energy systems SMA Regelsysteme GmbH.

which had been attributed to energy services in the past. Social benefits related to improved energy services include poverty alleviation by changing energy use patterns in favour of non-traditional fuels. i. Today. which is a major occupation of women in developing countries. Recent approaches meet this challenge with a focus on decentralised systems for the electrification of rural areas. however. their improved access to modern energy services has been regarded as essential for sustainable development during the Earth Summit on Sustainable Development in Johannesburg. The effect of increasing global CO2-emissions will be the consequence.e. productivity increases or improved economic opportunities. Main hope is here attributed to the application of renewable energies as wind. The challenge.4 billion people or 18 % of the world’s population without electricity supply (IEA. however. 2002). however. Without states taking heavy financial initiatives. and the creation of new opportunities for women by reducing the time for the collection of wood for cooking and heating (WEHAB Working Group. will account for more than 60 % of this increase (IEA. This is mainly due to the goals that are associated with the development of energy infrastructure. without on the other hand increasing reliance on fossil fuels. the situation in 2030 will remain more or less unchanged with 1. is likely to increase. with the increase being mainly based on fossil fuels. which are especially suited for decentralised electricity generation. is to improve access to modern energy services. 2002). Global consumption of primary energy resources. 1996a). 2002). Developing countries. the combating population growth by shifting relative benefits and costs of fertility towards lower rates of birth. by catalysing the creation of small enterprises or livelihood activities in evening hours (WEHAB Working Group. major ones being economic and social goals. the compatibility to climate is better than for currently used options. 2002. could not live up to experiences. thus. but additional measures are required as well. 2002). This lack of access to electricity mainly applies to rural areas in developing countries. Around 2 billion people world-wide do not have access to modern energy services. energy services are indeed seen as a major driving force to economic development. solar and hydro power. 3. is the instable energy provision due to the fluctuating nature of the resources. In response to the lack of electricity supply in developing countries. especially in Asia. The outstanding key role in economic development. 2. A major problem related to the application of renewable energies in decentralised systems.1 Introduction 1 1 Introduction Recent research on the development of the world’s energy state and the future development scenarios show alarming developments: 1. A pos- . Higher availability of jobs. and their application strengthens the security of energy supply by using local resources. time that could be used for education or employment instead. and progress being made over the last 25 years has applied mainly to urban areas (The World Bank. Renewable energies use environmentally sound technologies: their consumption does not result in the depletion of resources. are the effect that can be expected from better energy services.

14th. while chapter 5 then outlines the key success factors for the application of hybrid systems. Moreover.1 Introduction 2 sibility to solve this problem is to backup the renewable energy generator with another power generator in a so-called hybrid system. which have already been applied in developing countries. 2003. where hybrid systems were applied. the information here is limited to the findings of the literature review and the interviews. 2003. the question whether and to which extent these systems satisfy the expectations on rural electrification projects with regard to sustainable development. These key success factors are related to aspects of financing. 1. Due to the absence of respective surveys. However. this analysis is performed in comparative terms on the basis of an indicator set developed here. A number of projects applying hybrid systems for electricity generation have already been carried out. chapter 6 gives a summary and an outlook to the perspective of hybrid systems in developing countries. 2003. . has not been investigated yet and shall be matter of this paper. as well as with experts from Kreditanstalt für Wiederaufbau (KfW) on July. 7th.1 Objective The objective of this paper is to analyse and assess the sustainability of the application of hybrid systems for rural electrification in developing countries. Finally. In this paper. socio-economic and economic issues . Firstly. 28th. several are currently under implementation. an indicator system on the three dimensions of sustainability – ecology. therefore. and Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) on August. site visits could not be held and. Solar Home Systems and biogas plants for electricity generation. Several factors have been limiting to this work. a literature research was performed first. while the potential of other such possibilities is briefly discussed as well. The sustainability of hybrid systems is assessed relative to the other potential decentralised electrification scenarios: diesel generator-based mini-grids. which needs to be ensured by setting the right framework. For the assessment of sustainability in Chapter 3. 1. Special attention is paid to hybrid systems. is just now stepwise gaining importance. although being known for quite some years already.is developed. The objective in investigating key success factors is to maintain the sustainability of a project for rural electrification with hybrid systems. The findings of this research were then discussed with project developers at the fair Intersolar in Freiburg/Germany on June. organisation. capacity building and others. Another objective here is to find key success factors for the application of hybrid systems. This approach. the extension of the conventional grid is considered as well.2 Methodology To pursue the above objectives. the different systems for energy provision being important for the comparative assessment of sustainability are presented first. Chapter 4 then describes experiences with projects in Indonesia and Inner Mongolia. accepting that sustainability is an ongoing dynamic process. which are of importance for any decentralised rural electrification project and especially for hybrid systems. The different options for rural electrification are then investigated and compared with regard to these indicators.

Therefore.1 Introduction 3 Moreover. What proves to be right in one country can be completely wrong for another country. . the findings of this analysis are always to be seen as strongly generalised and their applicability must be proven anew in each case. the analysis of hybrid systems in developing countries in general can come only to rather vague results.

3. Typically. including technical aspects to be considered and main applications. accepting that no electricity can be supplied in times the genset is out of commission. power supply in developing countries for rural areas takes place in three different ways (Kleinkauf. potential other hybrid solutions will be discussed against the background of applying them in developing countries. With diesel gensets. The approaches of local and decentralised electrification are obviously closely connected and can be met by similar technologies.1. Diesel gensets have problems with short durability. by supplying single consumers and load groups. with the other gensets providing backup (ESMAP. this chapter will also briefly discuss the centralised approach of the extension of the conventional grid to rural areas. by expansion of interconnected grids. This problem can be met by using a group of diesel gensets. the effi- . the different hybrid systems. 2. most commonly diesel generating sets and renewable energies. being adapted to the needs of the consumers...1 Decentralised Electrification In highly fragmented areas or at certain distances from the grid. Generally. which are in operation in developing countries nowadays.. decentrally. by erecting or extending stand-alone regional mini-grids. will be presented. single diesel gensets can be applied for electrification. the decentralised approaches of regional mini-grid systems or local supply of single consumers can become competitive due to lower investments and maintenance costs compared to large scale electrification by expanding interconnected grids. J. locally. 1996/1997): 1. which is due to the fact that they work very inefficiently when running just at fractions of their rated capacity. 2. centrally. the electric current is produced within the village itself. due to repair or maintenance. Finally. In a next step. They provide a simple solution for rural electrification and can be designed for different capacities.2 Technologies for Rural Energy Supply 4 2 Technologies for Rural Energy Supply This chapter gives an overview on potential solutions for rural energy supply. In cases security of supply is not of major importance. Those of importance for this paper are described more detailed firstly in the following. 2000). 2. The voltage of the generator is often adjusted to be higher than the required 220 Volt for the household because of high losses within the local distribution lines (Baur. 2000). F. W. Moreover. the options of importance for this work are discussed more in detail. Different technological options are in practice. i.e. The objective is to provide a technical background for the evaluation of these options in the following chapters.1 Diesel Generating Sets Small diesel-power generating sets (diesel gensets) have been the traditional way to address the problem of the lack of electricity. Raptis.

Diesel gensets are typically just operated for around 4 hours in the evenings. 2000). The photovoltaic modules are usually installed on rooftops. D. they convert the insolation into electric current. Moreover. Moreover.1. K.000 gallons of industrial fuel and diesel and putting the sensitive ecosystems of the islands to high risks. 2001).. J.2 Technologies for Rural Energy Supply 5 ciency of operation is between 25-35% (Turcotte.2 Renewable Energy Technologies The use of renewable energy technologies is a very promising approach towards meeting environmental. Many. The battery supplies electricity to the consumer during evening hours and in case of insolation shortages due to unfavourable weather conditions. excrements from animal husbandry) for the production of biogas under anaerobic conditions2.. L. where fuel is heavily subsidised. which requires high cross-sectional wiring in order to avoid high losses (Baur. 2. The application of inverters to provide alternating current (AC) at a voltage of 220 Volt is possible. two technologies are of high importance: Solar Home Systems (SHS) for supply of single consumers. The originating gas consists of 55 to 70% from Methane (CH4). but increases overall system costs.. hydropower and larger-scale photovoltaics. be adapted to individual needs.. however. areas are far away or isolated (i. 1996). S. and very often old motors from cars are used for the purpose of electrification. A. One of the basic problems for the application of diesel generating systems in developing countries. is more a problem related to infrastructure. islands) from higher developed regions so that the regular supply with diesel fuel becomes a logistical problem and an important financial burden even in countries. The systems work at voltages of 12 or 24 Volt. F. wind farms.e. the transportation of diesel fuel can result in severe environmental damage. social as well as economic goals associated with rural electrification.1 Both are presented in the following.. M.e. 2001). and biogas for local mini-grids or single consumers. which can be used in gas burners or motors 1 More potential renewable technologies include stand-alone wind turbines.. the tanker Jessica ran aground close to San Cristobal. especially rural. . Pneumaticos. A common 50 Wp can supply lighting and a TV/radio for several hours per day (Preiser. On a local level. In 2001. as experienced for example at the Galapagos Islands. frequent start-up and shut-down procedures decrease their lifetime as well. spilling out 145. which is used for loading the battery. Solar Home Systems Solar Home Systems (SHS) typically include a 20. the capacity can technically be expanded easily and.. Schaeffer. Cosgrove-Davies. the battery offers the possibility to meet peak load demand for short periods of time. thus.to 100-Wp photovoltaic array and a leadacid battery with charge controller supplying energy for individual household appliances (Cabraal. Sheriff. Moreover. The electricity current is provided in direct current (DC). 2 Anaerobic conditions: in absence of oxygen. Biogas Biogas systems utilise micro-organisms for the conversion of biomass (i.

i. resulting in intermittent delivery of power and causing problems if supply continuity is required. Main applications for rural electrification in developing countries include independent electric power supply for 3 To generate 1 kWh of electricity. They can be designed as stand-alone mini-grids or in smaller scale as household systems. Main component of a biogas plant is the digestion tank (fermenter). basically by combining the technologies presented above.2 Technologies for Rural Energy Supply 6 for the production of electric current3 (Kaltschmitt. Although other renewable energy resources than solar and wind can in principle be used in hybrid systems as well. acidification and methane formation. including Photovoltaic Generator and Diesel Generating Set (Diesel Genset). Biogas systems are widely used in India and China for the supply of single consumers or local mini-grids. . The presentation of these other potential options is left for section 2.e. Photovoltaic and Wind Generators. solar cells and wind power plants” (Weber. A system using complementary energy supply technologies has the advantage of being able to supply energy even at times when one part of the hybrid system is unavailable. the system components. 1999a). 1999a).. R. 1 m3 biogas is necessary (GTZ. Wind Generator and Diesel Genset.1 Relevance One of the main problems of solar as well as wind energy is the fluctuation of energy supply.2. 2. biogas lamps.2 Hybrid System Technology Hybrid systems are another approach towards decentralised electrification. Hybrid systems can technically be designed for almost any purpose at any capacity. M. this has so far been limited to pilot projects in industrialised countries.2. incubators and refrigerators working on biogas (GTZ. where the organic substrate is decomposed in the three steps hydrolysis.. 2. 1995). 2000) or for gas cookers/stoves. general technical aspects and potential applications. In developing countries these other technology options have not yet gained importance.3. three different types of hybrid systems have been applied in developing countries. A hybrid system can be defined as “a combination of different. This can be avoided by the use of hybrid systems. So far. radiant heaters. This section wants to discuss available technology options. but complementary energy supply systems at the same place.

Figure 2. in cases of low sunlight or low wind. maintaining a stable energy supply during short periods of time (Blanco.4 2. . The complementary resource produces the required energy at times of imminent deep discharge of the battery. 2003). 5.2. .). 5 Storage systems in hybrid systems in developing countries are usually battery aggregates maintaining a stable output over a time frame of one or more days.5 4. The batteries act as “buffers”.e. A charge controller regulates the state of load of the battery. At favourable weather conditions. etc.Missions. . 2003. Georg Weingarten. J.Farmhouses. using the energy surplus to load the battery. A future option might be the hydrogen fuel cell. Residential Buildings. at Intersolar-Fair. . a DC/AC inverter needs to be installed additionally.2 Technologies for Rural Energy Supply 7 - Villages. the battery serves to meet peak demands. Germany. combustion aggregates need to be used for medium.Radio Relay Transmitters. Freiburg. 6. Installation material (safety boxes.Hotels.Irrigation systems. A storage system to guarantee a stable output during short times of shortages.).1.2 Hybrid Systems in Developing Countries A common hybrid system for the application in developing countries generally consists of the following main components: 1. 4 Personal Comment given by Mr. TV/radio. a diesel genset. The appliances (lighting. i.. .or long-term storage. Usually. which can be avoided with hybrid systems. Energiebau Solarstromsysteme GmbH.1 shows a principle overview of how to combine PV. Hybrid systems are applied in areas where permanent and reliable availability of electricity supply is an important issue.e. etc.Desalination Systems. cables. wind and diesel generators in a hybrid system (Roth.4. 2003). .. which might not be satisfied by the renewable system alone. on June 28th. Moreover. Schools. A charge controller. i.2. W. controlling the battery not to be overloaded. Maintaining high availability with renewable energies alone usually requires big renewable energy generators. Rotating masses can be used for shorter time frames (seconds). the renewable part of the system satisfies the energy demand. 2. A primary source of energy. plugs. Hospitals. at the same time loading the battery. a renewable energy resource. All these components and the problems related to their application are further described in section 2.e. i. A secondary source of energy for supply in case of shortages. . 3.

Compared to the common solution for rural off-grid electrification using diesel gensets alone. Energiebau Solarstromsysteme GmbH. Puls.6 depending on the regional conditions and the design of the system. Bopp. Georg Weingarten.. the rest being supplied with the diesel genset. Typically. 2000). at Intersolar-Fair. in climatic regions like Germany a PV/Diesel hybrid system is designed to provide around 50% of the electricity from photovoltaic during winter. Naturally. at Intersolar-Fair. The solar generator can provide about 100% of the electricity during summertime. The CO2 emissions decrease correspondingly.. As can be seen in Figure 2.5 m/s already (Sauer. 7 Personal Comment given by Mr. Freiburg. 2003. while in winter this figure is less.2 Technologies for Rural Energy Supply 8 Solar Generator Charge Control G Wind Generator Charge Control Battery Inverter Mini-Grid / Appliances G Diesel Generator Charge Control Figure 2. Georg Weingarten.2. on June 28th.1.2 Wind/Diesel Wind/Diesel combinations are.1 PV/Diesel Combining Photovoltaic arrays and a diesel genset provides a rather simple solution and is feasible for regions with good solar resources. on June 28th. 2003). H. built up in the same way as are PV/Diesel systems.2. . Energiebau Solarstromsysteme GmbH. 2003. Lowe. Germany. PV/Diesel hybrid systems require a DC/AC-inverter if appliances need alternating current. they can be applied in regions where average wind speed is around 3. Experiences show annual fuel savings of more than 80% compared to stand-alone mini-grids on diesel genset basis. Freiburg. R..2. G. A project at Montague Island even reached an 87% decrease in fuel consumption (Corkish. the hybrid solution using photovoltaic offers great potential in saving fuel. in principal.7 2. et al.1 Principle Circuit of Hybrid Systems 2. the observed fuel saving varies over the year. R.. D.2. Germany. From a perspective of financial competitiveness.. since PV modules provide direct current. If wind 6 Personal Comment given by Mr.

wind and biogas for energy provision.2. 2003). Wiese. . i. breakdowns in energy supply are possible.1 Biogas Hybrid Systems PV/Wind/Biogas ASE GmbH as the performing organisation has created an autonomous hybrid power supply systems for the purification plant of Körkwitz. The PV/Wind/Diesel hybrid system has proven successful in Germany. being able to feed up to 30% of surplus energy under good performing conditions into the public grid.. This is obviously due to the fact that PV/Wind/Diesel hybrid systems involve a higher share of renewable energy resources.3 PV/Wind and PV/Wind/Diesel In some regions the exploitation of both wind and solar resources can become favourable. however. A PV/Wind hybrid system is able to provide energy all time of the day. G. A. Generally. depending on the availability of resources. However.. Of utmost importance is here that wind and solar energy supply complement each other so that energy provision is possible over the whole year. which is not suitable for some non-household applications. the situation is different for PV/Wind systems. While for the other hybrid systems applying diesel gensets. accurate assessment of the resources is essential for the decision on the appropriate system design. being replaced by the diesel generating set when low winds occur over longer periods of time.2 Technologies for Rural Energy Supply 9 speed is sufficient.2.3 Other Hybrid Systems The hybrid systems implemented in developing countries so far do not reflect the whole range of potential solutions. the system was implemented using just wind energy and photovoltaic arrays. M. 2. 2. the wind turbine is in charge of the provision of energy. for a hikers’ inn in the Black Forest of Germany (Kaltschmitt. In the first stage. the battery maintains a stable system.3. During short periods of time with low winds. however preparing the energy management for further expansion using biogas in a decentralised cogeneration plant.. a PV/Wind hybrid system might ideally be supported by an additional diesel generating set for times of extremely unfavourable weather conditions. For the application in developing countries.g.e. if weather conditions are favourable. Here. combining any renewable resource with others is conceivable. 1996). The objective was to provide 80% of the necessary energy.2. 2. situated close to the Baltic Sea in Northeastern Germany. The main components of the system include a 250 kWp solar generator and a 300 kW wind turbine with 3 inverted rectifiers connected in parallel (Neuhäusser. Thus. the objective in designing the system is to maximise the exploitation of the renewable energy resource. where two different resources complement each other. combinations in hybrid systems are worth discussing. i. it must be doubted whether this effect of further reduction of diesel use can trade off the higher investment and operation costs. In regions.2. hospital electrification. This kind of hybrid system has been implemented e. being highly reliable and resulting in a further reduction of diesel compared to other hybrid systems. at coastal or mountain areas with high degree of solar radiation.e. using the renewable energy resources photovoltaic.

Generally it is thought that biogas plants instead of diesel gensets as backup for wind or PV systems offer an environmental benign approach towards rural electrification. microhydropower is more feasible. additional secondary energy needed from conventional fuels (propane or diesel) accounts for 7-11% of the total amount of electricity. The engine is fuelled by biogas. so that the feasibility of Wind/Large Hydropower systems needs to be assessed for each case individually. the adaptation of this hybrid system for rural electrification in developing countries seems unlikely especially from a financial perspective. since this opportunity does not seem economically attractive. another energy resource would therefore be necessary.3. Micro-hydroelectric generators are turbines that are able to op- . so that the potential should be more closely investigated. it is unlikely that these resources are combined in a project in developing countries. 2. or some kinds of fuel cells can be used to generate electricity in addition to the wind turbine. Wind/Biogas The concept of a Wind/Biogas system is to some degree similar to Wind/Diesel hybrid systems. However. Depending on the management strategy and the scenario used for the type of consumers. small gas turbines. here engine generator sets. not be obtained. when river flows are low. conventional gases as propane can be used instead. Since the combination of wind and hydropower offers just limited advantages. During the research for this work it was found out that these kind of systems are currently tested in developing countries in South Asia (ITDG. However. both resources might become low. R. Instead of the diesel genset. If the production of biogas is at times not sufficient. during late summer. Wind/Micro-Hydro and PV/Micro-Hydro While hybrid systems with large-scale hydropower generators seem unattractive. for some locations the situation might be different. 1999). and the combination of both is then disadvantageous. However. Especially in winter. Moreover. more detailed information could. the two resources wind and hydropower tend to complement each other to some extent (Iowa. however.2 Technologies for Rural Energy Supply 10 Information on the performance of the installed system and about the further expansion with biogas could not be obtained within the framework of this work. This is due to the fact that the participating companies have been declared insolvent since implementation and the new operator of the systems could not be identified. Combining three different types of renewable energy systems certainly involves investment costs too high for this purpose. Modelling simulations proved that the availability of wind energy is upgraded by applying biogas systems additionally (Surkow. 2003).2. 2002a).. A key role can be assigned to the size of the systems’ gas storage tank and its operating management. For constant electricity generation. wind resources are better at high elevations. while hydro generators on rivers are usually at lower levels. wind has the potential to take over electricity supply. which is produced in an anaerobic digester. A reasonable statement on the applicability therefore cannot be given here.2 Hydropower Hybrid Systems Wind/Large Hydropower On a seasonal basis.

A holistic approach to create this kind of infrastructure and to make the use of renewable energy technologies in developing countries sustainable is imperative for energy planners and development aid organisations.2 Technologies for Rural Energy Supply 11 erate under low elevation head or low volumetric flow rate conditions.1. a gasification system might be applied as well. since here start-up and shut-down procedures are less frequent. Lack of infrastructure for renewable energies One of the key disadvantages of renewable energies is the fact that they apply new and not yet widespread technologies. generators using vegetable oil for operation offer a potential solution. These plants are often locally available and CO2 neutral. to mention but a few. being mostly produced in the industrialised countries.4. this can be traded off with later cost reduction due to fuel savings. with figures from 1. The decrease in efficiency is 1% for every 100 m above sea level. This approach. frozen in winter). rapeseed or sunflowers. A careful assessment of water resources is therefore essential.000 hours for generators with capacities less than 30 kW (Kininger. the application in hybrid systems is advantageous in this respect. Although the production of vegetable oil requires an additional initial investment. especially those specific to the adaptation in developing countries. and the accordingly missing infrastructure for maintenance of renewable energy technologies. as was further outlined in section 2. makes their adaptation in developing countries a rather difficult task. strongly depending on the way of operation. producer gas is made from biomass in a fluidised bed gasifier and used to fuel internal combustion engines. In comparison to other technical devices. 2. is still matter of research and currently more applicable for industrial purposes (Iowa.1 General Aspects General problems occurring with the elements of hybrid systems are not only specific for hybrid systems. Here.5 °C above a temperature of 20 °C (Wuppertal Institute. and another 1% for every 5. gas turbines or fuel cells. In comparison to the application of diesel gensets alone. Problems and other general technical aspects. but also common for the use of the single elements. however. 2002). Moreover. diesel generating sets are rather sensitive to climatic and geographic conditions. Vegetable oil can be made available by peanut plants.000 – 80. . are briefly summarised below.2.. a hybrid system applying wind or PV support can be attractive. being suitable for small rivers (Iowa. F. To improve the situation of diesel dependence.1. Where rivers have inconsistent flow characteristics (dry in summer. motor generating sets have a wide range of operating hours.2. 2002).4 Technical Aspects This section gives an overview on different technical aspects related to the application of hybrid systems in developing countries. The diesel generating set The non-continuous use of diesel generating sets always results in a reduction of lifetime due to the frequent start-up and shut-down procedures. 2002c). This. 2. including general technical aspects and problems of the system’s components as well as technical management aspects. Instead of conventional diesel gensets. 2002b).

. it also influences the overall performance costs of the system. The following major aspects need to be considered when designing a battery bank for hybrid systems: Capacity Design: When designing a battery bank installation. the application of a charge controller is essential. Energiebau Solarstromsysteme GmbH.2 Technologies for Rural Energy Supply 12 The Storage System The storage device of hybrid systems. it is important to note that a battery’s capacity decreases over lifetime. Furthermore. in most cases lead-acid batteries. 1999a). High temperatures result in an increase of corrosion velocity of the battery’s electrodes. resulting in lower overall costs. 8 Personal Comment given by Mr. the longer the battery’s lifetime. which guarantees that the battery is neither over-charged nor discharged too deeply.8 - - The Charge Controller The charge controller in renewable energy systems has two fundamental functions (IEA. thus significantly reducing the utilisable capacity. 1999a). 2003. The performance of a battery bank is controlled with the help of a charge controller. 2. a battery installation should be designed based on the 80% of the nominal battery capacity (IEA. On the other hand. is of high importance for the system’s reliability and highly influences the system’s maintenance costs (IEA. The charge controller. The end of life of a battery is reached when capacity has declined to 80% of the nominal value. Regulation of the current from the renewable energy generator in order to protect the battery from being overcharged. Freiburg. Low temperatures slow down the chemical reactions inside the battery. The use of storage systems in hybrid power plants has a twofold effect: on the one hand. the storage of power is meant to bypass short times of power shortages. Thus. too. the battery offers support in times of peak demands. The more optimal the performance of the battery bank. Georg Weingarten. though being one of the least costly components in renewable energy systems. Therefore. which cannot be met by the renewable energy source alone. Most controllers additionally regulate the current to the load in order to protect the battery from discharge. overcharge and a low electrolyte level should be avoided. In order to guarantee this. This is due to the fact that an accurately working charge controller increases performance and lifetime of the battery bank. 1998). daily control both of battery acid level and voltage are fundamental. on June 28th. at Intersolar-Fair. resulting in the need for suitable operation and management system. Germany. Deep discharge to less than 50% of the capacity. both high and low temperatures should be avoided as far as possible (IEA. The optimal performance of this component highly influences not only the system’s performance. where the nominal value is given by the manufacturer. Effect of temperature: The nominal capacity is usually given at a battery temperature of 20°C. thus reducing the battery’s lifetime significantly. 1998): 1. is a very sensitive and crucial part of the system.

the objective of system control. in hybrid systems relying on renewable energy technologies for power supply alone (i. Since hybrid systems are typically designed for higher loads than pure renewable systems..e. During this time. 1998): 1. Sheriff. there are four major differences for diesel genset supported hybrid systems compared to “simple” systems with renewable energy technologies alone (IEA. D. the control of charge and discharge basically works as it does in systems with just one renewable energy resource. Main problems related to batteries and the charge controller in hybrid systems include temperature control. Germany. meaning the load current minus the current available from the renewable energy generators. is also to minimise costs for diesel fuel and maintenance (IEA. without increasing the overall costs significantly. in pure photovoltaic systems. 4. Freiburg. S. PV/Wind hybrid systems). A typical cycle life of hybrid systems’ battery banks consists of 2. the main objective of applying charge control is to maximise the battery’s lifetime. charge currents can be rather high. Georg Weingarten. the diesel genset runs at full loading. one needs to distinguish two different scenarios: firstly. however. There. 9 Personal Comment given by Mr. in addition to the former. This dispatch strategy is commonly quite simple: it can be determined by a low voltage point of the battery and a voltage point at which the battery is fully charged. This increases the importance of regular equalisation and makes the cycle life the main factor determining the battery lifetime. The situation. which is often difficult. 1998). the charge controller is giving the dispatch strategy. many charge controllers cannot be properly adjusted. 1998).. the loading at which to operate. sometimes it is even left to the user to switch on the genset (IEA. Pneumaticos. or to start the genset when the net load. For the aspect of charge control.. Concerning the diesel genset itself.000 cycles. on June 28th. Battery banks in hybrid systems are generally relatively smaller and cycled more than. 1998). This gives potential for more costly controllers with higher functionality. charge controllers are relatively less costly for the overall system. 2001).000 – 3.2 Technologies for Rural Energy Supply 13 For hybrid systems. 9 2. Especially if the diesel genset is oversized. at Intersolar-Fair. exceeds a certain threshold. making the charge control simpler. 2003.e. Since the genset is switched on in times the renewable energy resource cannot meet the demand. .. and not only that battery specifications are not always available. The fact that power is available on demand in diesel genset supported hybrid systems eliminates many of the vagaries associated with the fluctuating nature of renewable energy resources. F. and when to switch the genset off. is different for hybrid systems using diesel gensets as a backup. Other dispatch strategies are to turn on the genset only when the load is reasonably large and to run it at a loading to supply just enough power in order to keep the batteries from being discharged. 3. batteries are also usually the first component suffering from abuse (Turcotte. Energiebau Solarstromsysteme GmbH. using the power which is not required by the load to charge the battery bank (IEA. deciding when to turn it on. i.

2 Technologies for Rural Energy Supply

14

Inverters In cases where the power supplied by the renewable energy generator is given in DC, a DC/AC-inverter needs to be installed additionally. This is due to the fact that most appliances needing AC current are less costly than those requiring DC current. There are different inverter models available, which are not to be discussed within this work. All of these models, however, need to meet the following requirements (Kaltschmitt, M., 2001/2002): optimal adjustment to the renewable energy generator proper energetic inversion to DC current compliance with the principles of netparallel operation

Inverters for hybrid systems are nowadays still considered as problematic and are in need for further development (Turcotte, D.; Sheriff, F.; Pneumaticos, S., 2001). Common problems related to their application in hybrid systems include faults during transition and difficulties in starting the generators. Moreover, available models often loose their parameters when being reset, and some faults additionally require manual reset (Turcotte, D.; Sheriff, F.; Pneumaticos, S., 2001). Modern inverter technologies available on the market not only provide the normal functions of an inverter, but additionally integrate the charge control. These appliances allow with their integrated system management an automatic control of the energy sources, the charging state of the battery and the power demand of the loads. 2.2.4.2 Energy Management Systems Energy Management Systems (EMS) are a modern possibility to improve supply security of hybrid or other systems applying renewable energy resources. It serves the function of the charge controller in a more flexible way, while at the same time serving additional functions. An EMS anticipates expected loads and prioritises them, co-ordinates the application of the different generators and optimises the exploitation of the renewable energy resource, and decreases the maintenance requirements by optimising the operation of the batteries (Benz, J., 2003).

2.3

Grid-based Electrification

Finally, the centralised approach of extending the conventional grid to rural areas is the last option to be described here. Grid-based electricity is delivered to consumers at three different levels (Baur, J., 2000): 1. The electric current produced in conventional central power plants is transported via high-voltage transmission lines at a voltage of 60 – 200 kilovolt over long distances; 2. On a regional level, the electric current is distributed to the villages via mean-voltage grid, normally at a voltage of 10 - 22 kilovolt. 3. Inside the village, the electric current is transformed to the voltage level of 110 – 220/230 volt of the households.

2 Technologies for Rural Energy Supply

15

Compared to European standards, the conventional grid in developing countries lacks redundancy. This leads to lower costs on the one hand, but to less reliability on the other hand as well. Grid-based electrification is often highly favoured by rural population despite the problems with reliable electricity supply. However, the extension of the conventional grid is often not feasible from an economic point of view. Factors to be considered include10 distance of the village from the grid, number of households to be connected to the grid within the village, and household density in the villages, meaning the distances between the different houses.

Moreover, the fact that many developing countries are heavily dependent on fossil fuels makes grid-based rural electrification unattractive not only from an economic, but also from an environmental perspective.

10

For further reading see: (Cabraal, A.; Cosgrove-Davies, M.; Schaeffer, L., 1996) and (Baur, J., 2000).

3 Analysis of Impacts

16

3

Analysis of Impacts

Although several projects with hybrid systems for rural electrification have been carried out already, surveys investigating these systems are so far very limited. In fact, no socioeconomic survey discussing the adaptation of hybrid systems in developing countries has been conducted to date. This problem led to the idea of discussing the application of hybrid systems in developing countries not in absolute terms, but rather to compare their sustainability relative to other likely scenarios of rural electrification, which will be defined in the following section. This chapter, thus, aims to analyse the impacts of rural electrification in developing countries with hybrid systems relative to the different technology options presented above. In doing so, it is tried to find out to which degree hybrid system likely provide a sustainable option for rural electrification. The assessment of hybrid systems compared to the different other scenarios is accomplished with a set of indicators, which is developed in 3.2 and 3.3, making possible a comparison on the three dimensions of sustainability: ecological, socio-economic and economic issues.

3.1

Scope of the Analysis

For the assessment, the fictitious case of electrification of a remote village in a rural area in a developing country is discussed. It is assumed that this village is electrified with different scenarios of rural electrification, and their impacts on the three dimensions of sustainability are analysed relative to each other. Table 3.1 gives and overview on the chosen scenarios. Table 3.1 Scenarios and Technologies for Rural Electrification
No. Scenario Technologies PV-Diesel 1 Decentralised Rural Electrification with Hybrid Systems Wind-Diesel PV-Wind 2 3 4 Decentralised Rural Electrification with Diesel Gensets Decentralised Rural Electrification with Renewable Energies Centralised Rural Electrification by Grid Extension Diesel Gensets SHS Biogas Country dependent

3.1.1 Scenario Definitions This section outlines the underlying assumptions for the different scenarios for rural electrification, as they will be used for the assessment in the following. Scenario 1: Hybrid Systems The analysis of the different hybrid systems is here restricted to those which have been applied already in developing countries, namely the combinations PV/Diesel, Wind/Diesel and PV/Wind. The reason to leave out potential other technologies, as they were presented in

if necessary. since it is seen as inappropriate for being discussed here. Where appropriate. Scenario 3: Renewable Energies For electrification of rural villages with renewable energies. These projects took place in Inner Mongolia and Indonesia. . It is obvious that in practical cases. the comparison of non-electrified areas with the electrification by different technologies seems to be inadequate in technical terms anyway. Since SHS are not used for productive purposes. but usually for household electrification only. two typical options are investigated here in comparison to hybrid systems: SHS and biogas systems. which more detailed information could be obtained for. it is here often referred to experiences of two projects on rural electrification with hybrid systems. the electrification of non-electrified areas has been regarded as essential to economic and social development during the Earth Summit on Sustainable Development in Johannesburg. However. 2002. this is accounted for here. It is assumed that the households of the considered village are electrified each with a SHS. For the assessment of hybrid systems. for the assessment of hybrid systems it is seen as important to include grid extension as well in order to accurately determine the quality of hybrid system electrification. only a more limited number of the technical options will be available. Biogas systems are investigated as village systems for electrification of the considered remote village. The hybrid systems discussed here are designed for 24-hours electrification of a remote rural village. it is supposed that natural and other conditions for the realisation of the considered technical alternatives are given. This is due to two reasons: on the one hand. meaning that a generator is applied for producing electricity. which means that ideal conditions are not assumed. Scenario 4: Grid Extension The extension of the conventional grid to remote rural areas is in most cases unlikely due to usually large distances of rural villages to the grid and the corresponding considerable investment necessary for the extension. is that this kind of assessment would be based on too many assumptions and therefore be too speculative.3 Analysis of Impacts 17 chapter 2. Scenario 2: Diesel Gensets The comparison of hybrid systems with diesel gensets is based on the assumption that the considered rural village is for this scenario supplied by a diesel-based mini-grid.3. accepting that the comparison with a hybrid village system is to some extent not accurate. operated by a private operator and being implemented privately. However. it is thought that the comparison with SHS will be supportive to identify the circumstances under which the application of hybrid systems is reasonable with regard to sustainability. not under the guidance of development cooperation organisations.2. the relevant combinations of hybrid systems are discussed as a whole. on the other hand. The different scenarios are all discussed as real application scenarios. The scenario “Rural area without electrification” is not included in the analysis. SHS are accounted here because they are applied widely nowadays. they are discussed each for themselves. It is rather a debate on principles but a question of analytical discussion. and will be presented as examples in detail in chapter 4. However.

126 kWh/a.1. the details of the calculations can be found in Annex A. The assessment of ecological issues is performed for a village with 170 households with a calculated annual peak electricity consumption of 48.664 kWh/m2/a. indicator sets have been developed and used to provide information on the state of sustainability of production processes or societies as a whole. the annual peak demand of the village was determined according to different possible village sizes. The calculation of investment and electricity generating costs for the assessment of economic sustainability is then performed for different village sizes for the same location.2 The Concept of Indicators of Sustainability Measuring the degree of sustainability obviously is a difficult task. A system trying to describe and to quantify the degree of sustainability is the concept of indicators for sustainable development. creating a transparent and simplified system to provide information on the degree of sustainability both to decision-makers and the interested public. leaving much space for discussion and interpretation. Most commonly.2 Modelling Assumptions For the assessment of parts of the ecological and economic dimension. thus. of which some of the most known on an international level have been set up by the Commission on Sustainable Development (CSD) and the Organisation for Economic Co-operation and Development (OECD). The hybrid systems are then designed accordingly to meet this demand with the ratio 4:1 in the cases of PV/Diesel and Wind/Diesel systems. 3. . and 1:2 in the case of PV/Wind systems. For the task of evaluating the sustainability of different energy technology concepts. summarising complex information and. the comparison with weather data from several other locations revealed that this location makes a generalised statement possible by offering average conditions. This electricity demand is then met with the different scenarios for rural electrification in order to comparatively assess hybrid systems. The need for such an indicator system. Source: Meteosat.11 Although this location is not situated in a developing country. Trapani/Italy was chosen as an example with moderately suited weather conditions. A number of indicator sets have been developed.3 Analysis of Impacts 18 Parts of the ecological and economic analysis in the following could not be performed in general terms and required an accurate modelling of the considered remote village and the installed hybrid systems. how- 11 Global radiation: 1. Indicators are used to give a comprehensive view on sustainability. The main assumptions are presented in the following. For the design of the hybrid systems to electrify a village in Trapani. the latter concept of indicators for societies as a whole has gained importance by understanding the global dimension of sustainability. 3. The annual consumption results from a calculated specific consumption per household and an additional 40% excess consumption for productive purposes. no approved indicator system has been developed yet. Especially.

2003) or (Nill.3 0. M. and also offering a comprehensive view on the their weak points from a perspective of sustainability. R. socio-economic and economic issues – needed to be broken down to a set of criteria describing these issues. This led to the following set of indicators: Table 3..3 Analysis of Impacts 19 ever. A.25 0. a set of indicators measuring these criteria was developed. it allows a “relative” comparison of different technologies. Friedrich. In a first step. with the indicators weighted relative to their importance for the respective dimension according to the author’s opinion.1 0.2 0. however. evaluating their current state of sustainability relative to each other.. On the other hand.4 0. Marheineke.. Voß. the results being obtained by such an indicator set can provide a data base for the evaluation of the sustainability of a society as a whole.. W. Krewitt. They do.1 0.1 0.. In a next step.1 0.2 Criteria and Indicators for the Assessment of Energy Technologies Dimension Criteria Climate Protection Ecology Resource Protection Noise Reduction Indicator Greenhouse Gas Emissions per kWh Emissions of Air Pollutants per kWh Consumption of Unlasting Resources Noise Pollution Cultural Compatibility and Acceptance SocioEconomic Issues Overall SocioEconomic Matters Degree of Supply Equity Potential for Participation and Empowerment Potential for Economic Development Individual SocioEconomic Interests Low Costs and Tariffs Economic Issues Maintenance Economic Independence Future Potential Employment Effects Impacts on Health Investment Costs per W Electricity Generating Costs per kWh Maintenance Requirements Degree of Import Dependence and Regional Self-Supply Supply Security Degree of know-how Improvement Weighting 0.05 12 Compare for example: (Aßmann. .3 0.3 0.2 0. D. provide the basis for the indicator set being developed within this work.3 Developing an Indicator Set for Energy Technologies Available indicator sets for measuring the sustainability of energy technologies have been found to be inappropriate within the framework of this work since they are commonly adapted to the conditions of industrialised rather than to those in developing countries and they include too many indicators.1 0.1 0. 12 On the one hand.. is apparent and has been highlighted in a number of studies already.1 0.3 0. 2000). 3. T. the three dimensions of sustainability – ecological.

A. where each indicator is presented and analysed for different energy technology options. gender issues are not taken into account although this issue might be important in individual cases. D. The discussion of sustainability in this chapter does not account for benefits or problems related to electrification in general. meanwhile.3 Analysis of Impacts 20 The discussion of the relevance of the different indicators to the three dimensions of sustainability is left to the sections below. The constricted number of indicators allows to give significant statements on the chosen criteria by being investigated intensively. et al.13 However.. DomDom. for example donor organisations. emphasis is given to climate and resource protection due to their high importance for environmental sustainability. is of key importance for the reliable performance of the electricity supply system and.. A. 2002). 2002) and (Barnes. Maintenance. thus. . Among these criteria.. The comparative assessment of hybrid systems with the other scenarios of rural electrification with regard to the different indicators is done with the following assessment scheme: Table 3. - In order to come to a conclusion on the performance of hybrid systems on the three dimensions of sustainability. moreover. This set of indicators tries to give a holistic picture. a detailed determination of differences can only be discussed on concrete case studies. The weighting of the indicators is explained as follows: For the ecological dimension. The extent to which technologies meet this objective should be weighted accordingly. investment costs. while this work needs to stay on a more generalised level. For the economic dimension. As an example. the indicators for economic development and employment effects are emphasised in the weighting due to the fact that economic development is one of the major objectives of rural electrification. For the socio-economic dimension.3 Performance Assessment Scheme 2 Comparatively very good performance 1 0 -1 Comparatively poor performance -2 Comparatively very poor performance Average performComparatively good ance or no statement performance possible 13 As examples: (Barkat. and the assessment of these kinds of general benefits of rural electrification has been matter of a lot of research work during the last years. aiming to analyse the three dimensions of sustainability as comprehensive as possible. weighted high as well. the criteria of low costs and tariffs as well as maintenance are seen as most important criteria because of their high influence on the success of electrification projects. the indicator of electricity generating costs is seen as being of highest importance because these costs are to be covered by the customers directly. the indicators are then summarised for each dimension individually according to their respective weight for the dimension. can be covered by other means.

3 Analysis of Impacts 21 It must be emphasised at this point that this assessment scheme only gives information on the relative sustainability of the different scenarios compared to each other. China. this electricity demand was met with the different technology scenarios. production. 3. Greenhouse Gas Emissions per kWh. CO = carbon monoxide. only the results are presented here. SO2 = sulphur oxide. Conclusions on an absolute degree of sustainability cannot be drawn from this. three country examples (Brazil. however. SO2-Equivalents aggregate different air pollutants like SO2. recycling. For the modelling in GEMIS. All of these emissions occur not only during operation of energy supply systems.de/service/gemis/.1 Climate Protection The degree of climate sustainability is here determined with two different indicators. this section presents only the assessment for hybrid systems in detail. a free download software provided by the German Öko-Institut.1 Ecological Dimension 3. dust or CO15 due to their acidification potential. For the extension of the conventional grid. are closely linked to the occurrence of acid rain and have severe impacts on human health. the main results are presented here. CH4 = methane.e. 14 15 CO2 = carbon dioxide. but during their whole life cycle including i. then. 16 Available at: http://www. Air pollutants are emitted in combustion processes as well.4 Analysis of Sustainability This section analyses hybrid systems on the three dimensions of sustainability with the help of the indicators set up above. The emission of air pollutants is here measured in SO2-Equivalents per kWh.4. They can be assessed with the help of GEMIS (Global Emission Model for Integrated Systems). N2O = nitrous oxide (laughing gas). and compares them relative to the other options for rural electrification.oeko. Annex C. CO2Equivalents aggregate the different greenhouse gas emissions as CO2. and South Africa) are chosen as representatives. NOx. All of these gases are emitted as products of combustion processes. For a better reading. The details of the modelling assumptions and a detailed discussion of the results can be found in Annex B.16 The results of this analysis. and Emissions of Air Pollutants per kWh.4. gives chapter for a justification of the results.1. . transport. shall be shown as a relative comparison rather than as in absolute figures. NOx = nitrogen oxide. Greenhouse gas (GHG) emissions are here measured in CO2-Equivalents per kWh. operation. since it is not a detailed life cycle assessment. For the relative comparison with the other scenarios. 3. CH4 or N2O14 due to their contribution to the greenhouse effect over a time frame of 100 years.

000 40.000 30.3 Analysis of Impacts 22 3.4. their performance is therefore worse. Purely renewable hybrid systems as PV/Wind are here performing even better than dieselbased systems. The GHG emissions resulting from diesel-based hybrid systems are higher due to the application of the diesel genset.000 20.000 10.000 Greenhouse Gases [kg CO2-Equivalents] 50. In comparison to purely renewable energy systems. however.1 shows the modelling results of GHG emissions attributable to the different scenarios for meeting the electricity demand of the chosen village.2 summarises the results of the analysis of GHG emissions on the basis of the comparative assessment scheme. Figure 3.1. South Africa and China. diesel-based hybrid systems are advantageous.1. It shows that hybrid systems can be assessed as being supportive for the objective of decreasing GHG emissions compared to conventional energy systems. PV/Wind systems result in lower greenhouse gas emissions than all other scenarios except SHS.1 Greenhouse Gas Emissions per kWh Scenario Comparison Figure 3. Compared to conventional energy systems. . The scenario of grid extension is described with the chosen countries Brazil. 60. which similar greenhouse gas emissions can be attributed to.1 GEMIS Results: Greenhouse Gas Emissions The comparison of GHG emissions per kWh shows that especially PV/Wind hybrid systems are highly preferential.000 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Af rica Figure 3.

1. While Brazil applies mainly hydroelectric power and therefore hardly has significant emissions of air pollutants. 800 Air Pollutants [kg SO2-Equivalents] 700 600 500 400 300 200 100 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Africa Figure 3.1.3 GEMIS Results: Emissions of Air Pollutants While SHS almost do not result in any emission of air pollutants due to the absence of a combustion process. .4.3 Analysis of Impacts 23 2 1 0 PV/ Diesel -1 -2 Wind/ Diesel PV/ Wind Diesel SHS Biogas Grid Extension Figure 3. the application of diesel-based hybrid systems is associated with more emissions of air pollutants compared to the grid of Brazil. China and South Africa rely mainly on coal with the associated high SO2-emissions from sulphur bound in the coal. PV/Wind systems are advantageous in any case. Diesel-based mini-grids result in the highest amount of air pollutants due to NOx emissions in the combustion process. They are therefore strongly disadvantageous in this respect. the amount of air pollutants is considerable in the case of biogas. while they emit less air pollutants compared to the grids of China and South Africa.2 Comparative Assessment of GHG Emissions 3. The comparison with the conventional grid clearly shows a high dependence on the respective energy sources used in such grids. These emissions result mainly from sulphur bound in the substrate. The other hybrid systems suffer in their performance mainly from the emission of NOx in the combustion process of the diesel generator.2 Emissions of Air Pollutants per kWh Scenario Comparison The comparison of emissions of air pollutants again shows a preference for the PV/Wind system. Thus.

17 Source: GEMIS. . GEMIS investigates the cumulative energy demand (CED) in kWh. PV/Wind systems and SHS are evaluated to perform comparatively best.17 It is therefore a measure to describe the extent to which renewable and non-renewable energy resources are consumed in order to provide electricity. The reason to investigate the CED rather than just the consumption of non-renewable resources is that the depletion of all resources is crucial for the environmental performance of energy systems.4 Comparative Assessment of Air Pollutants Emissions 3.5. A comparatively good performance can be attributed to PV/Diesel. This shows the assessment with GEMIS in Figure 3.1. GEMIS is used as well. Wind/Diesel and biogas systems. Scenario Comparison The comparison of CED with GEMIS shows expected results: fossil fuelled scenarios involve a higher amount of non-renewable energy for the production of energy. The conventional grid is concluded to perform worst with regard to the emission of air pollutants. the availability of unlasting renewable energy resources as for example firewood is to be ensured as well. which is a measure for the whole effort on energy resources (primary energy) caused by the provision of products or services. 2 1 0 PV/ Diesel -1 -2 Wind/ Diesel PV/ Wind Diesel SHS Biogas Grid Extension Figure 3.3 Analysis of Impacts 24 For the comparative assessment. For the assessment.2 Resource Protection The degree of resource protection is here measured with the help of the indicator “Consumption of unlasting Resources”. because most developing countries apply a significant share of fossil resources for electricity generation. both during operation and for the construction of the power plant.4.

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25

250.000 200.000 CED [kWh] 150.000 100.000 50.000 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Africa Non-renew able Renew able Others

Figure 3.5 GEMIS Results: Cumulative Energy Demand of Primary Energy Thus, here again PV/Wind systems are to be distinguished from diesel-based hybrid systems. PV/Wind systems involve a similar CED as do biogas systems and slightly more than SHS, while diesel-based systems here come out worse. While in comparison to diesel gensets, all hybrid systems perform better with regard to CED, the situation is different concerning the conventional grid. Since the CED as well strongly depends from the energy mix of the respective countries, it is here decided to give preference just to PV/Wind systems and rank diesel-based hybrid systems similar to the conventional grid. Figure 3.6 summarises the results of the assessment of this indicator on the basis of the assessment scheme.
2 1 0 PV/ Diesel -1 -2 Wind/ Diesel PV/ Wind Diesel SHS Biogas Grid Extension

Figure 3.6 Comparative Assessment of Resource Consumption

3.4.1.3 Noise Reduction Noise reduction is here measured with the help of the indicator „Noise Pollution”. Noise is a ubiquitous environmental problem, being more than just disturbing. A stringent interpretation of the term “health” as given by the World Health Organisation (WHO) allows to call noise a health problem (WHO, 1948). The effects of noise on health reach from aural detriment or deterioration to extra-aural health problems or the perturbation of well-being (Helfer, M., 1998/1999).

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26

Although the absolute figure of noise pollution measured in decibel is of importance to measure the effect on human health, it is here abandoned to do so. This is due to the fact that on the one hand reliable data could not be obtained; on the other hand mitigation measures on severe noise pollution are available and applied in developing countries as well.18 Thus, this section is based on own assessment of the author, leaving out noise being generated during construction phase, as this applies to all scenarios. Assessment of Hybrid Systems PV modules do not create noise during operation. For the case of a PV/Diesel system, thus, the diesel genset is the only part generating noise during operation and through start-up and shut-down procedures. The noise originated by the diesel genset, however, can well be cushioned by building a capsule, i.e. a powerhouse, which is taken into consideration for the assessment here. Wind turbines create an additional buzzing noise by their rotating wings. This effect can be recognised as being disturbing. Moreover, the power distribution lines of the mini-grid further contribute with a buzzing noise as well. Scenario Comparison The comparison of the impacts of the different technologies shows a disadvantage of windbased hybrid systems, being due to the noise generated by the wind turbines.
2 1 0 PV/ Diesel -1 -2 Wind/ Diesel PV/ Wind Diesel SHS Biogas Grid Extension

Figure 3.7 Comparative Assessment of Noise Pollution For PV/Diesel hybrid systems, the assessment here is less negative. Still, the application of the diesel genset is disadvantageous in comparison to SHS. For the comparison with diesel gensets, hybrid systems are all seen as advantageous, because cushioning measures are usually not applied for diesel gensets in developing countries. The comparatively good performance of the extension of the conventional grid on this indicator results from the fact that electricity generation does not take place in the village itself, by this not being disturbing to its inhabitants.

18

Personal Comment given by Georg Kraft, German Bank for Reconstruction (KfW), on July 7th, 2003 in Frankfurt/Main, Germany.

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27

3.4.2 Socio-Economic Dimension 3.4.2.1 Overall Socio-Economic Matters The discussion of overall social matters, reflecting overall interests and needs for sustainable social development, is based on a number of different indicators: Cultural Compatibility and Acceptance, Degree of Supply Equity, Degree of Participation and Empowerment, and Potential for Economic Development.

3.4.2.1.1 Cultural Compatibility and Acceptance Cultural Compatibility and Acceptance can be seen as key factors for project developers in developing countries. The history of development aid projects has many examples of projects, which failed due to a lack of cultural compatibility and the corresponding lack of acceptance. This indicator, thus, tries to investigate whether major cultural obstacles exist and whether this or other factors can lead to problems with regard to acceptance. It is obvious that an assessment of cultural compatibility and acceptance in global terms can just be rather vague. Especially cultural compatibility varies strongly not only between countries, but even within different regions. However, it is tried here to assess the cultural compatibility of hybrid systems by extracting experiences obtained within projects and by referring to studies addressing this issue. For this purpose, detailed information only on two projects in Inner Mongolia and Indonesia could be reviewed, because other detailed project reports could not be obtained. Assessment of Hybrid Systems The final reports of projects applying hybrid systems for rural electrification in Inner Mongolia (GTZ, 2003) and Indonesia (Preiser, K. et al., 2000) do not indicate that cultural reservations must be anticipated. Neither is there any evidence that rural electrification through solar or wind energy would reveal any potential cultural obstacles.19 However, although cultural compatibility is likely not to be problematic, problems with the acceptance of the application of hybrid system can always arise from poor system performance.20 Commonly, rural population is familiar with good-quality energy services through information given by relatives or friends who live in grid-electrified urban areas. A system promising electrification on a 24-hours basis, but not working reliably, can soon lead to dissatisfaction. Moreover, it can be expected that in areas where renewable energies have not been applied yet, hybrid systems will be met with scepticism and caution by rural population.

19

Personal Comment given by Jörg Baur, GTZ, in Eschborn/Germany on August 14th, 2003. 20 In Subang/Indonesia, for example, it was observed that consumers were dissatisfied due to technical failures or temporary breakdowns of a PV/Diesel hybrid systems. Thus, a connection to the grid was stated to be preferential by the consumers (Preiser, K., et al., 2000).

2000). Without taking external costs into account..4. in Eschborn/Germany on August. . widely independent from national political matters. Surveys and project descriptions dealing with electrification in developing countries have been analysed. 21 22 With Jörg Baur and Roman Ritter. and both need to be taken into account here: Access to electricity services can be hampered by existing structures of political power.2. et al. but just very limited information could be obtained. 2003. This section is. Assessment of Hybrid Systems By being a decentralised system. it is assumed that the use of renewable energy technologies is a rather unknown approach for most people in rural areas. Low total costs make electricity affordable to people of almost any income class. based not only on literature.2 is based on the assumption that all systems are working well. supply equity is not a matter of course in decentralised systems and should not be overestimated. Low total costs are used as an additional criterion for the comparative assessment. K. priority is given to the matter of equal access to electricity. From a financial perspective. faces severe cultural obstacles due to religious or social Figure 3. hybrid systems are relatively expensive regarding both investment and operation costs. 2 1 0 -1 -2 Hybrid Systems Diesel Genset SHS Biogas Grid Extension Biogas. thus.22 This restricts the application of hybrid systems for the electrification of rural villages to areas with some economic and financial potential. 3. but also on own estimations by the author as well as on conversations with project co-ordinators of the GTZ.3 Analysis of Impacts 28 Scenario Comparison The comparison as being presented in Annex C. Moreover.. The assessment of cultural compatibility shows that conventional technologies as grid extension and diesel gensets are likely to result in less cultural obstacles or problems of acceptance since these technologies are wellknown to rural population.1.2 Degree of Supply Equity Supply equity basically refers to two different aspects. The Indonesian project proofs that population of a hybrid-powered village does not feel discriminated with energy distribution compared to other customers (Preiser.8 Comparative Assessment of Cultural taboos associated with dealing with Compatibility and Acceptance excrements.21 In the assessment. however. 14th. The way of implementation and existing structures of political power in the village itself can be obstacles for supply equity as well. hybrid systems offer the possibility to supply energy equally to everybody within the village. However.

2 1 0 -1 -2 Hybrid Systems Diesel Genset SHS Biogas Grid Extension Among the renewable energies. but provide electricity the whole day. which is not very surprising since the decentralised nature and the avoiding of fossil resources are major advantages of renewable energies. Both projects did apply certain consumption restrictions to the consumers. which improves understanding and empowerment.1. and that people were also willing to adapt to the restrictions that were set. as do decentralised electricity generation in general. hybrid systems are likely to improve people’s understanding in matters of energy provision. However. Electricity is also produced within the village itself. however. For a future sustainable energy system it is essential not only to provide energy in a clean and inexpensive way. but also to make customers aware of the fact that energy is limited and saving of energy therefore important. Figure 3. Biogas plants come off better than hybrid systems due to the lower total costs associated with their application. . and by which people can learn about issues of electricity production. and therefore by their nature less able to guarantee longterm equal access to electricity.3 Potential for Participation and Empowerment This section aims to discuss whether hybrid systems are likely to contribute to capacity building on matters of energy. SHS come off better concerning supply equity. is a good mixture for capacity building and empowerment. Assessment of Hybrid Systems The experiences made in the projects in Indonesia and in Inner Mongolia do not create a consistent picture of the ability of hybrid systems to improve knowledge on energy saving measures.4. The fact that hybrid systems are applied at a certain limited capacity. preference is given to household units. Another aspect to be considered is empowerment: increased understanding and participation of the interested public in a development context provides the opportunity of increasing empowerment. Both project reports.9 Comparative Assessment of Supply Equity 3. Not only that the installed capacity is limited and does not allow unlimited consumption of electricity. The provision of fossil resources as well as the conventional grid are often subject to political changes and interference.3 Analysis of Impacts 29 Scenario Comparison The analysis of supply equity shows a preference to decentralised systems in general and especially to those applying renewable energies.2. Since hybrid systems are discussed here for the application on community level. Scenario Comparison The comparison shows a great potential for hybrid systems on capacity building for energy issues. come to the conclusion that people are willing and able to learn about the system. since especially in Indonesia the capacity installed was too low to meet the demand.

Figure 3. 2000). a significant share of annual income could be attributed to electricity in Bangladesh (Barkat. the assessment would be different. However. et al. proof the necessity of careful demand forecasts as will be discussed in chapter 5.4 Potential for Economic Development The indicator “Potential for Economic Development” certainly is of major importance for the assessment of the sustainability of energy technologies. because they require a high degree of user involve.10 Comparative Assessment of Participament. moreover. A. If an adequate capacity is installed. the projects in Indonesia and Inner Mongolia did apply certain restrictions on the use of electricity. A. For hybrid systems applying tion and Empowerment biogas plants as backup.. 2002). they are normally meeting the needs.. Both projects experienced that the installed capacity of the systems soon was unable to meet the demand since people employed more and more electric appliances. but are matter of the implementation process and cannot be considered for a comparative assessment. . have greater -2 potential compared to the hybrid systems investigated here. 2002).2. but not as only necessary measure.. et al. For hybrid systems. for example. electrification allows handicraft enterprises to apply more power tools and to increase their productivity. the good quality of the produced electricity as well as the possibility to install high capacities make hybrid systems very favourable.4. Complementary measures need to be taken in order to ensure economic development.3. because once electricity is available.1.. for example. in Indonesia some customers even evaluated the quality higher than that of the conventional public grid (Preiser.. This is due to the fact that energy services are commonly seen as essential for economic development: lighting. which can be installed at and technically easily extended to comparatively high capacities. K. These examples. et al. As a result.1.2. show that electrification results in a higher number of people being employed. Under quality aspects of electricity provision. electrification should be seen as essential for economic development. and experiences made particularly in connection with SHS.. 3. however. which was not expected especially in Indonesia. allows shop owners or handicraft enterprises to extend their commercial activities to the evenings. Assessment of Hybrid Systems As already mentioned in section 3. the stability and flexibility of the system.3 Analysis of Impacts 30 People need to understand the limited nature of energy in order to properly exploit the installed capacity of hybrid systems and in order to give every user in the community the same possibility to use electricity. and people in general have more time for enhanced commercial activities during the day if they have lighting for doing their household chores in the evenings. the demand is likely to increase. even among household without access to electricity (Barkat.5. the conclusion can be drawn that they offer a good potential for economic development.4. Experiences made in Bangladesh. 2 1 0 -1 Hybrid Systems Diesel Genset SHS Biogas Grid Extension Biogas plants. they can supply electricity on a 24 hours basis.

..1 Employment Effects In order to create a sustainable energy system in developing countries. The expansion of renewable energy technologies in Germany has shown that the provision of energy services gains importance. Only fragmentary information could be obtained on employment effects attributable to the application of different energy technologies in developing countries in general. J.. because these other systems are problematic with regard to issues as reliability.D. J..2 Individual Social Interests The criterion individual social interests will be discussed with the two indicators Employment Effects. 2000). Assessment of Hybrid Systems Compared to conventional power plant technologies. service and maintenance of renewable energy systems will occur as was already experienced with SHS (Nieuwenhout. 2 1 0 -1 -2 Hybrid Systems Diesel Genset SHS Biogas Grid Extension Just the conventional grid by offering Figure 3. 2002) reveals that access to electricity results in a higher number of people employed even among non-electrified households in the village.for Economic Development cial activities on rural village level has higher potential for economic development. Demand-side-management to optimise appliances and con- 23 (Barkat. J.. continuity of electricity supply or commonly installed capacities.2. renewable energy technologies as wind energy are relatively more labour intensive (Scheelhasse.11 Comparative Assessment of Potential practically no limitations to commer. Case studies in Africa expect that the decentralised nature of manufacturing of technologies as solar energy is likely to result in wide-spread employment opportunities (Painuly.J. the effects of different technology options on employment are important. sales.2. 3.4. but are also likely to occur due to manufacturing and maintenance processes related to the application of the energy technology in the village.3 Analysis of Impacts 31 Scenario Comparison Hybrid systems show a good advantage on economic development in comparison to other decentralised rural electrification options. Haker. .23 Employment effects can result from enhanced economic activities as a result of lighting on the one hand. 3. 1999).4. et al. et al. It can generally be expected that employment opportunities in production. Fenhann. Socio-economic surveys on rural electrification in general reveal that employment effects are likely to occur and can directly be attributed to electrification. 2002)... and Impacts on Health. no studies at all were found investigating employment effects of hybrid systems explicitly. F.2. A. For this issue it was therefore tried to draw conclusions from surveys investigating the effects on employment of renewable energies in Germany. K.

however. Other sources of soot and fumes are candles and kerosene lamps. To which extent this observation might apply to developing countries as well. which reveal that rural health clinics could improve their medical services due to electrification. thus directly affecting human health (GTZ. burn biomass for cooking. cannot be quantified here. their higher potential on economic development and therefore employment opportunities than for hybrid systems is attenuated by lower potential for employment attributable to production or maintenance of the energy system.12 Comparative Assessment of Employment. There are no emissions during operation resulting from the use of the renewable energy technologies. 2003). too. 3. Critical corrosive gases emitted by diesel gensets are NOx. K. The electrification of rural health clinics is a main application for hybrid systems of smaller capacities. For the extension of the conventional grid. are seen as preferential compared to hybrid systems with regard to the fact that many system components of biogas plants can be produced inside the respective countries. Assessment of Hybrid Systems Hybrid systems emit corrosive gases during operation of the diesel genset. which makes them favourable compared to options as SHS. by this creating employment ment Effects opportunities. refrigerators can be used to store vaccines.4. by this creating more employment opportunities than in the case of hybrid systems. . Another aspect concerning human health refers to experiences with rural electrification. 1999). Due to this usually incomplete combustion process. J. The example of Inner Mongolia shows that hybrid systems indeed provide the possibility to improve the situation for rural health clinics reliably on a 24 hours basis. Systems Genset Extension which makes them favourable com-2 pared to conventional options as diesel gensets. This. fume and particles. is taken into consideration here. which are not electrified. X-ray and sonography equipment can be used for better diagnosis of illnesses.. This is mainly due to the fact 0 that renewable energies are relatively Hybrid Diesel SHS Biogas Grid -1 labour intensive on the one hand. Biogas systems. Haker.Figure 3.2 Impacts on Health The relevance of this indicator derives from the experience that people in areas. Moreover. On the other hand they have good potential for economic develop. corrosive gases are generated with negative impacts on human health.3 Analysis of Impacts 32 sumption is likely to have significant employment effects (Scheelhasse.2. Scenario Comparison The comparison of hybrid systems 2 with other electrification scenarios shows a good potential for hybrid sys1 tems..2.

Willingness-to-pay on the one hand. Investment costs must be seen as a major hurdle for the implementation of electrification projects. but also for commercial activities. and.13 Comparative Assessment of Impacts on Health 3. but also affordability of electricity services on the other hand are essential matters of investigation in the planning process of these projects. If first investment is too high and requires substantial financial expenditure. not accounting for the fact that electricity generating costs in the end might be lower. The following basic assumptions were made: . While biogas is seen as -1 Systems Genset Extension preferable due to further effects on -2 overall cleanliness.3. For the assessment of costs and tariffs. Figure 3.3 Economic Dimension 3. potential customers are likely to decide for a cheaper option. they are seen as advan0 tageous compared to diesel gensets Hybrid Diesel SHS Biogas Grid and SHS.1 Low Costs and Tariffs The question of low costs and tariffs mainly depends on three different aspects: Investment costs per W.4. Low electricity generating costs per kWh allow customers to apply more technical devices. Electricity generating costs per kWh. moreover. a cost analysis for hybrid systems was performed based on cost data obtained by project developers and system providers and for the location of Trapani/Italy. hardly result in 1 exhaust fumes. the extension of the conventional grid brings out similar health effects as do hybrid systems.4. not only for lighting purposes.3 Analysis of Impacts 33 Scenario Comparison Due to the fact that hybrid systems can 2 well provide electricity to rural health clinics. Low costs and tariffs in general are key factors for the successful realisation and sustainable operation of electrification projects.

former KfW staff member. 24 Personal Comment Mr. The electricity generating costs were calculated with the annuity method for diesel fuel prices of 0. Geis. 2003. Inverter and Charge Controller 10 years Cost data SMA KfW27 Schueco28 Own estimations GTZ 29 Own assumption For PV and Wind: (Sauer.. 2003. Annex D. different system capacities. 18th.. Maintenance and Repair: Annually 4% of total investment Interest Rate: 6% Miscellaneous Lifetime system components: PV modules 20 years. in Eschborn/Germany on August 14th. H. 18th. Tower): For Plants ≤ 10kW: Costs = 4309 × exp − 0. Assembly and Commissioning: 15% of total investment Transport: 1000 € Local grid.3 additionally gives an overview on cost estimations made by other organisations in order to make the picture as comprehensive as possible. Koerner during a telephone interview on August. the batteries are designed for a storage capacity of 2 days Inverter and Charge Controller “Sunny Island”. Wind generator 12 years. 2003. The details of the calculation can be found in Annex D.4 Main Assumptions for the Cost Analysis Type of Costs Costs/Details Specific Investment PV Modules: 400 €/kWp Specific Investment Wind Power Plants (incl. D. 26 Personal Comment Mr. G. 27 Personal Recommendation Mr. Internal Wiring: 6000 € Cabinets. Cables..63 × exp − 0. during a telephone interview on August.1 to 1 € per litre. 25 P = Installed capacity. GTZ. others: own estimation The cost analysis was performed for different village sizes of 30 to 300 households and. 2003. 2003). Puls. 2003. 22nd. 29 Personal Recommendation Jörg Baur.7 × exp − 0. Koerner during a telephone interview on August.1068 × Source Schueco24   P  25  [€/kW] kW  P   [€/kW] kW  For Plants ≥ 10 kW: Costs = 2016.007 × Diesel Genset: Costs = 345. Support: 2000 € Operating Costs Manpower. Bopp. Battery 5 years.0394 ×   Own calculation based on available cost data (see Annex D) Investment   P   [€/kW] kW  Schueco 26 Battery bank: 333 €/kWh for a 12V. . Diesel genset 10 years. 18th. 500Ah battery.5kW: 5000 € Planning. Koerner during a telephone interview on August. accordingly. 4.3 Analysis of Impacts 34 Table 3. 28 Personal Comment Mr.

Since these costs are based on data from German manufacturers. 3. This implies that PV/Wind systems are likely to be cost-competitive with the other hybrid systems only where weather conditions are favourable enough to guarantee electricity supply with smaller battery banks. which are presented in more detail in Annex D. the quality of the components and the specific characteristics of the location.5 Specific Investment Costs of Hybrid Systems System PV/Diesel Systems Wind/Diesel Systems PV/Wind Systems at 2 days battery capacity PV/Wind Systems at 1 day battery capacity Share in Electricity Generation 4:1 4:1 1:2 1:2 Range of Investment Costs [€/W] 8. they need to be taken with caution. the influence of the battery capacity on investment costs was investigated by varying the storage capacity.5 indicate that the size of the battery highly influences the specific investment costs.44 9.6 gives an overview on typical investment costs for the other scenarios of rural electrification. moreover.3. cost data was collected from various other institutions.86 – 9.1.20 8. the here obtained investment costs for hybrid systems cannot be generalised for all cases.05 – 10.18 For PV/Wind systems.5 €/W for Wind/Diesel village systems and 2.67 – 12. Scenario Comparison Table 3. This is proven by a number of examples collected from other organisations.21 €/W for PV/Wind household systems. By this it is tried to find out at which level of the different cost ranges hybrid systems are positioned. Therefore.23 – 9.03 to 4. more suitable locations with regard to weather conditions strongly influence the system design and can therefore decrease investment costs.4. These investment costs vary between 3. In the investment costs analysis. but should rather be seen as indicative. Locally produced batteries.3.8 €/W for PV/Diesel village systems.30 to 4.1 Investment Costs per W Assessment of Hybrid Systems Assessing the initial investment necessary for hybrid systems is a difficult task since it depends strongly on the chosen system configuration. The results in Table 3.00 6. charge controllers.3 Analysis of Impacts 35 For the comparison with the other electrification scenarios. the following results were obtained for the specific investment costs per W for villages with 30 to 300 households. Table 3.03 to 3. inverters or other devices may significantly reduce investment costs. . 3.

. meanwhile. L. M.. Cosgrove-Davies. Source (Kininger. the construction of power distribution lines account for 80 to 90% of the overall investment. The comparison shows that among the decentralised solutions for rural village supply – hybrid systems. The quantity depends on the distance of the village to the grid.14. Schaeffer. 2000b). Schaeffer. 1996) (ATB. M.3 Analysis of Impacts 36 Table 3.6 Investment Costs of Different Scenarios for Rural Electrification System Diesel Genset SHS Biogas Grid Extension Range of Investment Costs 0. 2002) (Cabraal.5 – 4 €/W Depending on the location. Grid extension. 2000). however. 2003) The comparison of this data with those for hybrid systems calculated here reveals the following aspects: Diesel gensets are likely to be least costly among the decentralised solutions. Figure 3.. and are therefore evaluated as comparatively very good here. diesel gensets and biogas systems .. and the density of households in the village (Cabraal. The comparison of hybrid systems with biogas systems shows that biogas is likely to be less costly as well. and: Baur.000 US$ per kilometre (ESMAP. investment costs for grid extension can therefore be evaluated as higher than for hybrid systems.5 €/W 7 – 26 US$/Wp 2.14 Comparative Assessment of Investment Costs .. 2 1 0 -1 -2 Hybrid Systems Diesel Genset SHS Biogas Grid Extension - - This leads to a comparative assessment as shown in Figure 3. 1996. F.. According to the World Bank. A.. and can be up to 20. L. CosgroveDavies. A.3 – 2. For the case of a remote village.hybrid power plants require the highest specific investment and are therefore disadvantageous. J. the investment for hybrid systems might become similar. The investment cost calculations for hybrid systems from other sources. the number of households to be connected.. by this reducing investment costs strongly since specific investment for PV modules does not decrease with higher installed capacities. hybrid systems require less specific investment due to the fact that the renewable part of the systems is not designed to meet the full electricity demand. show that for other locations and circumstances. Compared to the use of PV alone as SHS. requires high financial input for remote rural areas.

06 €/kWh lower for all village sizes at a fuel price of 0. which is mainly due to the fact that factors as the construc- .90 Number of Households Figure 3.00 0. i. This is proven by comparing the data calculated here with those of other institutions.20 1. but also in the possibility to design the battery bank smaller. They might vary strongly according to actual site conditions. does not only result in higher electricity output of the PV modules.3 Analysis of Impacts 37 3. the absolute numbers for electricity generating costs must be taken with caution. Especially in the case of household systems. The electricity generating costs of PV/Wind systems as well strongly depend on the battery size and the weather conditions.e. higher loads/larger villages give preference to Wind/Diesel systems if wind potential is sufficient.2 Electricity Generating Costs per kWh Assessment of Hybrid Systems The cost analysis of hybrid systems was performed for different village sizes as well as different fuel prices in order to determine their influence on electricity generating costs.30 1.15 Electricity Generating Costs in Comparison The analysis of electricity generating costs lead to the following main observations: The electricity generating costs of all systems decrease with higher capacities.4.50 1. Battery 1 Day Wind/Diesel: 0. The decrease in electricity generating costs for PV/Diesel systems is lower than for the other systems due to the fact that investment for PV modules does not decrease with higher capacities.40 1.70 1.1 €/l Diesel PV/Diesel: 1 €/l Diesel 30 40 50 60 70 80 90 100 120 140 160 175 225 275 Electricity Generating Costs [€/kWh] 1. the costs can be significantly lower. so that the data here shall just be seen as indicative.1 €/l Diesel Wind/Diesel: 1 €/l Diesel PV/Diesel: 0. The effect of decreasing diesel fuel prices is only moderate.3. In fact. both for PV/Diesel and Wind/Diesel systems. which is mainly due to the decline in investment costs for wind and diesel generators. the electricity generating costs are only 0.15. - - Again.3.1. and the chosen system configuration strongly influences the electricity generating costs.1 €/l compared to 1 €/l.60 1. Battery 2 Days PV/Wind. The results can be found in Figure 3.. Higher annual global radiation.80 PV/Wind. 1.10 1. which can be found in Annex D. Therefore.

3. For decentralised electrification. shows a clear disadvantage of hybrid village systems among the decentralised solutions. the comparison with hybrid village systems Figure 3. since this is left to the buyer of the systems.3.7. D.60 US$/kWh 1 US$/kWh 0. 2 The comparison with the conventional grid shows a disadvantage of hybrid systems as well. Scenario Comparison The comparison with other potential systems for rural electrification.3. 1999).20 €/kWh Country dependent Source (ESMAP.20 – 0.2 Maintenance Requirements The indicator “Maintenance Requirements” discusses requirements on maintenance structures. which can be found in Annex C. and since diesel fuel is often heavily subsidised in develop1 ing countries. 1999) (Wuppertal Institute. . because grid extension offers the least costly option for electricity generation if a medium voltage line passes the respective village nearby. this observation must not be taken for granted and can differ strongly from case to case.7 Electricity Generating Costs for Different Scenarios System Diesel Genset SHS Biogas Systems Grid Extension Specific Electricity Generating Costs 0. Once the conventional grid is extended to a rural village. Table 3. the scattered nature of these systems is generally problematic with regard to maintenance. For PV/Diesel hybrid systems. 2000a) (BMZ. the Fraunhofer-Institute states that electricity generating costs are likely not to become lower than 1. they are evaluated as 0 comparatively good here. the situation can be completely different.15 – 0. Still. If compared to Generating Costs hybrid household system. The main results are presented in Table 3. 2002) The comparison shows that biogas systems are the least costly option among the decentralised systems from a point of view of electricity generating costs. et al. Diesel gensets strongly depend on the diesel fuel price.3 Analysis of Impacts 38 tion of a local mini-grid or maintenance and repair must not be accounted. SHS proHybrid Diesel SHS Biogas Grid duce electricity at lower costs than -1 Systems Genset Extension hybrid village systems due to lower -2 operational costs.03 Euro/kWh for village systems with annual consumption of less than 15.000 kWh at an interest rate of 6% (Sauer.. the resulting electricity generating costs are likely to be lower.4.16 Comparative Assessment of Electricity here is anyway critical.. However.

By investigating the degree of supply security. two important aspects of electrification are investigated in detail: on the one hand supply security refers to likeliness of system breakdowns. Pneumaticos. on August. Generally. than system breakdowns of several days can be the result. More details can be found in section 5. 2003. maintenance centres need to be erected. To make customers aware of the need for maintenance of these small components is one of the key issues to be addressed in the implementation process of hybrid electrification projects. With focus on matters of energy. Scenario Comparison The comparison of maintenance requirements with other scenarios shows that hybrid systems due to their complexity require higher attention on maintenance issues than do other systems for rural electrification. the question to be discussed here is whether a technology is able to decrease dependency of developing countries on the one hand.17 reflects that maintenance is problematic for rural electrification in general. F. GTZ. and whether the creation of economic surplus remains within the country on the other hand.3. Technicians need to be educated.. D. If this is not ensured. and Supply Security.4.. Project developers state this issue to be of major importance and very crucial from a technical point of view30: whole maintenance centres need to be erected close to the villages. . because biogas systems require regular attendance and maintenance. S. Experiences show that regular annual inspection and maintenance can reduce average fault rates of three failures per year to one failure every two years (Turcotte.17 Comparative Assessment of Maintenance Requirements The criterion of economic independence is measured with the two indicators Degree of Import Dependence and Regional Self-Supply. batteries and charge controllers. Economic dependence on industrialised countries is one of the major problems of developing countries. etc. Just biogas systems are here seen to be even more problematic.3 Analysis of Impacts 39 Assessment of Hybrid Systems Maintenance requirements for hybrid systems must be evaluated as being comparatively high. 14th. adequate supply of spare parts is essential. in Eschborn/Germany. 3. 2001). This shows that maintenance structures are very complex in the case of hybrid systems.. Sheriff. and problems with charge controller and batteries make these systems comparatively problematic with regard to maintenance. Special attention needs to be paid to the maintenance of the key components.1. which is an important economic factor since commercial activities require reliable 30 Personal Comment given by Jörg Baur. in hybrid systems. the assessment as presented in Figure 3. None of the systems is therefore assessed as comparatively very good with regard to maintenance here.3 Economic Independence 2 1 0 -1 -2 Hybrid Systems Diesel Genset SHS Biogas Grid Extension Figure 3.

Figure 3. shows that a market for renewable energies can emerge as well (GTZ. The fear is that dependency on oil imports from industrialised countries might be replaced by a dependency on imports of modern technologies for the use of non-depleting resources as solar energy. charge controllers. i. etc. . (IEA. 31 Experiences lately. Pure renewable energies.4. It was argued that necessary production facilities and experts are likely not to be available in developing countries for many years. 2000). the need for diesel fuel makes regions applying this technology dependent on fuel imports. Scenario Comparison In comparison to the other scenarios. show that developing countries very well had the ability to produce at least parts of hybrid systems.e. where renewable energies have been strongly promoted. On the other hand the importance of supply security refers to the question whether a technology has the ability to supply electricity the whole day.3 Analysis of Impacts 40 electricity output. Improvements in this respect and the development of markets for renewable technologies can be expected only over longer periods of time and often need external support. however. two different aspects need to be discussed. 1990). 3. et al. On the other hand experiences also show that quality of important system parts as batteries is likely to be low (Preiser. 2 two major groups can be distinguished: electrification scenarios de1 pendent on fossil resources are less 0 preferential from the point of view of Hybrid Diesel SHS Biogas Grid -1 Systems regional self-supply and import indeGenset Extension pendence.3. The latter question has been discussed for many years already.Supply and Import Independence sources.18 Comparative Assessment Regional Selfnologies nor reliant on fossil re. and therefore are significantly preferential to hybrid systems. wiring. 1999b).3. batteries... the question whether the other components of a hybrid system can be produced in the respective countries is of major importance for sustainability in terms of maintenance as well as further dissemination of this technology. Systems like biogas plants are neither dependent on new tech. R. 31 See for example: (Hemmers. can be preferred to hybrid systems. The example of Inner Mongolia.. On the other hand. -2 however. except diesel is produced in the country itself. On the one hand. K.1 Degree of Import Dependence and Regional Self-Supply Assessment of Hybrid Systems With regard to import dependence and regional self-supply. 2003).

2000). both nowadays being maFigure 3. This observation is mainly 1 due to the fact that hybrid systems do 0 not rely on one generator alone.. 2 3.. tribute is given to the fact that fossil resources are limited and that for future development a decrease of dependence on such resources is desirable. the likelicurity hood of complete system breakdowns is comparatively low.4 Future Potential The criterion of future potential is discussed with the indicator “Degree of know-how Improvement”. capacity building and sustainable energy development. The experience of Indonesia shows as well that if projections are not carried out closely.19 Comparative Assessment of Supply Se. Scenario Comparison Compared with other methods..4. By this. a hybrid system is still able to supply a limited amount of energy with the other components. K. The assessment here therefore reflects supply security as a main strength of hybrid systems. a PV/Diesel hybrid system in Indonesia was not working due to lightning strike (Preiser.ture technologies. As an example.2 Supply Security Assessment of Hybrid Systems Renewable energy generators as PV arrays and wind generators have a lifetime of up to 20 years and are nowadays very reliable. which cannot be influenced by project developers.4. careful projection of demand development is essential in order to enable supply security. system breakdowns can occur by incidents. leading to breakdowns and therefore decreasing supply security severely (Preiser. this section tries to identify the potential of the respective technologies by evaluating their degree of modernity and their ability to improve the people’s knowledge on energy issues.3. K. et al. With the help of demonstration projects and well-functioning rural electrification projects. Assessment of Hybrid Systems . More-1 Systems Genset Extension over. but Hybrid Diesel SHS Biogas Grid are backed up by another one.3 Analysis of Impacts 41 3. Naturally. if systems breakdowns due to failures of one of the electricity generation components occur. et al. the system is likely not to cover demand increase at a certain stage anymore. This and the fact that hybrid systems can be applied for 24-hours electrification shows that hybrid systems generally have a relatively high degree of supply security.3. The experiences with hybrid systems in Inner Mongolia and Indonesia therefore did not show major breakdowns due to system component failures. hybrid systems apply renewable -2 energy technologies as photovoltaic and wind. Firstly.3. For this reason. hybrid systems offer a high degree of supply security.. Anyhow. The relevance of future potential and know-how improvement is to be seen within the context of technology transfer. Moreover. modern and sustainable approaches for rural electrification can be promoted. 2000).

Figure 3. to which hybrid systems are likely to be a sustainable option for rural electrification. it is tried to come to a conclusion on the degree. Scenario Comparison For SHS and Biogas. hybrid systems indeed have the potential to reduce emissions of greenhouse gases and air pollutants.1 Ecological Dimension The analysis of the ecological dimension shows good potential for hybrid systems.1 Results 3.3 Analysis of Impacts 42 Hybrid systems apply modern and new technologies for rural electrification.5. Especially compared to conventional electrification solutions. tential Thus. which are based on approaches being followed in the industrialised countries as well and involve lower dependence on fossil resources.1. The three dimensions ecological. the future potential can be seen as equally high. Moreover. which was attributed to the individual indicators in Table 3.20 Comparative Assessment of Future Poments. With this. the relatively low energy consumption for the production of hybrid systems as well contributes to a good overall result on environmental sustainability compared to diesel gensets and grid extension. the comparison of the future potential clearly results in a preference for the solutions based on renewable energy resources. which certainly offer less potential for know-how improve. as was the objective in the beginning. socio-economic and economic sustainability are still discussed individually. A high degree of potential for know-how improvement and capacity building can therefore be attributed to such technologies. . since these are modern and new technologies not demanding fossil resources either. 2 1 0 Hybrid Diesel SHS Biogas Grid -1 Systems Genset Extension Diesel gensets and extension of the -2 conventional grids on the other hand are options.2 on page 19.5 Results and Discussion The result of the assessment of the indicators is now aggregated according to the weight.5. 3. 3.

. however. -1 The comparison of hybrid systems with purely renewable energy technologies as SHS and biogas. For the real application of hybrid systems. reveals a worse performance of hybrid systems. The question whether hybrid systems are more environmentally Figure 3. PV/Wind systems are the only systems being able to compete under ecological aspects and to provide an equal environmentally sound solution. and can become problematic for diesel-based hybrid systems as well. aspects of diesel storage need to be taken into account. the commonly high dependence of developing countries on fossil fuels allows assessing the environmental performance of hybrid systems as better. which needs to be assured in order to make the systems environmentally benign. 32 Note: In practical terms. Nevertheless.32 The assessment of environmental sustainability was here restricted to matters of air and noise pollution. village electrification also for productive purposes in the case of hybrid systems). The comparison here is therefore fictitious. Due to the fact that purely renewable systems do not consume fossil resources during operation. because they serve different purposes (basic household electrification in the case of SHS. if the choice is to be made between hybrid systems and other renewable energies as SHS and biogas. since hybrid systems are especially meant to replace them in rural electrification. the choice between SHS and hybrid systems will not need to be made. The comparison of hybrid systems with the extension of the conventional grid does not provide a -2 PV/ Diesel Wind/ PV/ Wind Diesel SHS Biogas Grid consistent picture at first Diesel Extension glance. Therefore. the aggregated impacts on environment investigated here are worse for diesel-based hybrid systems. especially of those applying diesel gensets for backup. other environmentally important aspects would be of importance as well and would need to be examined as well.21 Results Ecology Assessment benign than the conventional grid strongly depends on the energy mix of the respective countries. Moreover. These aspects include mainly battery recycling.3 Analysis of Impacts 43 2 1 0 This observation is not very surprising with regard to diesel gensets. since leakages in diesel tanks and the associated ground pollution are a major problem especially in dieselbased mini-grids.

.3 Economic Dimension From an economic perspective.22 Results Socio-Economic Assessment hopes connected to rural electrification.5. however. The slight comparative disadvantage of hybrid systems to grid-based electrification mainly results from the high preference rural population is likely to give to grid extension and from the high potential for economic development attributed to grid-based electrification here.23 Results Economic Assessment are in the relative assessment here not reflected accurately in absolute terms. Hybrid systems by providing high quality and reliable electrification and with the quality of electric current being comparable to the conventional grid are likely to be the best among the here investigated methods for decentralised electrification. But high investment costs.1. hybrid systems have problems in 2 competing with other decentralised systems for rural electrification. 0 which is mainly due to the high potential of hybrid systems for -1 economic development and for the creation of employment op-2 portunities. severe and Figure 3. The analysis here reveals that hybrid systems can be ranked similarly to SHS. then this applies to hybrid systems as well. -1 high electricity generating costs and the problem of high require-2 ments on maintenance are main Hybrid Diesel SHS Biogas Grid problems associated with the apSystems Genset Extension plication of hybrid systems. assesses SHS as problematic from this point of view. These problems are. the decentralised option hybrid system is certainly favourable.2 Socio-Economic Dimension The assessment of the socio2 economic effects of hybrid systems reveals a good preference 1 for hybrid systems compared to other decentralised solutions. 3. however. Regarding other matters of social sustainability as supply equity and capacity building/empowerment. These indicators have Hybrid Diesel SHS Biogas Grid Systems Gensets Extension been weighted comparatively high in the assessment scheme since the furtherance of economic development is one of the main Figure 3.1. result in the demand for high involvement of donor organisations.3 Analysis of Impacts 44 3. they do. therefore.5. If one. 1 Hybrid systems have advantages with regard to supply security 0 compared to other decentralised options. which have been facing many problems with regard to financial issues as investment and maintenance. indeed.

this main advantage also provides the ground on which to decide whether or not to apply hybrid systems. is the niche for hybrid systems. it is thought here that hybrid systems on village level should just be applied in areas where this potential. which do not have the demand for reliable and continuous electricity supply and. the analysis shows that especially the question of financial competitiveness with other decentralised options for rural electrification is a major problem. meaning the demand for electrification for productive purposes. the assessment of these impacts was done in relatively general terms and is therefore strongly related to the underlying assumptions and their subjective evaluation. From an economic perspective. 2003). From a personal point of view. being relatively expensive and sophisticated at the same time. For the real application of hybrid systems. but at least a basis of economic de- . 3. This. and the question whether positive impacts of hybrid systems on ecological and socio-economic issues trade-off this problem. It was shown that hybrid systems indeed can be a method for sustainable rural electrification with regard to ecological and socio-economic issues. does make sense at all. This assessment is. The discussion of advantages and disadvantages here has revealed that probably the most important advantage compared to other systems is that hybrid systems offer a good potential for economic development. for the electrification of individuals. in other terms.3 Analysis of Impacts 45 The comparison also revealed that hybrid systems are disadvantageous from an economic perspective to grid extension. to which degree hybrid systems are likely to provide a sustainable option for rural electrification. however. both on a household scale as well as in the here investigated village mini-grids. the question is whether the application of hybrid systems. thus. is crucial. In a way. It is rather inappropriate to apply hybrid systems in rural areas. cannot fully exploit the system. But if this is the case. to be taken with caution. In Inner Mongolia it was experienced that the diesel genset was in some cases not operated in order to decrease expenditure on diesel fuel. two different possibilities are distinguished. is at all given.5. Hybrid systems are applicable for remote rural areas. the question of ecological and socio-economic impacts will always need to be investigated individually. Nevertheless. and the resulting intermittent supply of energy was accepted (GTZ. applies to hybrid systems.2 Discussion The analysis of impacts of hybrid systems reveals that the initially raised question. and under which circumstances should they be implemented? For the answer to these questions. 1. cannot simply be answered with yes or no. decentralised systems for electrification are advantageous compared to grid extension with regard to the regional creation of value and to independence and supply security. Firstly. is the answer on the initially raised question whether hybrid systems are a sustainable solution for rural electrification? What. Hybrid systems certainly have the potential of furtherance of economic development. and the extension of the conventional grid to these areas will in practical cases not be an option for their electrification due to the high investment involved. What. then. as well. the question whether or not to apply hybrid systems depends on the respective local circumstances. However.

telecommunication devices. . If one considers economic development as a stepwise process. desalination systems. which are already developing by other means and where other conditions are favourable to allow a positive prognosis of further development. For a respective project with the objective of sustainable rural electrification. For this purpose. SHS or stand-alone wind turbines seem to offer a better suited method. are seen as less suitable for poverty alleviation for the poorest as are other systems. smaller and less sophisticated solutions as biogas. The extension of such small-scale renewable solutions to hybrid systems by applying additional diesel or other generators might then be a possibility to support the next step of development by providing 24-hours electrification. 2. The indicator set developed here and presented in section 3. It is based on a subjective and generalised assessment of the impacts of hybrid systems and therefore not universally applicable. then the application of hybrid systems might be ideally seen as the second step of development. Secondly.3 Analysis of Impacts 46 velopment already taking place should be given in order to apply and fully exploit hybrid systems. small-scale hybrid systems are well applicable to the electrification of single consumers as rural health clinics. For supporting the first step. hotels. Hybrid systems are here assessed to be more suitable for supporting development of areas. taking account of the specific conditions and circumstances. Hybrid systems. However. the sustainability of hybrid systems and other options will need to be investigated prior to the implementation process every time again individually. therefore. the advantage of high quality electrification exactly adapted to the consumer demand applies and makes hybrid systems very favourable and certainly trades off the relatively high investment costs. etc. this assessment is not to be taken for granted for any situation.3 might provide a framework for such an assessment.

4. Indonesia has long standing experiences with PV. Systems of choice are not only SHS.1. a test and certification laboratory for PV is to be erected in Jakarta. 4. . For this purpose. but no reaction resulted from that. They are based on literature review. which is switched on during evening hours and works smoothly.1 Hybrid Systems in Indonesia 4.1 Baseline Indonesia consists of around 17. and since then there is no 24-hours electricity supply. The project team felt that just protection elements were damaged.500 islands with approximately 23 million households not being connected to the conventional grid. but also with regard to PV hybrid systems. the operational experiences with PV systems were reviewed. which aims to electrify one million households with PV within 10 years. the Indonesian government has created the so-called 50 MW PV-programme in 1997.1.1. both consisting of a PV generator. the results on hybrid systems are summarised here. 4. are connected in parallel to supply electricity to a village of approximately 50 inhabitants. with special focus on SHS.2 This system was erected in 1997 and is designed to provide electricity to three settlements with altogether 350 families. et al. In order to overcome this situation. By this. PV/Diesel Hybrid System close to Subang - 4. K.. The village has an elementary school and some shopping facilities for food.2. 2000). or work in nearby urban areas. The following information were obtained at the on-site visit: Lightning stroke has damaged the plant. Inhabitants are usually farmers. drivers. a wind power plant and a diesel genset.1 PV/Wind/Diesel Hybrid System at Nusa Penida Island Two plants.. so that this could easily be repaired by a technician. Since breakdown of the system. but also a number of PV-based hybrid systems. Therefore. first pilot projects installed 85 SHS and 15 PV street lighting already in 1989 in Sukatani. the village used just the diesel genset for electrification. The inhabitants of the village reported the breakdown of the system two months before the on-site visit. which according to their opinion provided ideal electricity supply for their remote village. two existing plants were visited by the project planners.2 Project Description Within the project described in (Preiser.2.1. Despite the problems. a market for SHS has developed over recent years. hygiene and fuel. people were satisfied with the hybrid systems.4 Project Examples 47 4 Project Examples This section presents the experiences made in two projects on rural electrification with hybrid systems in Indonesia and Inner Mongolia.

However. the behaviour in using lights was similar to that in urban areas. which was created in the village before and which was in charge of the hybrid system. only one of the three settlements can use electricity. Since the fuses did not function. the installed capacity was likely to be sufficient to satisfy consumers’ needs. 33 It was assumed that due to the low income of inhabitants. respectively. a 40 kW Diesel Genset. When asked. shows that maybe not all characteristics of electricity supply and energy saving had been understood. which is due to the system’s constant operation with high loads.4 Project Examples 48 The hybrid system consists of a 7 kWp PV Generator. The organisation committee changed several times. Soon after connection. village inhabitants are not supplied with electricity for 24 hours anymore. The whole situation led to strikes and civil commotion. The first led to increased electricity generating costs. Already in the year 2000. The saved money of six million Rupees disappeared during these changes. being secured by fuses. The battery bank was after the three years of operation down to a capacity of 60% and therefore close to replacement. During night-time. for which they had to pay a connection fee of 20. Some adapters and cables of the PV-modules were also abraded and needed to be replaced. The system applies two different load limitations. Consumers could be connected to either 100W or 200W. where light is simply not switched off. The system was designed for a electricity consumption of 150 kWh/d. 33 Quoted Exchange Rate: 1 US $ = 2. just those. The organisation committee.000 Indonesian Rupees. . On the other hand. exceeding the assumed level by 88 kWh/d. they proved good understanding about the characteristics of the system and felt that the allocation of electricity was fair. this was not a problem. all system components except the battery bank were showing good overall test result. the system could soon not meet the demand anymore. and only the local technician remained in position. Test of system components proved that the system was still in good shape. which need to be connected to the grid permanently. because those devices.200 Ah and a 20 kW bi-directional Inverter. a Battery Bank of 1. People had experienced the limitations of the system and did adapt to the system’s needs by i.000 or 30. People were obviously dissatisfied with the system’s performance. could not be used anymore. because the provided amount of energy was not sufficient and the temporary disconnection was not acceptable.500 Indonesian Rupees. ironing during daytime. all settlements obtain electricity service.e. however. But when other consumers began to follow this behaviour. people began to apply more electrical devices than they were supposed to. tried to cope with increased level of demand by extending the operational hours of the diesel genset and by temporarily disconnecting parts of the village from the system. project organisation was felt to be not transparent and people would have wished to be more involved in the project during implementation. which where experienced by system failures. while the latter led to massive frustration among consumers. This. The operation of the system. In a new arrangement. while during daytime. the consumption rose to 238 kWh/d. proved that this assumption was wrong. in turn.

Prolonged power cuts due to low availability of renewable resources were accepted. for the demonstration projects. experiences showed that this assumption was wrong.or PV-Generator up to 10 kW Diesel Genset.4 Project Examples 49 4. It was observed that guiding principle for the operators was to minimise costs. 8-24 kW Criteria for the selection of projects sites were the quality of wind and solar resources.2 Project Description This project was implemented to locally produce and use wind and solar energy systems to solve problems with the availability of energy in rural areas. Hybrid Village Systems 4.1 Hybrid Systems in Inner Mongolia Applied Systems PV/Diesel Systems Wind/Diesel Systems Wind/Diesel Systems Different Hybrid Systems Place Inner Mongolia Inner Mongolia China Sea Remote Repeater Stations Battery Bank 300 W Wind-Generator PV/Wind Systems Household Systems 100 W PV-Generator Battery Bank Hybrid Village Systems Application System Configuration Wind. repeater stations and as household systems. proximity to the parent company of HDNTC. different hybrid systems were installed for village electrification. in some villages the availability . Table 4. and the purchasing power of the respective county.1 Baseline China and Inner Mongolia have been supporting the adaptation of renewable energies for rural electrification very strongly over recent years. wind farms or other prove.2. Huhhot. However.2.1 gives an overview. a distance of more than 50 km from the conventional grid.1 System Design The hybrid systems for village electrification were designed and meant for 24-hours supply. as many project examples on SHS. 2003).2. 4. Table 4. and therefore it was in many villages avoided to run the diesel genset to save the additional costs for fuel. It was assumed that the village governments/the operator were willing and able to pay for the additional diesel.2 Hybrid Systems in Inner Mongolia 4. Main focus was the transfer of technical knowledge. The project presented here was taking place from 1990 till the end of 1999. and was reviewed in 2000 (GTZ.2. Through the executing company Hua De New Technology Company (HDNTC). the actual and projected demand for electricity.

Operation and Maintenance of the Systems There was no agreed management system on the plants with the villages. it was mostly the operator being responsible for the collection of the electricity fees. Electricity is mainly used for lighting. HDNTC can be contacted via telephone and gives advises in cases of technical problems. The chosen operators were then trained by HDNTC with a Mobile Training Bus and an additional on-the-job-training during and after installation. Costs and Tariffs The village centres applied one fixed tariff. However.8 – 2. In cases of major breakdowns and need for spare parts from Germany. it seems that it was not understood that this intermittent mode of operation increased the risk of reduced technical lifetime of the battery bank. Subsidies between 60 to 80% of the initial investment were necessary. no differentiation is made according to the amount of power consumed or to the point of time of consumption. the households were connected to an electricity meter to pay the consumption-based tariff. however. Due to high investment costs for the systems. found to be sufficiently transparent and known by everybody concerned. However. Later. leaving the total management performance much to individual perceptions and attitudes of the operator. This shows clearly that the willingness to pay for the convenience of 24-hours electrification was not given. too. radios and TV. Households use typical appliances as irons. This approach is pragmatic and very user-oriented. Development of Electricity Demand The development of electricity consumption showed the expected effects. which was strongly accounted to the high acceptance of the system. financial and operational management were separated in many villages for better control of revenues. but only the costs of operation. With the installation of the hybrid systems. The operator or the village government are responsible for maintenance of the systems and all expenditures on it.000 Renminbi per household. More appropriate after-sales service is difficult. Here.4 Renminbi/kWh34 and was set by the village government after a test phase of one or two months.51 €. according to the affordability by the users and the objective of operational cost recovery. . which is in the range of 1. but problematic due to the fixed tariff. In the beginning. the village governments and the households contributed with connection fees in the range of 350-1. and 34 Quoted Exchange Rate (5/2000): 4 Renminbi = 1 DM = 0. with all consequential costs. The main problem was that a transparent and comparable bookkeeping was not introduced. progressive tariffs depending on the consumption or seasonal adjustment of tariffs to the operation costs would be helpful instead in order to reduce peak load demands.4 Project Examples 50 of electricity supply was reduced to 4 hours/day. however. The electricity fee was experienced to be paid regularly by the consumers. in most cases the villages decided to choose the actual operator of their previously used diesel genset to operate the hybrid system. since many villages are situated at far distances from the company. The tariff system was. the tariffs were found not to cover the full costs of the systems. To account this. downtimes of one or two months may occur.

which obviously stroke poor families more. electric water pumps are used for irrigation purposes. dealers were engaged as mediators for HDNTC. the same capacity as above still met the electricity demand at the time of project review. found to be very conscious on matters of energy saving by using energy saving bulbs in the beginning. Development of Electricity Demand Due to the relatively high installed capacity of the hybrid systems. Most household systems were paid by instalments. In smaller villages as Yingen (200 inhabitants). However. However. Because of this. on the other hand. For the sale of the systems. An overview on cost details can be found in Annex D.2 Hybrid Household Systems System Purchase and Costs Compared to other household systems. But once these bulbs were broken. by optimisation of supply or through control of demand by adapting regulations on consumption behaviour. however. the demand was tried to be controlled by an increase of tariffs. Sometimes. cost data and service time experienced indicate that PV/Wind systems are the most cost-effective option for decentralised household electricity supply from a point of view of electricity generating costs. Families caused almost a quarter of system breakdowns due to lack of knowledge of the system and neglecting attitudes towards maintenance.4 Project Examples 51 working equipment as drilling machines. disappointing. some families stayed without electricity after system breakdowns between two and five months. The installed 10 kW Wind/Diesel system reached its capacity limit within two years. this capacity problem was partly also met by extension of the system. Operation and Maintenance As in the case of village systems. which makes the sale a risk for HDNTC being the creditor. and boarding schools apply washing machines. This problem was met in Wuliji by extension of the system. because families in Inner Mongolia are usually herdsmen and come rarely to urban areas. they were rarely replaced due to the high purchase costs. Problems with the installed capacity were experienced in villages with a rather high number of inhabitants as Wuliji (600 inhabitants). which was technically easily feasible. Moreover. . the users were trained with the Mobile Training Bus of HDNTC. because a contract on maintenance was not concluded between HDNTC and the system owners.3 Electricity Generating Costs from Different Sources. Hospitals use X-ray equipment or sonographs. constant problem occurring was the balance of energy demand in the households: in some cases people wanted to use more appliances than the systems were designed for. local banks installed electrical warning systems. Nevertheless. 4. In other regions. Households were.2. Experiences here where.2. This training needed to be very comprehensive. The experiences showed that most people were willing to adapt to these regulation. experiences in Inner Mongolia were good in this regard. PV/Wind hybrid household systems in Inner Mongolia require high initial investment and can therefore only be afforded by higher income households. many electrical appliances can be used by the customers.

however. financing schemes need to be supportive. The installed capacity is simply to low for income generating activities. found to be high. The users apparently tolerated downtimes for repairs without being negatively influenced on their opinion on the systems. further dissemination without subsidisation and just by market mechanisms alone are stated to be feasible in the project review. the project review states scepticism due to high initial investment costs and considered subsidies to remain essential for their dissemination.4 Project Examples 52 Miscellaneous Aspects As is usually the case with SHS. China and Inner Mongolia provide relatively good conditions in this respect.3 Aspects of System Dissemination The dissemination of hybrid systems by market mechanisms alone is the ultimate goal for the sustainability of the project presented here. however.e. the users were less satisfied. mainly due to the fact that the wind generator in the PV/Wind system has shown to be a bit temperamental. The owners of household systems manage them by themselves and expand them according to their need and purchasing power. but also for scattered households who feel motivated to buy a household system. However. the circumstances with regard to i. SHS have a higher degree of acceptance. however. 4. Compared to SHS. The experiences show that the village supply systems are a persuasive demonstration for a decentralised RE supply system not only for village inhabitants. For PV/Wind household systems. direct economic benefits could also not be attributed to the application of PV/Wind household systems. Of course. and service provision to other families is not possible due to far distances between scattered households in Inner Mongolia. especially compared to diesel gensets and their high costs for operation. for the village systems.2. because a market for renewable energy devices already exists. The acceptance of the system was. .

To achieve this. which has been successfully implemented in some countries (i. The systems can be purchased either on cash or credit basis. which can be sup- . These models are presented in the following. equipment dealers usually lack financial background to offer credit to local consumers. 2001): on the one hand there is the equipment-sale approach. although it involves less investment than hybrid systems for an individual consumer. as is in the case of SHS. the provision of working capital is to be ensured. Another option for equipment sales is leasing. With the approach of selling equipment directly to individuals. for the adaptation of leasing. demand assessment and management. The approach of direct equipment sales therefore demands to make funds available to dealers in order to give them the possibility to provide credit to rural population or to create a leasing model. and capacity building will be discussed on the basis of a literature review. Leasing is an option of lower risk for the dealers since it is considerably less complicated to retrieve the equipment in case the consumers neglect their duty to pay the monthly leasing rates. nor can poor communities commonly afford hybrid systems for electrification of villages. Ideally. For hybrid systems the approach of direct equipment sales is adequate if an appropriate credit or leasing system is set up.e. and therefore it is not enough to ensure whether hybrid systems are likely to be a sustainable option for rural electrification. Investment costs are simply too high for hybrid systems. For this. thus. Moreover. ownership. the key success factors in approaching a sustainable electrification project with hybrid systems shall be discussed in this section. and direct equipment sale has proven to be difficult already in the case of SHS. Dominican Republic). Predominating option is cash sales. operation and maintenance. Direct Equipment Sales: The approach of direct equipment sales commonly refers to sale of complete systems rather than components. Sustainability needs also to be ensured by implementing the system in a way that guarantees a sustainable self-contained operation after project implementation. 5. on the other hand there is the sale of electricity service approach. 2001). but which has not yet gained major importance due to the same reason of insufficient working capital on the side of the dealers as in case of credit based purchase (ESMAP. Neither will individual poor households be able to purchase hybrid home system on cash basis. financing. funding of the dealers shall be provided by local banks.1 Organisation Decision on the distribution model The World Bank distinguishes two major distribution or sales models to be applied in developing countries (ESMAP. the responsibility for maintenance and repair is transferred to the purchaser.5 Key success factors 53 5 Key success factors Sustainability describes a dynamic process. and this is likely to remain so in the future due to the fact that credit is rarely available in rural areas and is just provided to consumers with secure occupations. important aspects of organisation.

2003). depending on the actual local situation. 2001). but also demands high involvement by donor organisations. The Global Environmental Facility (GEF) recommends to task managers of single electrification projects to experiment with both approaches individually in order to then decide for the most appropriate one (GEF. It is assumed that this approach is likely to open up and strengthen markets for decentralised electrification and therefore result in an increase of equipment sales (ESMAP. therefore requiring new political regulations (ESMAP. The alternative is then to build capacity among small local companies through business advisory services and business development. is the fact that in many countries electricity service provision is restricted to only national utility. however. the isolation of these rural areas makes them highly unattractive for substantial private participation at any level of subsidy (Tomkins. The winning company then constructs the energy provision system including distribution lines. The question for hybrid systems is which of these models to favour. the operational structure for the mini-grids to be established. Common experiences in developing countries especially with SHS show that if . questions of ownership and responsibility. Sale of Electricity Service: This approach is called “Dispersed Area Concession Model” by the World Bank and gives an electricity service company exclusive right to provide electricity service to a certain area by concession. R.). or the maximum number of concessions possible with a given grant (Tomkins. however. Problematic for the adaptation of this approach is the fact that in remote areas electricity service companies are rarely existent. In order to make electricity affordable to even the poorest among the rural population. This approach. R. In fact. Criterion for decision is either - the least grant necessary for a predetermined number of connections. 2000).. 2001). the electricity service company may receive a subsidy per user. As an option or in addition. responsibility for the power plant is important with regard to theft and vandalism. Identification of Responsibility For the electrification of a rural village.5 Key success factors 54 ported by international organisations as the World Bank. Basic problem of all projects applying renewable energies is the fact that knowledge and therefore necessary infrastructure is rarely existent in rural areas. The decision will therefore always be an individual one. In an ideal model. Users are provided electricity after paying a certain connection fee and through paying a monthly cost-based tariff. Recent approaches. General problem in the approach to provide electricity services through private companies or businessman. however. is not only comparatively time-consuming. i. credits can also be made available to consumers by such banks. both local and foreign companies are bidding for the right to provide the electricity service exclusively. are very important for the mini-grid in several respects: Firstly.e. although being probably even more financially sustainable. focus rather on supporting private providers of electricity supply and to support them with subsidies in order to ease access to electricity for poor population.

and he will by his own interest prevent the plant from theft and vandalism. The decision on the appropriate organisational model is difficult. and knowledge about maintenance is usually very limited. Sheriff. In general. D.5 Key success factors 55 the question of responsibility is not solved. take care of operation and maintenance. Then all responsibility is left to him. is rather difficult in the case of hybrid systems. It should. a clear knowledge on responsibility is essential for operation and maintenance of the system. F. Thirdly. Applying renewable energies for rural electrification is a new and innovative approach. which one to prefer in the case of hybrid systems. Clear assignment of responsibility helps a lot to avoid problems in this regard. Therefore. clear responsibility for the financial management of a plant is necessary in order to ensure the payment of bills from the customers. If private entrepreneurs are chosen for the . Pneumaticos. This approach is very common in developing countries and has a strong advantage by committing the village’s population to the project. Implementing sustainable maintenance structures Experiences not only with hybrid systems. require regular maintenance. but also with other renewable energy technologies as SHS. meaning a co-operative or a user group. S. Secondly. 2001). Not even costly and well-designed systems with high quality components can reliably provide electricity without regular and proper maintenance. The appropriate solutions will vary strongly between countries and even among different villages in the same region. the organisational structure must be set up very carefully. the second approach of creating co-operatives or user groups.. battery bank and charge controller.. cannot be given here. depending on the specific local conditions.. even slight problems with the system can become major issues and lead to complete breakdown of electricity supply. however. and ensure the payment of bills. prove the importance of sustainable maintenance structures. one has to take into account that this organisational solution brings with it higher risks for the local community. Moreover. especially with regard to leadership in order to avoid failures and severe problems. then theft and vandalism can become severe problems and compromise the whole success of the electrification project. be avoided to press from outside village inhabitants to form such organisations. - The World Bank distinguishes two different scenarios (ESMAP. Without appropriate maintenance structures. The other possibility is some form of village ownership. 2000a): Either the hybrid power plant and the corresponding mini-grid are installed by a private entrepreneur. Important issues to be addressed with regard to sustainable maintenance structures include the following: Identification and Training of Technicians for System Operation and Maintenance: The identification of technicians within the rural community is a crucial and important task in setting up a maintenance structure. since training requirements are high and complex and need high involvement especially with regard to maintenance. Moreover. because it is strongly matter of their trust among each other and of their ability to work together whether such an approach will be successful. and a general recommendation. especially the crucial parts of a hybrid system. Failure rates of these components can be reduced from three every year to one every two years if just inspection and maintenance are carried out carefully (Turcotte.

having been educated at school recently. the main objective is not to have high staff turnover on this position. which cannot be solved by the operator individually. but to involve as many interested people as possible (ESMAP. these centres should be financially self-sufficient and not need financial assistance. . if outside organisations take over responsibility for guiding the implementation process. Otherwise. a pool of potential later technical experts can be created. 2000a).. in case the chosen operator is at times not available in the future due to i. Establishment of Regional Maintenance Centres: System operators should optimally have contact persons with higher technical expertise (ESMAP. the World Bank recommends not to decide for one or two system operators in the very beginning of the project implementation process. and people with highest capability as well as respect among other village inhabitants can be chosen in the end. which have the necessary potential for economic development and are in need of such a system. Young people tend to be more open to changes and are more likely to move away to urban areas after a while (ESMAP. Maintenance centres can serve this function of guidance and technical knowledge backup. 2000a). For hybrid systems. For this. These people then can be asked in case technical problems occur. 2000a). then others can take over seamlessly. 2000b). A rule of thumb from the application of SHS in the Dominican Republic is that systems should not be further away than 50 km from a service centre (Cabraal..e. Hybrid systems are commonly implemented for electrification of remote areas. By this. A. the question of maintenance centres is difficult. Cosgrove-Davies. M. as for example in a project at Galapagos Islands. Also the engagement of young people as system operators. the approach of assigning the responsibility for the system to elder persons has proved to be recommendable.5 Key success factors 56 provision of electricity. since maintenance centres in nearby urban areas are not available and therefore need to be erected. L.. has shown to be problematic. For the application of hybrid systems it therefore seems to be essential to choose areas with a considerable number of potential communities. however. When deciding for a system operator. Schaeffer. Training of system operators is a long-term process and cannot be performed with in a couple of days. 1996). Not only has the potentially higher degree of respect and acceptance of elder people within rural communities played a role here. illness. just having graduated and looking for work. Ideally. can only be achieved if these centres serve a substantial number of villages. too (ESMAP. which are ideally situated in the vicinity of the centre. This remoteness can become a problem for hybrid systems. People need to be involved in the whole implementation process for a deeper understanding of the power plant. This. and the implementing organisation needs to monitor success after project implementation. then the choice of the technicians is of course to be left to them. Moreover.

. which involve rather high investment and electricity generating costs.5. candles. disposable batteries for radios and rechargeable car-batteries and the costs for their recharging. which option for rural electrification is to be chosen. thus. Costs for hybrid systems can be broken down to the following aspects (ESMAP. which these systems certainly offer. Prior to the decision. 2000a): capital costs for the implementation of the mini-grid project fuel costs for the diesel genset. maintenance and overhauling costs for equipment replacement Finding the most appropriate way for covering these costs is a difficult matter. not only the implementation or connection costs. failed. but also the operational costs often used to be covered to a large extent by subsidies. Correct pricing of electricity – setting up a sustainable tariff structure Correct pricing of electricity is probably the most important success factor to be described here.5 Key success factors 57 5. It is obvious that rural population is likely to be interested in electrification and. Affordability of electrical appliances and electricity services is difficult to determine and closely linked to energy demand assessment. Investigating both willingness.and Ability-to-pay for the electricity service of rural population Investigating the consumer’s willingness-to-pay is one of the key issues to be determined prior to any electrification project. as is described in section 5. if applied costs for operation. it needs to be found out whether the demand for 24-hours electrification as can be provided by hybrid systems is given and whether the economic potential. 2001). It is to be found out how much the potential consumers are willing to invest to get access to and to pay for the provision of electricity services in order to determine the investment and operation costs. pure investigation of consumer’s willingness-to-pay has been found to be shortsighted. Otherwise it was experienced that consumers op- 35 Examples can be found at the World Bank (ESMAP. But whether people can actually afford electrification is a different question of equal importance and cannot be answered by simple investigation of willingness-topay. In areas where steady income is not guaranteed.4).35 However. Based on the objective to provide electricity to even the poorest among the poor. Common approaches usually investigate the current expenditure of rural households on kerosene. which are likely to be covered by consumers themselves. As a rule of thumb. however. 2000a: Annex 5. the World Bank estimates that about 15 percent of the disposable income is usually spent on all such energy services (ESMAP. Operational costs should be covered by consumers themselves from the beginning. willing to pay for it.and ability-to-pay is of major importance especially in the case of hybrid systems. the effects of this fact on affordability are to be taken into account. This approach.2 Financing Willingness. warrants the higher financial burden for the consumer. Investigating the consumer’s willingness-to-pay is commonly done on the basis of questionnaires.

It is therefore widely agreed nowadays that grants and subsidies should only be given on implementation costs. in order not to undermine the other users’ paying morality. 2003. and therefore it might come out that wealthier households consume that much that minigrids with limited capacity are overloaded. In summary. This tariff allows appropriate charging according to the real individual consumption by applying an energy meter. which often led to financial difficulties and even to failures of electrification projects. Dubois. In order to avoid problems associated with meter reading. R. Different approaches exist. Energy-based tariffs: The approach of applying energy-based tariffs is probably the most equitable one. However. which needs to be applied to any decentralised rural electrification project. Renewable energy devices. Moreover. However. a new approach applies prepayment meters and is usually called “Fee-for-service”. need to be paid off. Finally.. energy meters require considerable additional investment and are therefore not suitable in small-sized mini-grids with small numbers of consumers. a more constant flow of operational income can be expected. 7th. The latter subsidy on connection costs is proposed just to be partial by the World Bank (Tomkins. 2000a) and KfW36 both strongly recommend: those who do not pay their monthly bills should be consequently disconnected from electricity supply. less welleducated consumers might have difficulties in understanding the meter and how to read it.L.5 Key success factors 58 posed to later tariff increases to fully cover operational costs themselves. and a contribution to connection costs for households can be justified as well. et al. With fee-for-service. resulting in unexpected high bills. 2000a) is presented in the following.. which makes it an additional test of user’s demand and preferences concerning electrification. the use of power during offpeak times is encouraged additionally. For electrification projects applying renewable energies. Moreover. discourage investment. billing and money collecting. as World Bank (ESMAP. the emphasis on poverty alleviation by subsidising can restrict sustainable market expansion. and hamper business development as was experienced in China (Wallace. If time-of-day meters are applied. KfW staff member. 36 Personal Comment given by Mr. 2003).. whether money is available at that time or not. thus awarding energy-saving consumer behaviour through lower energy bills. however. on July. and each of them can be applied successfully depending on the specific circumstances. 1998). fee-for-service is as well very costly with regard to equipment and support service. Common for all tariff structures. This approach uses magnetic cards or tokens. An overview about potential solutions as described by the World Bank in (ESMAP. W. however. conventional energy meters do not limit consumption. which can be bought by the consumers and with which the consumer purchases the possibility to consume a certain amount of electricity. this method is of special interest because it attenuates a disadvantage of these technologies compared to diesel gensets-based electrification: if consumers temporarily do not have money to afford electricity. Setting up a sustainable tariff structure cannot be done by following a single and proven formula for success. is one rule. with diesel gensets the purchase of diesel fuel can be reduced or stopped. the option of energy-based tariffs is applied in cases where there is a reasonable number of potential consumers and where ability and willingness to pay allow the application of this rather sophisticated tariff system. .

et al.5 Key success factors 59 Power-based tariffs: This tariff-scheme is not based on metering of actual electricity consumption. an oral or written agreement with the consumer limits his consumption to a predetermined level according to his appliances. while power-based tariffs can be applied to other users.38 37 38 Personal Comment Jörg Baur. . overloading of the system can be avoided and every user gets the same possibility of access to electricity services. In the most simple variation. This approach obviously depends much on the honesty of the consumers and is disadvantageous in this respect since it does not apply control mechanisms. Energy-based tariffs using energy meters are applied for well-income consumers and businesses as restaurants. in Eschborn/Germany on August 14th. this approach generally restricts availability of electricity to consumers and. but on the maximum amount of power likely to be consumed. Source: Own illustration. as was experienced for example in Indonesia (Preiser. However.. In comparison to energy-based tariffs the power-based tariff is easier to understand for consumers and requires less effort for payment collection. which he is not allowed to exceed and for which he monthly pays a constant amount of money. Generally. leaves more potential to fraud by bypassing the limiter. K. In practice. reliability and accuracy of electrical load limiters is often poor. while the second approach of power-based tariffs is likely to be better applicable in mini-grids with a concise number of consumers and well-established social structures.1 gives an overview about the key issues addressed so far being important with regard to distribution. Roman Ritter. However. reliable load limiters are mostly less expensive than reliable energy meters.37 Figure 5. organisation and financing. 2000). Moreover.. electrification projects will most likely apply a mixture of both tariffs. furthermore. GTZ. 2003. it can be stated that the first approach of energy-based tariffs is well applicable in mini-grids of a substantial size with a considerable number of consumers. To avoid this problem. Moreover. power consumption can be limited electrically by regulating the current into the home.

Most likely approach. Other important aspects on capacity building are to be discussed in the following. thus needing subsidies. Figure 5. . thus subsidies necessary. In order to exploit the full potential a hybrid system offers.1 Hybrid Village Systems: Distribution Steps 5.3 Capacity Building Capacity Building is a major aspect for the success of any project implemented in developing countries. Aspects as the education of technicians are part of capacity building. but have already been outlined above. education on demand-side management is advisable. Education on Demand-side management Hybrid systems are installed at certain capacities and are therefore limited. For other private providers. demands high donor involvement Public power utility is usually not interested much in decentralised rural electrification due to high costs. the potential profit is too low for involvement.5 Key success factors 60 Rural Electrification with Hybrid Village Systems Sales Model Distribution Model Cash Credit Leasing Existing Utility Service Model Communitybased Provider Open-Market Provider System Owner Buyer Buyer Dealer Energy Service Company (ESCo) Operator Private Entrepreneur Village Co-operative ESCo Maintenance Operator Local Technician ESCo Energy-based Tariff Power-based Tariff Tariff Energy Meters Agreement Fee-for-Service Load Limiters Applicable for Large Mini-grids Small Mini-grids Evaluation Unlikely due to low profits.

Firstly. The issue of safety should be addressed because for many areas electricity is a new commodity. These include especially financial obligations: the understanding of the need to pay for receiving electricity is not to be taken for granted. Population in rural areas in developing countries are commonly sceptic towards unknown approaches in the first place. an example can be found at the World Bank (ESMAP. This reduces electricity consumption considerably. This agreement describes explicitly all obligations for the potential consumers.e. If other appliances are used at the same time. etc. Other issues to be addressed in consumer education include theft of power and safety.e. Education of Consumers on Obligations and Behaviour Another aspect in educating consumers deals with the obligations related to the connection to an electricity supply system. Hybrid systems strongly need accompanying with regard to economic development by teaching about important aspects of business founding. This has to be explained to consumers in order to make the project a financial success. Education on Business Planning If the potential of hybrid systems is to be fully exploited. ironing. i. Two major possibilities are worth mentioning. and to guide them in using it correctly by performing activities. Common for the use of electricity in developing countries is the occurrence of a relatively high peak demand during evening hours. the installed capacity of a hybrid system may soon be insufficient to meet the demand. This is especially important in order not to raise unreasonable expectations. through bypassing energy meters or current limiters. this question is of major importance. will not be tolerated. and therefore helps to better exploit the potential of a hybrid system. This policy is best to be established in a written manner. 2000a). The example of Inner Mongo- . then awareness rising is essential. Especially in the case of household systems. i. If consumers are not aware of it. and prefer to be convinced by being informed about the possibilities and the functioning of hybrid systems visually. Awareness Rising as a Means of Market Development The issue of awareness rising refers to making public hybrid systems as an option for rural electrification. 2000a). If markets for hybrid systems are to be developed. Additionally. during daytime. which do not necessarily have to take place in the evening. Consumers must be aware that theft of power.5 Key success factors 61 Demand-side management in the first place refers to consumption habits. and can be included in an agreement. Demand-side management also refers to the use of energy-saving appliances such as energy saving bulbs. A successful project for rural electrification with hybrid systems should prepare the ground for economic development. as setting up business plans. but also for larger systems in case of village electrification. project examples are an important aspect for the dissemination of knowledge on hybrid systems. the limitation of their electricity supply system can lead to consumer’s dissatisfaction and frustration. a policy encouraging the payment of bills by disconnecting non-paying consumers from electricity supply needs to be established. which is to be signed by the consumers. It is therefore important to make consumers aware of the limitations of the system. then rural population should not be left alone with the system. which cannot be obtained by electrification alone. when for example lights are switched on everywhere in the village. and electrical lines and appliances should be handled with caution (ESMAP.

F. especially with regard to maintenance requirements.. where project examples in rural administrative villages contributed to the dissemination of especially household systems. multiplier organisations can play an important role. 2003. Local institutions or NGOs can play an even greater role than just capacity building. Secondly. For the purpose of developing markets. But real market development can just take place through replication (Richards. oversizing of the renewable energy generator is not an option. the dissemination of hybrid systems can be promoted. the regional administration or others... By informing and training the staff of multiplier organisations as local non-governmental organisations (NGOs). Most technical problems observed with hybrid system are not result of failures of single components itself. in Eschborn/Germany. 5. The same phenomenon applies to hybrid systems for village electrification: if the neighbour village owns one and feels satisfied. 2001). Sheriff.. this issue is a major challenge.2.5 Key success factors 62 lia. he will tell this to his friends and neighbours and make them aware of the possibility to use hybrid systems for electrification. 2001): o assessment of electricity demand prior to the project o provision of credit guarantees or cash sales for group lending o independent operation of the hybrid system o financing Generally. However. Pneumaticos.4... Experts see the point of reliability as a major hurdle for the adaptation of hybrid systems in developing countries. F. the other villages are likely to get interested as well. Other aspects.. D.4 Technical Aspects Main technical aspects of hybrid systems have already been discussed in chapter 2. which can be addressed by these organisations. on August 14th. include (ESMAP. This fact increases the importance of pilot projects for awareness rising. they are rather a tool. Pneumaticos.. it can be stated that for awareness rising in developing countries the word-ofmouth propaganda is the most effective way. However. The trained staff can then multiply the obtained information by teaching the interested public about the possibilities of hybrid systems. S. 2003). Key requirement from a technical point of view is simplicity and reliability (Turcotte. Sheriff. since it increases system costs especially in the case of photovoltaic-based systems remarkably (Turcotte. since these systems are rather sophisticated. Key success factors from a technical point of view are the following: The design of hybrid systems should always seek to maximise utilisation of local resources in order to keep the use diesel fuel low. too. S. project examples should not be seen as the end of dissemination activities. D. If someone owns a hybrid household system and feels satisfied with it. proves this (GTZ. . 1999). 2001). E. et al. For hybrid systems.39 - 39 Personal Comment given by Jörg Baur. but are due to rather frequent failures of components’ integration. pilot projects indeed can contribute to the sale of the technology. GTZ.

- .4.4. meaning 24-hour power supply in the case of hybrid systems. 2000a): If the system is to be installed in a region. two different aspects are of major importance: Demand Assessment and Projections The assessments of current demand for electricity as well as projections of future growth in demand are essential. 2000a). As described in chapter 3. As the project examples in chapter 4 prove. and the corresponding financial burden in terms of the monthly bills for electricity supply cannot be overviewed by them. the optimal system performance is closely linked to an accurate demand assessment. which is lower than the system’s lifetime. but also the history of load growth can be determined and taken into consideration. the potential of hybrid systems to economic development is comparatively high. it is here referred to the Mini-Grid Design Manual published by the World Bank. The relevance results from the fact that over sizing of the hybrid system inherently increases the overall system costs. then this period has to be accounted for growth projections. For a hybrid system. which expects grid-based electrification in medium-term perspective.5 Assessment of Electricity Demand and Potential for Renewable Energies In order to guarantee optimal sizing of hybrid systems and the application of the most suitable hybrid combinations.2. However. For this reason. By doing so. but also of potential future growth is of major importance for hybrid systems. and may soon lead to dissatisfaction of consumers if future growth is not accurately forecasted in advance. making adequate load projections is frequently a very difficult task. the World Bank proposes to assess electricity demand by surveying adjoining. two different situations need to be distinguished (ESMAP.1. Similar tariffs are applied in the surveyed regions as are planned for the new project. not only the actual demand for electricity. The assessment of not only actual demand for electricity. 2000a). Demand in the surveyed region is not kept down by applying consumption restrictions due to limited installed capacity. If the system is to be installed in a region. However. 2000a). Therefore. already-electrified regions with similar characteristics (ESMAP. 5. which describes major technical aspects in detail (ESMAP. which is likely not to be connected to conventional grid during the lifetime of the system. The approach of simply asking households for their potential electricity demand is not sufficient. as the World Bank describes (ESMAP. The knowledge of so far non-electrified households on their real demand for electricity is very limited. then the growth in demand during the whole lifetime has to be accounted.5 Key success factors 63 For information on key technical issues to be considered when erecting mini-grids in developing countries in general. for appropriate comparison certain restrictions apply for the surveyed area: The surveyed area should have a similar type of electricity service. while underestimation of load demand is likely to entail frustration on poor system performance due to excessive consumption. the electricity demand is likely to increase substantially.

e. A general problem in developing countries concerning the role of government results from unrealistic promises during election campaigns. Sector reforms may be necessary. 5. and supporting institutions might need to be established. The World Bank states that no project on electrification has ever succeeded without the backing of political will (ESMAP. Foley. 2001): Defining the Role of the Government The central and local governments need to be involved from the very beginning and to demonstrate commitment to decentralised electrification. since this is traditionally the exclusive right of national or regional utility.. a rural electrification committee. D. Three key issues can be identified (ESMAP. This is essential for choosing the appropriate system design and to quantify the share of the renewable energy resource for electricity generation.5 Key success factors 64 An important role in assessing energy demand plays the population itself: involvement of rural population.6 Political Factors The political framework is a major issue for decentralised electrification as well. Especially in the case of PV/Wind hybrid systems. the potential of wind power and/or the extent of insolation need to be investigated prior to project implementation. Moreover. ideally through policy statements and direct support of respective initiatives. G. Investigation of the Potential for Hybrid Systems for Electrification In order to assess the potential for hybrid systems for electrification of a certain area. competitive. which require converse occurrence of insolation and wind power in order to produce electricity on a 24-hours basis.. and therefore it is tried here to state the main political framework conditions for decentralised hybrid system projects. This then needs to be changed in a way that allows private operators to supply electricity to regions without electricity. and with it hybrid systems. accurate assessment of these resources is important. i. legalisation of rural energy markets In many countries legislation does not allow for private operators to provide electricity services. can do much to obtain information on demand and future growth (Barnes. Elimination of Tax and Duty Barriers The introduction of renewable energy technologies in many countries faces obstacles from unfair import duties. 1998). Establishing electricity laws. Project developers report from the example of Morocco that the promise to extend the conventional grid to non-electrified areas had the ef- . subsidies on diesel fuel or kerosene need to be lowered or fully eliminated in order to decrease competitive disadvantages of renewable energy technologies. which need to be eliminated in order to make the option of renewable energy. value-added taxes or other taxes. 2001).

Decentralised electrification is often seen as a second class electrification. D. i. 28th. with hybrid systems. S. Fraunhofer ISE – Club für ländliche Elektrifizierung.. because they fear then to be ignored when the grid connection becomes possible. For the project developers it is therefore important when addressing the governments to intensively inform them about the benefits of rural electrification with decentralised systems.5 Key success factors 65 fect that decentralised solutions were not accepted among rural population.40 People rather remain without electrification for some more years than to be electrified with other systems. 2001). and general characteristics of electrification. growing demand for electricity in developing countries.. on June. Sheriff. and ongoing advances in technology (Turcotte. . Pneumaticos. 2003.e. 40 Personal Comment given by Dirk-Uwe Sauer. Main issues to be addressed include environmental concerns for fossil fuel powered sources. and grid connection is preferred strongly. at Intersolar Fair in Freiburg/Germany. F..

The extension of the conventional grid is often economically not feasible for remote rural areas. but also from a socio-economic and economic perspective. renewable energies. main advantages include reliable and continuous energy supply and. and that expectations associated to decentralised rural electrification are likely to be met. hybrid systems are likely to be more beneficial than are other technologies. Problematic. This approach. use locally available resources and offer a high potential with regard to local independence compared to grid extension and diesel gensets. However. and have several additional benefits related to their use. was and is the intermittent supply of power due to the fluctuating nature of the resources. therefore. a good potential for economic development. which hybrid .6 Summary and Conclusions 66 6 Summary and Conclusions Rural electrification is commonly seen as essential part for the development of rural areas in developing countries. did not result in a clear yes concerning their application. on the other hand due to problems with reliability of the systems. The assessment was performed in comparative terms relative to other solutions for rural electricity supply by using an indicator set developed within this work. the application of renewable energies for rural electrification has not yet been the success story it was expected to be. Despite these numerous advantages. however. The main problem for the application of renewable energies in rural electricity supply. on the one hand by unrealistically high expectations on side of the population. are questions of financing and maintenance. socio-economic and economic issues. from a socio-economic perspective.e. however. therefore.. was to generally assess the sustainability of hybrid systems for rural electrification with regard to environmental. In many cases renewable energies have failed to meet the expectations of rural population. however. The assessment revealed that from a point of view of environmental and socio-economic sustainability. these issues are major hurdles and require attention during the planning of hybrid system projects and high donor involvement through subsidies and the development of maintenance structures. thus. however. Renewable energies are an environmental benign solution for rural electrification. is as well unfavourable not only from an environmental. and to identify key success factors to improve the sustainability of a hybrid rural electrification project. The assessment of sustainability of hybrid systems. Main strengths of hybrid systems from an environmental perspective include low emissions of greenhouse gases and air pollutants compared to conventional methods for rural electrification. address the challenge of rural electrification with decentralised energy supply systems applying renewable energies. Objective of this work. i. Common practice to meet the problem of rural electrification in developing countries is the use of diesel gensets. and is integral part especially for furtherance of economic progress. As is the case always for the application of renewable energies as PV and wind in developing countries. since they are less dependent on external interference. rural electrification is a problematic issue. This problem is recently met with the application of hybrid systems. thus. Modern approaches. since diesel gensets usually cannot evolve the full potential of electrification for rural development. which has lead to customer dissatisfaction in many cases. and can as well be undesirable from a point of view of environmental sustainability. It was argued that in order to fully exploit the potential.

the assessment of electricity demand now and projected to the future. This paper has also identified key factors to successfully apply hybrid systems in developing countries. Hybrid systems. since economic benefits not just depend on the availability of energy. for which the preconditions and circumstances allow to expect the full evolvement of the system’s potential. and the potential to meet the demand with renewable energies for an appropriate system design.6 Summary and Conclusions 67 systems certainly can offer especially with regard to economic development. meanwhile being more environmentally benign. . Despite their advantages. certain framework conditions need to be established. Although the assessment here was performed in rather global terms and although therefore in individual cases the assessment might be a different one. Main issues to be addressed include organisational issues with decision on appropriate distribution models and the implementation of sustainable maintenance schemes. capacity building as an essential condition to create the appropriate framework for economic development and for correct use of the hybrid systems. or the implementation of an appropriate tariff system. hybrid systems require a holistic approach towards electrification. however. For an analysis of respective projects. the results allow the statement that hybrid systems can be a sustainable option. Moreover. a certain economic development should already be taking place in the area to be electrified. They might therefore be applied within the context of whole electrification programmes for remote rural areas as an integral part of a set of different methods. and they might then ideally be chosen for those villages in the region. but also on other conditions favouring economic development. the indicator set developed here might provide a framework for the assessment whether environmental and socio-economic surpluses attributable to hybrid systems justify the high investment and the necessary effort in setting up maintenance structures.and ability-to-pay for electricity service. and political framework conditions and several technical aspects. Hybrid systems are here assessed to be a promising approach for decentralised rural electrification. which make them comparable to the conventional grid especially with regard to the quality of electricity supply. issues of financing as the investigation of willingness. should and cannot be seen as the ultimate solution for rural electrification in developing countries.

It is assumed that energy saving lighting is applied within the electrification project. while 90% are standard households. handicraft businesses.60 0.30 876.2 Rich Household Characteristics Equipment Number Capacity [W] Daily Hours of Operation [h/d] 3 6 2 8 Daily Electricity Consumption [kWh/d] 0.1 Calculation of Electricity Demand For the calculation. etc.. .9 Table A.Annex A: Electricity Demand and System Design 68 Annex A: Electricity Demand and System Design A.00 1168. during a telephone interview on August.40 3.3 94.12 0.02 0. schools.00 Energy Saving Lamp TV (Colour) Radio Refrigerator Total 6 1 1 1 10 100 10 300 470 In a next step. Additional electricity consumption results from commercial (shops. Moreover.8 43. the base load of the villages is calculated.) and public consumption (public lighting. The base load is of major importance for the design of the diesel genset in a hybrid system. former KfW staff member. Erich Geis. J.26 Annual Electricity Consumption [kWh/a] 43.1 Standard Household Characteristics Equipment Energy Saving Lamp TV (b/w) Radio Total Number Capacity [W] 4 1 1 10 20 10 70 Daily Hours of Operation [h/d] 3 6 2 Daily Electricity Consumption [kWh/d] 0. with village sizes from 30 to 300 households.20 Annual Electricity Consumption [kWh/a] 65. It is assumed here that (fictitious) 10% of all households in the village are rich. the peak load for different village sizes are calculated.02 2.18 0. since the diesel 41 Personal Recommendation Mr. This is accounted by adding 40% excess consumption on the consumption of the individual households.41 The figures adopted here are mainly based on data from (Baur.8 7.12 0. 22nd.70 219. health care. two different types of households with different consumption behaviour are distinguished: standard households and rich households. etc.). Table A. 2000).00 7. 2003.

0 48126.0 130.7 46.0 157.0 117.2 62.6 18401.4 54.0 160.9 Peak Load Annual [kWh/a] 8492.0 6.5 6.2 14.0 65.4 21.1 22647.2 39633.8 18.2 33.0 49.2 8.0 65. Table A.8 9908.5 225.5 45.1 174.0 95.0 55.8 73.0 3.0 60.0 17.0 35. Institut für Solare Energieversorgungstechnik (ISET).0 100.0 40. Strauß.2 70773.0 60.5 180.0 175.42 To simplify matters.3 36802.1 19816.0 80.0 67.0 135. .8 31.0 14.7 155.0 31.0 15.0 9.0 40.0 202.0 8.0 50.1 100.0 58.0 54.5 36.9 38.0 12.5 Base Load (Refrigerators) Daily [kWh/d] 7.0 38.2 20.0 225.0 19.9 135.6 22.0 120.5 56618. Table A.5 4.9 28309.5 63.0 150.3 93.5 20.8 63696.3 33971.0 5.5 9.0 70.0 45.4 31140.0 26.6 85.0 200.1 131.2 42464.0 25478.4 9.0 13.4 40.3 Peak and Base Loads for Different Village Sizes Number of Households Daily [kWh/d] 23. the load caused by the adaptation of refrigerators is defined as the base load.5 8.0 85.8 42.0 108.0 49541.5 50.3 124.0 17.3 27.8 24.0 126.6 21232.4 15.0 7.5 81.9 69.8 12739.0 140.5 7.0 48.0 85.5 5.5 24063.6 10.0 30.0 13.0 110.0 34.0 Annual [kWh/a] 2628 3066 3504 3942 4380 4818 5256 5694 6132 6570 7008 7446 7884 8322 8760 9636 10512 11388 12264 13140 14016 14892 15330 17520 19710 21900 Standard Rich Total 27.3 shows the results for different village sizes.1 45295.0 99.Annex A: Electricity Demand and System Design 69 genset should normally be designed to satisfy the base demand.4 28.8 12.7 15570.0 90.0 250. during a telephone interview on August 20th.5 193.5 90.8 42.0 22.0 170.6 116.3 58.3 11323.0 3.7 77.5 10.5 25.1 31.5 54.0 42 Personal Comment Mr.0 76.0 75.2 16985.6 16.8 108.2 14154.0 16.5 26893.0 153.5 72.0 144.6 36. 2003.0 11.0 4.

7 247. Hemmerle..3 232.25 – 0. D. 2001) Personal Recommendation Mr.0 A.2 Base Load (Refrigerators) Daily [kWh/d] 66.2 System Design The design of hybrid systems here is based on personal comments by project developers and literature review (Haselhuhn.5 270. Strauss.2 kWh/m2/d In December: 2. 2002)..9 Norm Radiation = 1..9 84928. 43 Deutsche Gesellschaft für Sonnenenergie Average Site in Trapani.3 Designed to meet the base load Wind Generator Annual Full Load Hours: 2.000 h/a Miscellaneous Energy losses due to inverter and battery: 24% (Haselhuhn.. Berger. 44 During a telephone interview on August 20th. F. the following basic assumptions are made: Table A.0 Annual [kWh/a] 24090.000 W/m2 Diesel Genset Annual operating time in Mini-Grid: 2.Annex A: Electricity Demand and System Design 70 Number of Households Daily Peak Load Annual [kWh/a] 77850.85 In Winter: 0.0 300..0 26280. good site Equals 6 h/d Own assumption.35 (Turcotte. S. Source Meteosat 2 Remarks/Source 43 During a telephone interview on August 21st. for a comparative assessment. Pneumaticos. 2003)). Sheriff. For the system design. (FHG ISE. C. Italy.. F. However. it seems sufficient.2 kWh/m2/d Temperature Correction In Summer: 0.. typically between 0. 2003)) or HOMER (Evaluation of design options. ISET44 Personal Recommendation given by Claudia Hemmerle.0 27. . 2003. R. C.5 30. Berger. 2003.664 kWh/m /a Radiation on a surface with 10° incline In June: 7.0 275. R. It is obvious that the design of the systems here is therefore rather rough and that real application of hybrid systems would require accurate system design with the help of optimisation models as for example TALCO (Technical and Least Cost Optimisation..0 Standard Rich Total [kWh/d] 213..190 h/a Efficiency: 0. F.4 Main Modelling Assumptions PV Modules Annual Global Radiation: 1.0 72. 2002) Own assumption. Hemmerle. (Homer.

the calculations lead to the following system designs for the different village sizes. 20% Diesel Genset PV/Wind Hybrid Systems Share: 2/3 Wind.5 Share of Technologies for Electricity Generation PV/Diesel Hybrid Systems Share: 80 % PV. 2003. 1/3 PV Own assumption Common design for cost optimisation Based on these assumptions. . 45 Given at Intersolar Fair in Freiburg/Germany on June 28th. Georg Weingarten. 45 demand in winter Energiebau GmbH Wind/Diesel Hybrid Systems Share: 80 % Wind. 20% Diesel Genset Remarks/Source Common design for cost optimisation PV generator is designed to meet 50% of the electricity Personal Recommendation Mr. the following share on electricity generation was attributed to the different generators: Table A.Annex A: Electricity Demand and System Design 71 For the different hybrid systems.

5 14720.2 4.9 14.1 13588.8 12456.7 9.0 7.0 Wind Capacity at 2000 h/a [kW] 3.0 19.5 7549.3 7926.2 15.7 3.9 9.9 System Design Wind/Diesel 80% Wind [kWh/a] 6794.5 5.1 11323.9 4.2 5.5 3.0 3.5 7077.0 19250.6 3.6 4246.1 System Design PV/Diesel 80% PV [kWh/a] 6794.4 Wind Capacity at 2000 h/a [kW] 4.0 10191.3 16042.Annex A: Electricity Demand and System Design 72 Total Number of Households 30 35 40 45 50 55 60 65 70 75 80 85 Diesel Capacity [kW] 1.4 2.0 6.0 19250.5 4.3 3.2 5190.7 15098.5 14720.2 8021.4 11323.7 7.3 4.2 11.3 20.8 3774.1 5661.3 9.6 6.8 5.3 11.0 System Design PV/Wind PV Capacity [kW] 2.6 9059.1 2.4 11323.0 3.8 12456.7 6605.6% Wind [kWh/a] 5661.8 7.8 18.5 10380.4 11.0 5.2 8492.9 12.6 6.0 10.2 8.2 6.6 21.3 16985.9 15853.4 8.1 14154.0 10191.9 6133.6 18118.7 33.8 5.6 12.6 18118.4 66.4 7549.8 2.8 9436.3 16985.4 13211.4 4718.3%PV [kWh/a] 2830.2 6.7 10.9 3302.6 .1 6.9 10.6 3.3 5.5 16.4 8.1 13588.4 PV Capacity [kW] 7.1 8.6 9059.7 9.5 7.9 15853.8 12267.9 4.9 6605.3 7926.7 4.

4 11.8 39633.9 Wind Capacity at 2000 h/a [kW] 11.3 30.5 33971.6 17929.8 39633.4 30196.Annex A: Electricity Demand and System Design 73 Total Number of Households 90 95 100 110 120 130 140 150 160 170 175 200 Diesel Capacity [kW] 5.4 13211.5 36.8 8.1 28309.5 12.5 24912.4 66.5 10380.8 31706.0 Wind Capacity at 2000 h/a [kW] 13.9 33.1 14154.1 21.3 16042.2 14.4 20.1 22647.3 8.2 45295.7 15098.7 24.8 26422.9 20760.0 33027.0 29441.6 7.8 28.3 27177.4 9.3%PV [kWh/a] 8492.8 8964.1 22647.3 36236.3 27177.0 6.2 43.3 23.3 36236.1 29.1 51.6 37745.1 38.1 17.6% Wind [kWh/a] 16985.2 22647.9 16.9 21.4 13.1 11323.4 18.8 33.9 14.0 System Design PV/Diesel 80% PV [kWh/a] 20382.7 14.0 38500.5 24534.5 24912.7 32084.6 10.4 17.2 10.8 31706.3 26.2 45295.9 System Design PV/Wind PV Capacity [kW] 7.3 18872.0 PV Capacity [kW] 23.2 7.8 45.4 5.7 9.8 25.6 10.8 12.8 21515.0 38500.0 29441.7 41.9 16.5 25.8 .0 13.4 14.6 19.6 9436.8 15.2 13.9 22.8 12267.8 21515.9 19.5 33971.8 18872.2 17.2 11.0 16513.2 24.7 6.3 12.8 8.0 9.5 System Design Wind/Diesel 80% Wind [kWh/a] 20382.

5 37.0 16.3 System Design Wind/Diesel 80% Wind [kWh/a] 50956.3 28309.7 67942.9 56618.9 77.0 44.3 51900.0 System Design PV/Diesel 80% PV [kWh/a] 50956.2 25950.1 23591.7 67942.8 Wind Capacity at 2000 h/a [kW] 27.Annex A: Electricity Demand and System Design 74 Total Number of Households 225 250 275 300 Diesel Capacity [kW] 13.7 33.9 26.8 62280.4 70.5 15.2 .6 56618.2 41.4 System Design PV/Wind PV Capacity [kW] 19.8 62280.0 34.6 21.0 64.1 47182.9 56618.9 31.1 66.6 Wind Capacity at 2000 h/a [kW] 33.6% Wind [kWh/a] 42464.3%PV [kWh/a] 21232.5 18.7 23.6 PV Capacity [kW] 58.1 37.

Annex B: GEMIS Scenario Calculations

75

Annex B: GEMIS Scenario Calculations
B.1 Scenario Definitions
For the comparison of the different electrification scenarios, the main requirement for adequate comparison is that in all scenarios the same amount of electricity is provided. Here, a village with 170 households is chosen, with peak electricity consumption of 48,126 kWh/a, which is to be produced by the different scenarios. SHS, however, are seen as an exception here. SHS are just used for household electrification, and since real application is to be investigated, this is accounted for here. It is assumed that every household is supplied with a 50 Wp SHS-module each, generating 80 kWh/a at the given global irradiation, efficiency and energy density. For the assessment of the impacts of conventional grid-based electrification on ecology, three commonly used developing/transition countries are chosen: Brazil for its high share of hydro power plants on electricity supply; China for its high share coal power plants on electricity supply; and South Africa as an African representative and with comparatively high share of nuclear power.

The different electricity supply systems are chosen from the database of GEMIS. An overview on system designs and main assumptions is given in the following.
Scenario 1: Hybrid systems
PV Module PV/Diesel monocrystalline PVmodule, system with aluminium-frame incl. Elevation after DIN small-scale dieselmotor for decentral electricity production, no emission control (base case) 20 9,625.2 10.2 30 1,460 10 Own assumption Source: GEMIS; for the diesel generator, no emission control is applied as worst case scenario Wind Generator Diesel Remarks/Source

Description

Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [kW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a]

80 38,500.8 43.8 10 1,664 20

Annex B: GEMIS Scenario Calculations
PV Module PV/Wind monocrystalline PVsmall-scale single module, system mit wind turbine, for good aluminium-frame incl. sites Elevation after DIN 33.3 16,042 14.8 10 1,664 20 66.7 32,084 21.1 100 2,000 12 Own estimation Wind Generator Diesel

76
Remarks/Source

Description

Source: GEMIS

Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [kW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a] Wind/Diesel

Description

small-scale dieselmoSmall-scale single tor for decentral elecwind turbine, for good tricity production, no emission control sites (base case) 80 38,500.8 25.3 100 2,000 12 20 9,625.2 10.2 30 1,460 10

Source: GEMIS; for the diesel generator, no emission control is applied as worst case scenario

Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [kW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a]

Annex B: GEMIS Scenario Calculations

77
Remarks/Source

Scenario 2: Diesel Mini-Grid
Diesel Mini-Grid

Description

small-scale dieselmotor for decentral electricity Source: GEMIS; no emission control as is production, no emission control (base case) common in developing countries

Electricity Production [kWh/a] Installed Capacity [kWp] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a] 48,126

22 30 2,190 6 Own assumption

Scenario 3: Renewable Energy
Solar Home system Remarks/Source Biogas Plant Remarks/Source Small generator for biogas from decentral Source: GEMIS; fermentation for elecCatalytic Converter tricity generation in added; Converter developing countries, meets World Bank with three-way cataEmission and Imlytic-converter for remission Standards duction of NOx/CO/NMVOC 35,058.3 170 Buildings, each one SHS

Description

Complete 50 Wp Solar Home System, incl. battery & CFL bulbs, with 100% firm power due to battery storage

Source: GEMIS

Electricity Production [kWh/a] Installed Capacity [kWp] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a]

13,600

8.5 10 1,600 20

10 27.74 4,813 10

Own estimation Source: GEMIS

Own estimation

8 10 38.250 33 6. Large hard coal power Generic nuclear power Here dealt with as biomass: mediumplant with steam tur.5 8.7 4.000 20 39.903.994.2 1.Annex B: GEMIS Scenario Calculations 78 Hydroelectric Power Plant Scenario 4: Grid-Extension Coal Power Plant Brazil In Brazil: bagasse.plant (pressurisedbine for developing water reactor.or in developing counintegrated biomass power plant Brazil tries.000 50 2. but gasification of wood.597. injected gas turbine = STIG 8.2 50 100 6.800.213.117.4 82.1 Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [MW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a] 38.506 15 Description Nuclear power plant Coal-fired steamhydro-electric power (pressurised lightturbine power plant in plant .sumed nuclear waste simple-cycle steaming tower.dam + reservoir water reactor LWR) in China. in China China. 80.1 577. no SO2.000 20 250 100 4. PWR) sized power plant with Large scale river countries.5 300 38 5.5 1. electric filter. no cool.3 4. of 5 g/MWh-el.6 Nuclear Power Plant Others Description Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [MW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a] China 3.000 50 .1 here neglected 600 38 6.000 30 950 33 6.000 30 2. includes asNOx.2 18.98 3.removal.5 0.

4 here neglected 500 38 5.000 25 920 33 7.or NOx. . With GEMIS.Annex B: GEMIS Scenario Calculations Coal Power Plant South Africa Nuclear power plant Large hard coal power Koeberg close to Cape plant with steam turTown.reMW-netto.2 Modelling Results The following section gives an overview and interpretation on the results of the GEMIS calculation for a village of 170 household. the amount of greenhouse gas emissions. bine in South Africa. cooling tower assumed nuclear waste with wet recooling.9 529. air pollutants and the cumulative energy demand (CED) were calculated. PWR with 2x 920 no SO2.1 44.997.5 5. of 5 g/MWh-el.1 0. CO2-Equivalents aggregate the different greenhouse gas emissions due to their contribution to the greenhouse effect. Greenhouse Gas Emissions The following table shows the amount of greenhouse gas emissions attributable to the different electrification scenarios.5 1.561 50 B.646.200 25 360 100 3. supplied with energy due to the different scenarios. Nuclear Power Plant Hydroelectric Power Plant Others 79 Description Electricity Production [%] Electricity Production [kWh/a] Installed Capacity [MW] Efficiency [%] Annual Operating Hours [h/a] Lifetime [a] 93. includes moval. South Africa.8 2.

52E-07 1.95 CH4 [kg] 27.24 2. For Brazil.63 2.50 0.23 234.000 Greenhouse Gases [kg CO2-Equivalents] 50.50 0.637.Annex B: GEMIS Scenario Calculations 80 Table B.1 GEMIS Results: GHG Emissions The comparison of the different scenarios clearly shows that hybrid systems result in relatively few GHG emissions.31 2. which applies 82.38 56.02 8. PV/Wind hybrid systems do not apply fossil resources during operation.09 1.43 17.969.53 54.165.879.593.11E-03 5.887.945.93 3.000 40.47E-07 8.201.533.63 CO2 [kg] 17.98E-06 8.16E-06 2.000 30.31 1.83E-07 4.38 0.815. the result .75 54.677.27 42.000 20.503. which can be explained with the high share of coal in electricity production.1 Amount of Greenhouse Gas Emissions Option [kg] PV/ Diesel Wind/ Diesel PV/ Wind Diesel SHS Biogas Brazil South Africa China CO2Equivalents [kg] 18.69 N2O [kg] 0.52 553.04 6. The comparison of hybrid systems with grid-based electrification shows expected results for South Africa and China.44E-07 1.65E-03 7.422.000 10.32 0.43 13. so that their GHG emissions are equal to those attributable to SHS and biogas.53E-06 1.707. The comparison with renewable energy technologies shows a likewise expected result: diesel based hybrid systems result in more GHG emissions than do SHS and biogas plants due to the application of the diesel generator.74E-07 These figures are illustrated by the following graphs.000 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Af rica Figure B.56 29.43 40.80E-03 4.27 3.73E-07 7.36 46.35 Perfluormethane Perfluorethane [kg] [kg] 2. The comparison with diesel genset shows the expected result: the application of hybrid systems result in less GHG emissions due to the fact that the diesel generator accounts for just 80% of the electricity production.10 1.37 34.73 11.00 3.46E-06 3. 60.7% of hydropower for electricity generation.38E-06 6.35E-06 6.57 166.071.16 12.340.568.11E-02 5.40E-07 1.05E-08 1.710.80 4.51 10.

600 Methance Emissions [kg] 500 400 300 200 100 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Africa Figure B.2 GEMIS Results: Methane Emissions CH4 emissions.Annex B: GEMIS Scenario Calculations 81 seems surprising in the first instance. . Secondly. SO2-Equivalents aggregate the different air pollutants due to their acidification potential. although from their total amount fewer than CO2 emissions. Air Pollutants The following tables show the amount of air pollutants attributable to the different electrification scenarios. the Brazilian grid results in similar GHG emissions as do PV/Diesel systems. the application of hydroelectric power plants results in a high degree of CH4 emissions as shows figure B. the diesel generator applied in the model here does not apply emission reduction measures as catalytic converters.2. This has two main reasons: Firstly. have a comparatively high greenhouse potential and therefore significantly contribute to the aggregated CO2Equivalents.

39E-04 6.13E-08 1.18E-05 3.56E-05 5.04 40.95 HCl [kg] 0.32E-06 5.79E-04 8.71 1.08 0.74 0.01 21.17 1.06 156.22 246.07 1.61 134.66E-07 These figures are illustrated with the following graphs.62E-08 1.31E-04 2.66 0.57E-04 China 5.27E-05 4.04E-04 3.01 0.74E-05 6.03 CO [kg] 51.05E-06 1.19E-09 4.94E-10 1.54 161.69E-05 9.48 43.18E-07 3.2 Air Pollutants Option PV/ Diesel Wind/ Diesel PV/ Wind Diesel SHS Biogas Brazil South Africa China 9.53E-05 8.24E-04 1.76 6.47E-05 4.71 NOx [kg] 169.83 799.04E-05 1.01 2.97 4.00 155.64E-10 2.13 35.00E-06 2.89E-06 4.86E-06 1.75E-09 6.85 297.08 0.28E-03 Wind/ Diesel 3.85 0.04 772.97E-04 8.35E-05 2.26E-07 -1.91E-06 2.89E-05 South Africa 8.65E-08 2.48E-06 -1.24E-08 Option PV/ Diesel NH3 [kg] As [kg] Cd [kg] Cr [kg] Hg [kg] Ni [kg] Pb [kg] PCDD/F [kg] 1.55E-05 1.42E-05 6.30E-06 1.12E-05 1.02 0.15E-09 -4.12 5.87E-06 1.10 1.11E-06 2.40 0.40 H2 S [kg] -1.88 3.03 3.89E-05 4.77E-10 1.62 390.56 14.49E-10 2.51 13.00 0.86 215.86 4.67E-05 1.56E-05 4.88 12.04E-07 7.03 Dust [kg] 44.46E-05 1.73E-06 5.22 32.53 116.91 0.17E-12 8.21E-06 3.49E-06 3.61 4.69 25.79 395.24E-08 1.06 186. .51E-08 1.38E-08 -1.07E-06 1.33 1.08 0.97E-05 2.15 0.16E-05 4.33E-06 2.52E-04 PV/ Wind Diesel SHS Biogas Brazil 5.04E-05 5.92E-08 6.Annex B: GEMIS Scenario Calculations 82 Table B.89E-05 6.44E-09 4.33E-05 9.76E-04 1.17E-04 3.10E-06 3.66 18.47 0.30 222.73 SO2 [kg] 53.97E-05 1.29 16.36 197.67 47.22 0.03E-04 4.45 52.23E-05 1.43E-05 1.76E-06 6.02E-05 1.14 3.42E-10 1.87E-11 SO2Equivalent [kg] 172.25 HF [kg] 0.06 168.46E-10 1.37 2.78 27.12 0.41 NMVOC [kg] 3.22 -6.35E-06 2.20 77.50 0.01 0.18E-05 1.

For a better overview on the amount of the main air pollutants SO2. the higher the share of coal in electricity production and the worse the flue gas cleaning in these countries. however. Compared to diesel gensets. the amount of air pollutants is significantly Figure B. the following figure is meant to provide an overview. The high amount of air pollutants in the biogas system here results mainly from SO2 from sulphur in the fuel. Due to fewer operational time of the diesel generator in hybrid systems. again the expected result is obtained. dust and CO. especially PV/Wind systems. applying a high share of hydroelectric power. is lower. reveals similar or less air pollutants from hybrid systems.3 GEMIS Results: Air Pollutants lower than for diesel mini-grids. The comparison with biogas systems. However. For PV/Wind systems. while the conventional grid emits mainly SO2 from coal combustion. . the amount of air pollutants in a country like Brazil. the better the comparative performance of hybrid system. NOx. In comparison with grid-based electrification. The comparison with SHS shows that diesel-based hybrid systems result in higher emissions of air pollutants. It illustrates that main pollutants in diesel systems are NOx. the total amount is similar.Annex B: GEMIS Scenario Calculations 83 800 Air Pollutants [kg SO2-Equivalents] 700 600 500 400 300 200 100 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Af rica The comparison of the different scenarios shows that hybrid systems are likely to result in few emissions of air pollutants.

6 48.1 109.369.9 19.053.681.1 10.747.3 PV/Diesel Wind/Diesel PV/Wind Diesel SHS Biogas Brazil South Africa China These figures are illustrated with the following graphs.6 129. 46 Source: GEMIS .3 59.945.602.3 0.454.4 350.3 56.0 38.2 43.085.4 45.705.6 68. The following table shows the results of the GEMIS calculations.8 13.4 Non-Renewable Resources [kWh] 62.600.032. Table B.537.0 58.645.159.6 537.015.4 123.353.0 210.799.4 54.717.975.370.0 12.7 64.4 Selected Air Pollutants Cumulative Energy Demand (CED) The Cumulative Energy Demand (CED) in kWh is a measure for the whole effort on energy resources (primary energy) for the provision of products or services.742. both during operation and for the construction of the power plant.0 60.3 Cumulative Energy Demand (Primary Energy) Option Total CED [kWh] 103.861.2 14.078.2 1.Annex B: GEMIS Scenario Calculations 800 Selected Air Pollutants [kg] 700 600 500 400 300 200 100 0 PV/ Wind/ Diesel Diesel PV/ Wind Diesel SHS Biogas Brazil South Africa China SO2 NOx Dust CO 84 Figure B.1 Renewable Resources [kWh] 39.6 8.6 958.3 82.2 129.3 39.273.0 118.0 Others [kWh] 2.012.1 180.3 209.46 It is therefore a measure to describe the extent to which renewable and non-renewable energy resources are consumed in order to provide electricity.040.

This idea is supported by figure B. For the case of PV/Wind hybrid systems.6 as well. In comparison to Biogas and the conventional grid of Brazil with a high share of hydropower. the consumption of non-renewable resources. This is to the higher energy demand for higher installed capacity in PV/Wind hybrid systems. is higher in these hybrid systems due to the use of the diesel generator. In comparison to SHS.000 plication of hybrid systems is advanta100.000 0 PV/ Wind/ PV/ Diesel SHS Biogas Brazil South China Diesel Diesel Wind Africa Non-renew able Renew able Others CED [kWh] Figure B. being most important for this assessment here.000 100.Annex B: GEMIS Scenario Calculations 85 The investigation of 250.000 CED [kWh] 200. but also a significantly higher degree of non-renewable energy consumption.6 as well. 250.000 150.6 Cumulative Energy Demand According to Resources . Just PV/Wind systems are able to compete with biogas and the grid of Brazil. hybrid systems applying diesel generators are disadvantageous.000 the diesel mini-grid and to the conven0 tional grid in counPV/ Wind/ PV/ Diesel SHS Biogas Brazil South China tries with a high Diesel Diesel Wind Africa share of coal in electricity generaFigure B. this disadvantage might well be due to the fact that larger systems of higher installed capacity are applied to provide more energy than with SHS.000 geous compared to 50.000 shows that the ap150.5 Cumulative Energy Demand (Primary Energy) tion. As is proved by figure B.000 total cumulative energy demand 200. hybrid systems are all disadvantageous.000 50. which shows not only a higher degree of renewable energy consumption by PV/Wind systems than with SHS.

with longer operation time than in diesel-based hybrid systems. but also due to start-up and shut-down procedures. by this resulting in a comparatively good assessment. Cushioning the noise of a diesel genset alone can as well be done by building a powerhouse. cannot be taken in consideration for the assessment here. which as well can be cushioned. Biogas plants for electrification create noise through the operation of the biogas-generator. power distribution lines of the mini-grid further contribute to noise generation. However. Moreover. the noise is distributed over these large distances as well.Annex C: Analysis of Impacts 86 Annex C: Analysis of Impacts C. This clearly shows that this effect is not negligible. . Therefore. which frequently occur. which could create noise. Just as for hybrid systems. Due to the fact that power transport to remote villages takes place over large distances with high and medium voltage lines. Scenario 4: Extension of the Conventional Grid The generation of electricity in centralised power plants does not result in noise in the remote villages. usually for the duration of several hours. However. Since the load is not constant during these hours. resulting in a comparatively very good evaluation. affecting more villages than the discussed single remote one. larger gensets producing more noise. the impact on noise pollution created by biogas-systems is estimated to be low. The impact on noise pollution is therefore estimated to be negligible.1 Ecology Indicator: Noise Pollution Scenario 2: Diesel Gensets Diesel genset-based mini-grids are commonly operating the generator during evening hours. For power distribution lines the same considerations apply as above. are necessary in order to provide the same amount of electricity as with hybrid systems. the generator produces noise not only through operation. resulting in a comparatively good assessment. power distribution lines cause significant noise pollution by generating a constantly buzzing noise. for the single remote village discussed here the impact on noise pollution is estimated to be low due to the fact that electricity generation does not take place in the village itself. Due to this reason the impact of diesel gensets on noise pollution is evaluated to be comparatively very poor. Scenario 3: Renewable Energy Technologies The PV modules of SHS do not generate noise during operation and do not apply power distribution lines. thus. but in reality this is not often the case and.

diesel gensets are still likely to face hardly any cultural obstacles or problems with acceptance than hybrid systems due to their high degree of publicity. which.2 Socio-Economic Issues Indicator: Cultural Compatibility and Acceptance Scenario 2: Diesel Gensets Diesel gensets are one of the most common and well-known ways to address the problem of electrification of remote areas. SHS suffer from the same problem of acceptance due to intermittent supply as do diesel gensets. can supply electricity for 24 hours. a preference towards these technologies can sometimes even be observed. no major obstacles resulting from cultural incompatibilities have been reported yet.Annex C: Analysis of Impacts 87 C. Thus. Experiences show that only the advertisement of SHS as pre-electrification before being connected to the grid brings the necessary acceptance among rural population (Sauer. but probably to a higher degree since SHS is a new technology being unknown to population. Especially the work connected to running a biogas system can be prohibited as well. 2003). Scenario 3: Renewable Energy Technologies For SHS. In an overall result. so that hybrid systems are likely to face less cultural obstacles than do SHS. is not seen as guaranteed in dealing with human and animal excrements. SHS are assessed to perform comparatively poor with regard to cultural compatibility and acceptance. The GTZ reports obstacles arising from religious and/or social taboos (GTZ. especially in winter (GTZ. the feeling of being electrified in second class manner. but also to the hard and tiring work connected to filling the tank of a generator. Biogas systems have been found to be the system probably facing most cultural obstacles. it is also reported that people are often dissatisfied with the unreliable and intermittent energy provision with diesel gensets (Prokahausli Sangsad Ltd. 2000). However. because they have relatives or friends in cities. Since word-of-mouth . open to solutions for this. 1999a). who is well aware of possibilities of grid-based electrification.. in regions where renewable energies like photovoltaic and wind have already been applied. The fact that energy provision is very limited and does not satisfy all needs and expectations. This effect is likely to be stronger than in hybrid systems. people are likely to have a high degree of confidence towards this technology. H. the use of the produced gas for the preparation of food and the use of the slurry as fertiliser is sometimes hindered on cultural grounds. and are. As a result. Most people in rural areas are familiar of the possibilities and benefits of gridbased electrification. Religious taboos are experienced to arise for example from the fact that cleanliness. 2000).. thus. can give to rural population. All in all. Furthermore. Scenario 4: Extension of the Conventional Grid The extension of the conventional grid is usually the option being preferred the most by rural population. which is valued very high in some religions. This is not only due to the high operational costs for diesel gensets. resulting in a comparatively very good performance. therefore performing comparatively very poor. if functioning well. Furthermore. However. biogas systems are estimated to be in many cases significantly less compatible to cultural issues than hybrid systems.

they can be considered as completely independent from power structures even within rural communities. Cosgrove-Davies. that investment costs for SHS are comparatively high. at Intersolar fair. attenuates this effect. preferred to remain for a couple of years without electrification in order to preserve the chances for grid extension. Once constructed. 1996). A.. However. L. the GTZ notes the possibility of a further accentuation of existing differences in income and property holdings (GTZ. SHS are independent from fuel and are not likely to become matter of political power demonstrations since they belong to the consumers themselves. SHS are significantly advantageous compared to hybrid systems and other decentralised electrification measures: because SHS provide electricity to individual households. this effect does not apply. The fact. the application of hybrid systems (and any other technology) has the potential to do so and to take account of matters of supply equity. Scenario 3: Renewable Energy Technologies SHS offer a solution for electrification being largely independent from existing power structures. hybrid systems are even more expensive.. Fraunhofer ISE – Club for Rural Electrification. Biogas systems generally seem to offer a good possibility for independent and fair power supply. the degree of cultural compatibility and acceptance of grid extension is assessed to be comparatively very good..Annex C: Analysis of Impacts 88 propaganda is a common cultural habit in developing countries. the extension of the conventional grid to remote villages is considered as “real electrification” and will most likely be welcomed by rural population. Indicator: Degree of Supply Equity Scenario 2: Diesel Gensets Diesel-based mini-grids often do already exist in developing countries. since costs for hybrid systems are high as well. either free of charge or at least cheaply. Nevertheless. Project developers even describe experiences where rural population refused to be electrified with renewable energy technologies because of their fear that the conventional grid is then likely not to be extended to their region. nevertheless. Meanwhile. being independent from fossil resources. June 28th. however.and middle-income rural families (Cabraal. SHS can be assessed to be more beneficial towards supply equity. diesel gensets are relatively expensive with regard to total costs. 2003 . so that it is decided here to assess hybrid systems and diesel gensets as equally with regard to supply equity. Comparatively high investments make this technology more affordable to well-situated families. however. From a financial perspective. Schaeffer. In this respect. 1999b). the same problem might apply as for hybrid systems that matters of political power or 47 Personal Comment given by Dirk-Uwe Sauer. thus. It is. For a biogas plant on community level. M. The World Bank states that investment costs are in the order of magnitude of a year’s income for low.47 For this reason. However. and electrification with diesel gensets has then usually not been implemented in an elaborated way. and poor farmers are likely to be coerced to deliver their manure to the landlord or more prosperous farmers.

SHS. This is not the case with diesel gensets.D. the potential for capacity building and increasing empowerment is higher for hybrid systems due to the fact that consumers in hybrid systems need to adapt to certain regulations. Scenario 3: Renewable Energy Technologies Experiences with PV systems in general and SHS in particular show that the link between energy consumption and insolation is usually understood (Nieuwenhout. This effect. This does not result in the same effect on capacity building or social empowerment than with hybrid systems. . and the responsibility for this is left to the individual consumer.. however. which is obviously due to natural limitations and fluctuations of renewable energy resources.Annex C: Analysis of Impacts 89 mismanagement of the electrification committee can result in unequal supply. The question whether or not to extend the conventional grid to certain rural areas is often a matter of political influence and preference as well. due to lower costs for biogas systems.J. and therefore the effect on capacity building is here evaluated to be higher than for hybrid systems. F. where electricity is simply not available during the day. Njaimi. and that people adapt energy consumption to seasonal patterns with regard to insolation (Hammamami. Indicator: Potential for Participation and Empowerment Scenario 2: Diesel Gensets Diesel gensets. but also needs to directly participate in the production of energy and the fertiliser. to some degree have the same problem as diesel gensets: if insolation (or diesel in the case of diesel gensets) is there. Ounalli. Therefore. This shows the great potential this technology offers towards capacity building and empowerment.. et al. but to a lesser degree since back-up with a diesel genset weakens the effect. the effect on capacity building of SHS is here evaluated to be lower. Biogas systems involve a lot of work to be done by the consumer himself. However. N. A. 1999). et al. it is decided here to assess hybrid systems as preferential to grid extension with regard to supply equity. Since grid extension to remote rural areas requires enormous investment. M. which cannot be run all day. resulting in a comparatively very good assessment. Still. From a financial perspective.. resulting in a comparatively poor performance of grid extension in this respect. where people are to understand the limited nature of energy in order to make electricity available to everybody to the same extent. Many developing countries have experienced demonstrations of political power on the issue of energy... biogas plants are seen as preferential with regard to supply equity compared to hybrid systems. electricity is available. 2000). which make decentralised rural electrification highly advantageous with regard to supply equity. The consumer should not only be directly involved in the planning processes. if not. by this offer potential for understanding of the limited nature of energy.. then no electricity can be used. but only during some hours in the evening. applies to hybrid systems as well. Scenario 4: Extension of the Conventional Grid It is a well-known fact that the conventional grid can become a matter of political power on a national level. a general statement cannot be given.

since operation costs are high.. D. SHS were found to be a tourist attraction in Nepal. The potential of SHS for economic development is therefore rated to be considerably lower than for hybrid systems. Scenario 3: Renewable Energy Technologies The potential for economic development of SHS has been matter of intensive research. A. 2000): lighting provides the possibility of extended commercial activities in the evening.. 1996). Best. SHS services are limited. Cosgrove-Davies. which was mentioned as potential for income generation. 2000). An extension of an existing system can be done by erecting new tanks and biogas generators if enough substrate is available and financial feasibility is given.. diesel gensets are comparable to grid connection. The following aspects are mentioned (Campen. and energy supply is open to any kind of use with limitation just through pricing. but there was just little evidence found for the potential of SHS to generate income (Nieuwenhout... resulting in a comparatively very poor potential of SHS for economic development. However. K. The potential for economic development of biogas systems depends on the size of the system and is therefore a matter of the pre-investment planning process. Guidi. G. one should not ignore the fact of improved yields attributable to biogas systems. M. B. offering a high degree of flexibility for the villages with effectively no technical constraints to be made on the use of appliances (ESMAP.D. Energy is not generated on site to improve people’s understanding. in some cases up to 20%. As a result of the use of the by-product. Due to the latter fact. the potential for economic development with diesel gensets is estimated to be lower than with hybrid systems. 1999b).. 2000).. et al. a biofertiliser. L. When discussing the economic development potential.. The effect is therefore evaluated to be significantly lower than for hybrid systems. resulting in the assessment of a comparatively very poor potential for participation and empowerment. et al. Experiences show that rural population reverts to existing diesel gensets in the village for productive purposes or to the use of petroleum for further lighting (Preiser.J. average increases of yields between 6 to 10%. . 2000b)..Annex C: Analysis of Impacts 90 Scenario 4: Extension of the Conventional Grid The extension of the conventional grid is not likely to improve understanding about the limited availability of electricity. Indicator: Potential for Economic Development Scenario 2: Diesel Gensets From a technical point of view. and the costs for expanding capacity are considerably high (Cabraal. An important constraint on the potential for economic development is the fact that diesel gensets are less suitable to be operated the whole day. F. have been reported (GTZ. Schaeffer. The commonly installed capacities are not sufficient to be used for productive purposes by installing electrical machines.

Direct effects on employment related to operation and maintenance of diesel gensets can be evaluated to be low. L. especially of those activities taking place in evenings since this is the time when diesel-based mini-grids likely operate. 2003). Since SHS systems just provide potential for lighting. 2000).D. it should not be overseen that for grid connection a minimum threshold level of electricity demand as well as certain load densities are essential in order to achieve economies of scale (Cabraal. For this reason.. Biogas systems provide potential for employment both in a long-term and short-term perspective. Indicator: Employment Effects Scenario 2: Diesel Gensets The use of diesel gensets for electrification is likely to result in lower employment effects as in the case of hybrid systems. Cosgrove-Davies. who are the major competitor of SHS for lighting. A.. to sell their goods (Nieuwenhout. As for all energy technologies.by the operator or family members.. Production. and related maintenance work is carried out – if at all . are likely to result in further employment effects as well. 1996).. the potential for economic development through biogas systems seems lower than with hybrid systems. while hybrid systems depend on the unlimited resources wind and/or sun. the extension of the conventional grid normally offers a maximum degree of flexibility to accommodate increasing demand without supply constraints. sales. Scenario 4: Extension of the Conventional Grid For villages. These activities are mostly carried out by family members of the operator and are often neglected (GTZ. the impact of diesel gensets on overall employment is valued to be lower than with hybrid systems. This effect. which are likely to experience a substantial load-growth after electrification. In China it was experienced that every district applying biogas erected its own enterprises for the production of the individual parts of the biogas plant (GTZ. but not for electrification of machines for handicraft businesses. 1999b). since it is limited by the availability of the substrate. employment effects by enhanced commercial activities during the evenings are likely to occur through SHS. F. however. is reduced by the fact that the application of SHS is likely to have negative influence on the possibility of kerosene dealers. However. et al. . Generally.J.. Schaeffer. Scenario 3: Renewable Energy Technologies As with diesel gensets. the potential for economic development given by the conventional grid can be considered to be higher than for hybrid systems. as outlined above. Since building material for biogas plants is less sophisticated than for example for photovoltaic modules. it is expected here that SHS are likely to result in lower employment effects than hybrid systems. the application of diesel gensets is not very labour intensive. already the construction phase is likely to encourage local manufacturing of building materials and accessories. Anyhow. The main restriction given is quite often the ability of the customers to pay for the energy service. the effect of enhanced economic activities is likely to occur. service and maintenance of PV systems. M.Annex C: Analysis of Impacts 91 However.

the impact on improved human health is lower than with hybrid systems. and biogas slurry does not attract important causes for contagious diseases as flies and other insects (GTZ. handicraft enterprises get the opportunity to use as many appliances as they need and can finance. the likelihood to create job opportunities is here estimated to be higher than for hybrid systems. further employment effects for operation and maintenance of the plants can be expected. Besides the potential general impacts of electrification on human health. 1999b). sales or maintenance of energy generating technologies. no corrosive gases are emitted. which can be attributed to electrification. Due to the fact that biogas systems are less sophisticated and that experiences proof immediate effects on employment due to their application. This leads to the estimation that no preference is made towards one of these scenarios. diesel gensets generally can be applied as well. direct employment effects are likely not to occur. Commercial activities using electricity can take place at any time of the day. families have more time during the day to follow commercial activities as farming or animal husbandry. . The extension of the conventional grid hardly gives rise to job opportunities related to production. and since household chores can be dealt with in the evenings due to lighting. Indicator: Impacts on Health Scenario 2: Diesel Gensets For the use of diesel gensets the same argument concerning corrosive gases applies as outlined for the hybrid systems. However. but do not produce electricity in the same reliable and constant manner as do hybrid systems. Thus. Scenario 4: Extension of the Conventional Grid The extension of the conventional grid is certainly the possibility offering the highest potential to create all such employment opportunities. This positive effect can be reduced if kerosene lamps and candles are applied additionally in case lighting is not sufficient. and both are evaluated to have a comparatively good effect on employment opportunities. The fermentation process inside the tank significantly reduces the initial pathogenic capacity of the animal and human excrements. SHS are usually not designed to support appliances like refrigerators or even X-ray equipment. The positive effect on human health is thus higher than with hybrid systems. Electrification of rural health clinics with SHS is unlikely. For the electrification of health clinics. the fact that grid-based electrification offers higher potential for commercial activities than hybrid systems is lowered by the lack of job opportunities related to the energy provision itself. In comparison to hybrid systems. 1999b). biogas systems have a special positive side effect by improving sanitary conditions for the plant owners or even the villages. since skilled craftsmen are needed as permanent staff for the plant (GTZ.Annex C: Analysis of Impacts 92 When applying biogas systems on a community level. Scenario 3: Renewable Energy Technologies During operation of SHS. For this reason the positive impact on human health is here considered to be lower than with hybrid systems.

the main problems of diesel gensets are rather the high operation costs and the overall low lifetime.3 Economic Issues Indicator: Investment Costs per kW Scenario 2: Diesel Gensets Diesel gensets commonly require low initial investment. But after-effects as acid rain have severe impacts on human health. F.29 €/W 5 (Wuppertal Institute.20 US$/W 5 – 20 Diesel 2. is worsened in countries where for example the share of coal for electricity generation is high. Moreover. it is decided here not to give a preference to grid extension or hybrid systems with regard to the impacts on human health and both are considered to have a comparatively good potential to improve human health situation. B.3 – 2.33 US$/W 50 Bulitai (Inner Mongolia) (GTZ.. W..Annex C: Analysis of Impacts 93 Scenario 4: Extension of the Conventional Grid The extension of the conventional grid to remote areas does not result in emissions from the electricity generating process in the village itself. J.1: Initial Investment Costs for Diesel Gensets System Investment costs Capacity [kW] Location/Source Remarks 0. Thus.1. high amounts of i. This positive assessment..45 – 0. Table C. However. Wallace. 2002) 1.10 – 1. This does not take place close to the remote villages and therefore does not result in immediate health problems. CO2. Since flue gas cleaning in these power plants is usually not elaborated well..e. however. 2003) Bangladesh (Prokahausli Sangsad Ltd.57 US$/W 0. 1998) any (Kininger..5 Inner Mongolia (Byrne. some data could be collected and is presented in Table C. CO or SO2 are emitted. 2000) Second hand generators of private service providers 0. C. Shen. the conventional grid is undoubtedly able to support electricity demand from rural health clinics.5 €/W 0. 2002) .

2003) gives 2. and costs vary strongly between different plant types and sizes. et al.. 1996). Total costs of biogas plants. According to the World Bank. The same study furthermore concluded that the prevailing view that costs for PV hardware are likely to decrease. but are generally comparatively high: depending on the size of the module and the frame conditions of the respective countries. the extension of the conventional grid is just economically feasible. are estimated to be 50 – 75 US$ per m3 capacity in (GTZ. however. can be constructed with a high share of user’s involvement. the initial investment is as well significantly higher than for diesel gensets. resulting in a comparatively good assessment of investment costs. 1996).. which is not surprising with regard to the fact that PV/Diesel and Wind/Diesel systems apply diesel gensets as well.000 US$ per kilometre (ESMAP.. Cosgrove-Davies.. Cosgrove-Davies. could not be supported. including all installations but not including land. Scenario 3: Renewable Energy Technologies The initial investment costs for SHS vary significantly from country to country. F. if 48 P = Installed Capacity in kW . the construction of power distribution lines account for 80 to 90% of the overall investment.28 €/W in the case of a 5 kW kW   genset or 0. but also within countries.48 Compared to the figures for hybrid systems. L.. Schaeffer.D. Schaeffer.16 €/W for a 20 kW diesel genset. 2000b). and can be up to 20. the World Bank estimated in 1996 that prices for SHS are typically in the range of 7 – 26 US$/Wp (Cabraal.63 × exp − 0. 1999b).. Therefore. For the evaluation. 2000). A reduction of up to 15% for labour wages can be achieved (GTZ. An appraisal in (ATB.5 – 4 €/W as a reference point for specific investment costs. A. with 250 – 400 €/ m3 for the digester.. costs for extension of the conventional grid vary widely not only among. A recent Dutch study concluded that prices are typically in the range of 10 – 22 US$/Wp (Nieuwenhout. the initial investment for diesel gensets is therefore significantly lower. and often higher energy losses (Cabraal. Biogas plants usually require high investment as well. resulting in the assessment of comparatively very poor performance with regard to investment costs. Observed price reductions are stated to be related to decreases in taxes and duties rather than to a decrease of hardware costs. M. lower capacity utilisation rates. Scenario 4: Extension of the Conventional Grid As in all of the above cases.. with the main share of the costs needed for the digester. biogas plants. 1999b). Additional costs result from the application of the biogas generator. investment cost for biogas plants can be evaluated to be lower than for hybrid systems. Due to their simplicity.Annex C: Analysis of Impacts 94 The cost analysis here revealed specific investment costs for diesel gensets of P   345. M.J. L. A.0394 ×  [€/kW]. it can be stated that SHS can require significantly higher investments per Watt than hybrid systems. meaning for example 0. For PV/Wind systems. Therefore. Problems associated with grid extension in rural areas are lower load densities in rural areas.

L.. Wallace. a considerable number of households is to be connected to the grid.20 to US$ 0. Shen.2. and is shown in Table C. A. J. and the distance between single households in the village is low (household density) (Cabraal. Schaeffer. W. 2001). 2000b).3.. J.16-1. Cosgrove-Davies. M. hybrid systems can be evaluated to be less costly than grid extension. The operational costs for diesel gensets are usually considerably high. B. 2000). should be performed on the basis of the same capacity installed and with the same electricity output. 1996.2: Electricity Generating Costs for Diesel Gensets Diesel Genset (non-continuous service) 0. For the case of Inner Mongolia. Table C. Indicator: Electricity Generating Costs Scenario 2: Diesel Gensets The costs for electricity generation with mini-grids based on diesel gensets vary depending mainly on the following factors (ESMAP..60 per kWh (ESMAP. consumption per individual consumer. For the case of a remote village. and a review of the World Bank in 1990 showed that these costs typically range from US$ 230-US$ 1. the experiences with diesel genset are presented in Table C. From a perspective of the local consumer. This was done by Wuppertal Institute in (Wuppertal Institute. Main determinant for the resulting connection cost is the average number of consumers per kilometre of line (ESMAP. the connection cost to the grid is of major importance.Annex C: Analysis of Impacts 95 - the village is situated close to the next medium-voltage line of the conventional grid. which is still lower than for hybrid systems.. and the efficiency of operation. .27 US$/kWh49 Diesel Genset (continuous service) (GTZ. with a median cost of about US$ 520 per connection.. however. and: Baur.56 US$/kWh 0.80 US$/kWh 1. 2000b): size of the generator..76-0. 1998) Source A direct comparison of hybrid systems with diesel gensets.. number of consumers. 49 Levelized costs based on field analysis of battery’s lifetime.800 per connection. 2003) (Byrne. 2002). The World Bank estimates that costs for electricity generation with such systems typically range from US $0.

However. An appraisal of the Wuppertal Institute results in electricity generating costs of 0.67 –0. delivering around 0. In countries where fuel is subsidised.. the electricity generating costs are approximately 1 US$/kWh (BMZ.15 – 0.20 . F.825 22.Annex C: Analysis of Impacts 96 Table C. Wallace. if no subsidies are provided by the respective countries. W. J. auxiliary energy sources as diesel gensets might be applied and generate additional costs (Nieuwenhout.450 23. diesel-based hybrid systems are likely not to be competitive. in the evaluation preference is given to diesel gensets due the data of the World Bank. PV/Wind household systems were experienced to be as low as 0. W.84 €/kWh 1.. B.59 €/kWh Comparing these figures for hybrid systems and diesel gensets. especially if 24-hours electrification is required. making the construction of mini-grids more attractive for villages with several households demanding electrification. thus lowering overall system costs. et al. Generally. ratio 4:1 Wind/Diesel.75 € 1. For a common 50 Wp SHS. the cost analysis of electricity generating costs reveals that SHS is likely to result in lower costs than hybrid village systems.3 shows the high dependency on the fuel price. 1999a).D. B. Shen. 2000).. et al. in the case of hybrid household systems.J. In any case. The comparison in Table C. costs do not decrease with more households applying SHS. Wallace. this situation might be considerably different as the above example of Inner Mongolia proves..5 € 1. However.73 US$/kWh (Byrne. 1999)..70 €/kWh Electricity Generating Costs at Diesel Price of 1. Whether additional costs occur is matter of further use of appliances: since SHS have limited capacity and extension is comparatively expensive.. 1998). data based on experiences could not be obtained. Nevertheless. Experiences of GTZ show that biogas programmes are usually less costly than similar strategies accounting both for energy and the production or use of fertilisers and being based on fossil resources (GTZ..51 €/kWh 1. 2000). For the application of biogas systems. these hybrid systems can compete. these costs are high and make the application of SHS difficult for electrification of the poorest. F.37 US$/kWh (Byrne..45 €/kWh 1..3: Hybrid Systems at Different Diesel Prices Capacity: 5 kW Electricity Output: 2190 kWh/a Diesel Genset PV/Diesel. Scenario 3: Renewable Energy Technologies In case smaller loads are required. J. Here. a general statement cannot be given for PV/Diesel and Wind/Diesel hybrid systems. the aspect of costs for electricity generation cannot be seen independent from the fact that the production of bio-fertiliser and a correspondent observed increase of yields generates income (GTZ. Shen. 1998).J.. photovoltaic systems are likely to become the least cost option (Nieuwenhout. Experiences in Inner Mongolia reveal costs of 0. ratio 4:1 Investment costs in € 11.740 Electricity Generating Costs at Diesel Price of 0.25 kWh of electricity on a sunny day.D. 1999b). However.

This.. operators often lack knowledge about these systems. 1996). 2002). Although the back-up diesel generator in hybrid systems is likely to be strained less than in the case of a diesel genset-based mini-grid. Schaeffer. then costs and tariffs can be relatively low. the additional requirement for the maintenance of the renewable energy generator and the other components as batteries and charge controllers give preference to the diesel genset. 2000a). A problematic experience with the education of technicians was observed in Indonesia in applying SHS: technicians who were educated within the context of the project left the villages . Nevertheless.. According to the World Bank. which is available on rural markets (Prokahausli Sangsad Ltd. A common occurrence is that a doubling of consumption per household over a time frame of ten years leads in many places to a decline of costs per kWh of about 40% (ESMAP. Cosgrove-Davies. grid extension offers the least costly option for electricity generation in cases where a medium voltage line serving a number of centres with larger loads passes the respective community nearby (ESMAP.J. as the example of Bangladesh proofs (Barkat.. L. Cosgrove-Davies. In case of system breakdowns. A.. Schaeffer. A.. et al. M. As a conclusion it is decided here to value the performance of biogas systems with regard to electricity prices significantly better than for hybrid systems. resulting in considerable effort for cleaning (Nieuwenhout. a rule of thumb from the Dominican Republic states that systems should not be installed more than 50 km away from the next service centre (Cabraal. especially simple maintenance functions as cleaning of the PV arrays can be carried out individually.. 2001). Still. L. just few households can carry out this maintenance by themselves over a long period of time (Cabraal. M. 2000). Schaeffer.. A.. from a perspective of maintenance the application of hybrid systems seems to be less favourable than diesel gensets. spare parts are difficult to purchase due to the remoteness of the villages (ESMAP. 2000b). Service centres are needed as well. 2002). Cosgrove-Davies.. A. has not to be taken for granted since costs for biogas plants vary strongly. again. F. Moreover. 1996). Indicator: Maintenance Requirements Scenario 2: Diesel Gensets The application of diesel gensets in remotely located mini-grids has been facing long-standing maintenance problems. but a single technician can serve maintenance needs for a large number of customers (Cabraal. Even though the technology itself has been known for years. as the World Bank describes. Experiences also show severe problems with poor quality contaminated fuel.Annex C: Analysis of Impacts 97 Euro/kWh for biogas plants (Wuppertal Institute. and they can even further decline with increasing consumption.. Scenario 3: Renewable Energy Technologies SHS can partly be maintained by users themselves. Technicians are needed.. 2000). 1996). If this is the case.. M. However. L. et al. not every PV user owns the required auxiliary means as for example a ladder for cleaning the PV array.D... electricity generating costs are here valued to be significantly lower for grid extension than for hybrid systems. Scenario 4: Extension of the Conventional Grid A general statement on electricity generating costs from the conventional grid cannot be given since costs vary strongly between different countries and grid characteristics.

Although the problem of batteries and charge controllers applies to SHS as well. 1999a). This lead to a lack of maintenance and undermined the whole effort for setting up a maintenance structure. resulting in comparatively very poor performance of biogas plants with regard to maintenance. If once the production of biogas is reduced. et al. Diesel gensets are also heavily dependent on the import of fuel. making the performance of diesel gensets comparatively poor with regard to this indicator. India. the comparative assessment results in a preference for grid extension. Scenario 4: Extension of the Conventional Grid System breakdowns and shortages in power supply are likely to occur due to often unreliable conventional grids in developing countries. Thus. Moreover. in Eschborn/Germany on August 14th. Maintenance usually cannot be carried out by the customers themselves or local technicians. a return to normal levels takes up to 10 days (GTZ.51 and therefore hybrid systems are evaluated to be less problematic from a point of view of maintenance. It is therefore likely that due to the remoteness of the here considered villages. the conventional grid is assessed to perform comparatively good with regard to maintenance. This dependency is of course much higher than for hybrid systems. which can be a problem especially in tropic countries where climate dictates agricultural activities. GTZ. 2003. especially in African countries. GTZ.Annex C: Analysis of Impacts 98 and searched for better paid jobs in cities (Preiser. Biogas systems require regular attendance and maintenance. 2003. the relatively higher complexity of hybrid systems compared to SHS makes the application of SHS advantageous from the point of view of maintenance. experts from GTZ have experienced maintenance as a major issue with biogas plants. Because in the case of decentralised electrification with hybrid systems. which are taken for electrification. the result is then a slight preference for hybrid systems. but taking into account the current non-existence. Assuming that markets for renewable energy technologies are likely to develop.50 For this reason. Therefore. where fuel consumption is reduced to roughly 20% of the figures for diesel-based mini-grids.. etc. Regular charging with substrate is essential. 50 51 Personal Comment given by Jörg Baur. in Eschborn/Germany on August 14th. but in case it is forgotten. Personal Comment given by Jörg Baur. resulting in longer periods of shortages. 2000). which usually have a pool of experts or technicians for this purpose. but requires help from experts even in developed countries.. very often it is just old motors from cars. Maintenance of the conventional grid is to be carried out by a central public or private utility. the result of decreasing gas production is observed with significant time lag. Indicator: Degree of Import Dependence and Regional Self-Supply Scenario 2: Diesel Gensets Diesel gensets can usually be only produced in larger countries as China. K. . the cause of problems related to the micro-organisms inside the tank cannot be identified by users themselves. local technicians need to be trained and maintenance centres need to be erected. maintenance will be carried out slowly.

the degree of supply security is here estimated to be lower than with hybrid due to the following aspects: as already described. resulting in a comparatively good performance of SHS with regard to this indicator.. The degree of import independence is here evaluated to be lower than for hybrid systems. 1996). 1999a). 2000). M. the gensets usually operate 4-12 hours in the evenings (Cabraal. the lifetime of a conventional diesel genset is about 4 years and can become as low as 1.Annex C: Analysis of Impacts 99 Scenario 3: Renewable Energy Technologies SHS offer to a large extent the possibility of independence from the import of fossil resources as oil or coal. For the case of PV/Wind systems. This effect was evaluated to be in the range of 30-35% by Indian experts (GTZ. the experience shows that due to the uncomplex nature of the systems. Indicator: Supply Security Scenario 2: Diesel Gensets Electricity provision with diesel-based mini-grids is limited. which are dependent on fuel imports to a large extent. A. Therefore preference is given to SHS with regard to import dependency since hybrid systems applying diesel gensets normally still rely on diesel imports. the degree of import dependency is difficult to assess for developing countries in general. local production of needed materials and components and respective markets can rather easily be developed. For the application of SHS in developing countries. Firstly. 1996). Schaeffer.. generating a high share of its electricity with hydropower. Cosgrove-Davies. A.5 years (Prokahausli Sangsad Ltd. obviously are less dependent on energy import than the major part of the developing countries. the result of this assessment is the same due to the fact that markets both for PV and for wind generators need to be developed before local production becomes reasonable. the World Bank in 1996 stated high transaction costs in purchase and servicing for SHS due to limited market structures (Cabraal. this is not taken in consideration. Although diesel gensets offer a proven and reliable technology for rural electrification. Cosgrove-Davies.. L.. This is due to the fact that the degree of regional self-supply is higher for decentralised electrification solutions than with the conventional grid. since it was experienced and is assumed here that markets for PV are likely to develop. The additional effect of the production of bio-fertiliser can even lower the need for import of mineral fertilisers. resulting in a comparatively very good assessment of biogas plants with regard to this indicator.. L. Thus. Furthermore.. the comparative assessment reveals a poor performance of grid extension with regard to this indicator. Schaeffer. The degree of import independence and regional self-supply is therefore rated to be significantly higher with biogas systems compared to hybrid systems.. However. M. Biogas systems provide a comparatively high potential for independence in electricity generation. Countries as Brazil. Scenario 4: Extension of the Conventional Grid On a country level. diesel gensets provide limited energy supply . ingredients for the operation of the plants are locally available.

no electricity can be generated at all For the comparative assessment here. The reason for this is on the one hand non-continuous energy provision.D. . maintenance or repair is likely to take a long time. Scenario 3: Renewable Energy Technologies Security supply with SHS is certainly to be estimated as lower than with hybrid systems. On the other hand. et al. F. The same study also reveals that larger SHS systems are working more reliable since deep discharge of batteries occurs less frequently in larger systems (Nieuwenhout. It can generally be stated that biogas plants nowadays are a mature technology (Biogas. Information concerning reliability of SHS is very limited and does not give a consistent picture. in cases of system breakdowns no back-up with other energy sources can stabilise electricity generation if no diesel genset is available. reductions and fluctuations in voltage can become so severe that the use of appliances is connected with the risk of damages for the customer (ESMAP. 2000). as was mentioned in the context of maintenance requirements already. others report 100% failures. in many regions in developing countries the quality of grid supply is rather low.. This certainly reduces the otherwise significant advantage of hybrid systems compared to grid extension concerning supply security and results in an evaluation of just better performance. F. Moreover.. the reactivation can take several days and needs the involvement of experts in case problems with the tank occur.J.J. However. no alternative energy source is available in case of shortages of fuel. it has to be considered that markets and maintenance structures for renewable energy have not yet emerged in most developing countries. 2000b). lies in the fact that once the system is down. SHS are seen as average with regard to supply security.D. being average in the comparative assessment here. 1999a). For biogas plants no information on the reliability of the systems could be obtained. a recent survey estimates that roughly three-quarters of the SHS systems operate relatively well (Nieuwenhout. For the comparative assessment here. diesel gensets are valued as average with regard to supply security. However. being average in the comparative assessment here. However. While some projects report all SHS systems as being operative.Annex C: Analysis of Impacts 100 - in case of breakdowns. the problem of biogas plants. with breakdowns in generating equipment or distribution systems and leading to intermittent availability of electricity (ESMAP. 2000b).. On the other hand. limiting electricity provision to just several hours during the day. and with system breakdowns without electricity supply during longer periods of unfavourable weather conditions. et al. It is therefore assessed that biogas systems offer a lower degree of security on energy supply. Scenario 4: Extension of the Conventional Grid From the extension of the conventional grid one can usually expect a reliable full-time coverage of electricity demand. implying that in case of breakdowns.. 2000).

000 € Planning. 57 Personal Comment given by Jörg Baur. Maintenance and Repair: Annually 4% of total investment Cost data SMA KfW55 Schueco56 Own estimation GTZ57 Own assumption For PV and Wind: (Sauer. GTZ. in Eschborn/Germany.1068 × Costs/Details Source Schüco52   P  53  in [€/kW] kW  P   in [€/kW] kW  For Plants ≥ 10 kW: Costs = 2016. 500Ah battery. Inverter and Charge Controller 10 years 52 Personal Comment given by Mr. Körner during a telephone interview on August 18th. Wind generator 12 years. former KfW staff member. the batteries are designed for a storage capacity of 2 days Inverter and Charge Controller “Sunny Island”.7 × exp − 0. during a telephonme interview on August.0394 ×   Own calculation based on available cost data Investment   P   in [€/kW] kW  Schüco 54 Battery bank: 333 €/kWh for a 12V. 4. Geis. Puls. the following basic assumptions were made. Table D. Bopp.. 54 Personal Comment given by Mr. 2003. on August 14th.007 × Diesel Genset: Costs = 345. Cables. D. 2003. Support: 2. Assembly and Commissioning: 15% of total investment Transport: 1. Körner during a telephone interview on August 18th.000 € Cabinet. Tower) For Plants ≤ 10kW: Costs = 4309 × exp − 0. G. .Annex D: Cost Analysis 101 Annex D: Cost Analysis For the cost analysis.000 € Operating Costs Manpower.5kW: 5.. 55 Personal Recommendation given by Mr.. 53 P = Installed capacity in kW. 56 Personal Comment given by Mr. 2003).63 × exp − 0. Diesel Genset 10 years.1 Main Assumptions for the Cost Analysis Type of Costs PV Modules 400 €/kWp Wind Power Plants (incl. 2003. Körner during a telephone interview on August 18th. Internal Wiring: 6. Battery 5 years. 2003.000 € Local grid. 2003. H. others: own assumption Interest Rate: 6% Miscellaneous Lifetime system components: PV modules 20 years. 22nd.

998. 2003) Remarks Source INCLIN 600 AC 752 turbo MAJA 1000 INCLIN 1500 neo GRT 2000 INCLIN 3000 neo INCLIN 6000 neo Inventus 6 GRT 8000 AIRMAXX-10 Novatec ML10Eco Vergnet GEV10/20 Fuhrländer FL30 Vergnet GEV15/60 Lagerwej LW18 6. 59 Personal Comment given by Mr.84 1.75 1.117.48 3.981.980.294. 2003)60 58 Personal Comment given by Mr.742. 1st. . Twele during a telephone interview on September. The details are shown in the following tables.599.00 2.0 60.970.0 17.0 3.Annex D: Cost Analysis 102 The investment costs for wind power plants and diesel gensets are based on the costs for different plants from various manufacturers.8 1.5 2.0 8.00 60.00 9.17 (Heyde.39 Specific Investment Costs [€/kW] 349.9 Total Investment Costs [€] 629.40 3.0 1.499.725.199.165.97 3.0 6.373.762. 2003) Including 11 m tower Bundesverband 58 Windenergie Including 18m tower Including 27m tower Including 30m tower Including 40m tower Bundesverband 59 Windenergie Table D. Table D.40 2.600.0 10.60 Including 19 m tower Inventus Windpower GmbH Including 11 m tower (Heyde.08 1.40 17. 1st.20 3.310.0 20.970.381.94 297.80 6.0 80.60 5.68 4.00 1.44 78.0 10.8 2.38 Source (Diesel.24 10.08 19.3 Investment Costs for Diesel Gensets Diesel Generator Mitsubishi MGE-1800 ROU Mitsubishi MGE-2900 ROU Capacity [kW] 1.420.6 0.68 2.680.80 6.802.0 30.17 1. 2003. 2003.51 1.2 Investment Costs for Small-Scale Wind Power Plants Name Capacity Total Investment Specific Investment Costs [€] Costs [€/kW] [kW] 0.490.022.324.67 5.471.80 29. Twele during a telephone interview on September.069.68 1.00 89.40 2.509.999.90 862.751.0 3.954.

90114 € (September 8th. 2003).7 × exp − 0.Annex D: Cost Analysis 103 Diesel Generator Yamaha EF4000DE Yamaha YG4000D Yamaha EF5200DE Yamaha EF6600DE Yamaha EF12000DE Capacity [kW] 4 4 5.00 0 5 10 15 P   Costs = 2016.500 1.1068 ×  in [€/kW] kW   Specific Investm ent for Diesel Gensets Specific Investment [€/kW] 400.693.63 × exp − 0.000 4. . 2003)61 The decline in specific investment cost per kW is reflected in the following graphs.00 0.1 Specific Investment for Wind Power Plants and Diesel Gensets 60 61 Calculated Exchange Rate: 1 US$ = 0.000 3.67 1.242.000 5. 2003).00 300.51 1.37 251.2 6.51 Specific Investment Costs [€/kW] 310.500 2. Calculated Exchange Rate: 1 US$ = 0.000 500 0 0 50 100 Installed Capacity [kW] P   Costs = 4309 × exp − 0.657.67 279.000 2.000 0 0 5 10 15 Installed Capacity [kW] Specific Investm ent for Plants =>10kW Specific Investment [€/kW] 2.6 12 Total Investment Costs [€] 1.09 224.13 275.46 Source (Diesel.20 2. Specific Investm ent for Plants <=10kW Specific Investment [€kW] 6.00 100.007 ×  in [€/kW] kW   Installed Capacity [kW] P  Costs = 345.90114 € (September 8th.431.000 1.91 1.000 1.00 200.0394 × kW    in [€/kW]  Figure D.116.

000 0 20 40 60 80 Installed Capacity [kW] Investment Costs [€/kW] P  P    Costs = 8241.000 9.000 6.200 9.000 8.000 8. still being relatively poor.400 8.5 × exp − 0.000 7.000 10.000 6.Annex D: Cost Analysis 104 While the regression is rather fair in the case of diesel gensets with a regression coefficient of R2 = 0.000 0 50 100 150 11.7 × exp − 0. this leads to the following range of investment costs. this is not the case for wind power plants. it was distinguished between plants of smaller capacity ≤ 10 kW and plants of higher capacity ≥ 10 kW in order to improve the accuracy of regression.000 12.600 8.800 8.1 Investment Costs The analysis investment costs revealed the following results.000 0 20 40 60 80 Installed Capacity [kW] PV/Wind at 2 Days Battery 14.0027 ×  in [€/kW] kW  kW    Figure D.6659 in the case of smaller plants and R2 = 0.2 Specific Investment for Hybrid Systems of Different Capacities For the different village sizes as presented in Annex A.000 6. Regression coefficients of R2 = 0. With this data.000 9. Investment Costs [€/kW] . D.1 × exp − 0.000 7.200 8.000 8.000 8.0034 × kW  kW    PV/Wind at 1 Day Battery 10.8422.000 0 20 40 60 80 Wind/Diesel Investment Costs [€/kW] Investment Costs [€/kW] Installed Capacity [kW] Installed Capacity [kW] P  P    Costs = 8880.0037 ×  in [€/kW] Costs = 11061 × exp − 0. PV/Diesel 9.000 10. Here.0009 ×  in [€/kW]  in [€/kW] Costs = 9564.7163 for bigger plants were obtained. the analysis of investment and electricity generating costs was performed.400 9.

maintenance. the following results were obtained: .05 9. For the different systems and varying diesel fuel prices.44 12.4 Range of Investment Costs for Hybrid Systems System PV/Diesel Systems Wind/Diesel Systems PV/Wind Systems at 2 days battery capacity PV/Wind Systems at 1 day battery capacity Investment Costs at 30 Households [€/W] 9.18 Investment Costs at 300 Households [€/W] 8. the total annual costs can be calculated.Annex D: Cost Analysis 105 Table D. repair and diesel fuel. the following formula was used to calculate the annuity of the investment costs of single components: a = C0 × (1 + i )n − 1 i × (1 + i ) n With a i = Annuity = Interest Rate = 6% C0 = Capital Value n = Component Lifetime The total annuity of investment is then the sum of the single annuities.20 10. With the help of the underlying assumptions as presented on page 101.67 6.2 Electricity Generating Costs The electricity generating costs per kWh were calculated with the help of the annuity method. By adding the annuities of operation costs for manpower.00 9.86 D.23 8. Division of the annual costs by the annual electricity production leads to the specific electricity generating costs per kWh.

46 1.47 1.48 1.50 1.51 1.48 1.50 1.42 1.67 1.43 1.47 1.49 1.46 1.68 1.43 1.4 1.55 1.53 1.49 1.50 1.50 1.47 1.54 1.1 1.45 1.45 1.52 1.50 1.53 1.50 1.48 1.45 1.8 1.46 1.52 1.53 1.53 1.4 1.48 1.43 1.42 1.47 1.50 1.45 1.49 1.47 1.46 1.6 1.49 1.52 1.52 1.51 1.51 1.48 1.49 1.45 1.52 1.44 1.48 1.46 0.47 1.8 1.44 1.48 1.5 Electricity Generating Costs of PV/Diesel Systems [€/kWh] Number of Households 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 110 120 130 140 150 160 170 175 200 225 250 275 300 Diesel Fuel Price [€/l] 0.53 1.45 1.43 1.45 1.51 1.46 1.44 1.50 1.50 1.45 1.47 1.45 1.49 1.46 1.46 1.46 1.48 1.46 1.52 1.69 1.50 1.51 1.48 1.47 1.48 1.54 1.73 1.52 1.45 1.48 1.53 1.53 1.73 1.44 1.51 1.44 1.47 1.51 1.47 1.44 1.47 1.49 1.44 1.2 1.47 1.44 1.46 1.54 1.53 1.47 1.6 Electricity Generating Costs of Wind/Diesel Systems [€/kWh] Number of Households 30 35 40 Diesel Fuel Price [€/l] 0.47 1.48 1.48 1.49 1.49 1.51 1.46 1.49 1.48 Table D.49 1.47 1.52 1.46 1.48 1.45 1.3 1.45 1.48 1.49 1.66 1.65 1.47 1.45 1.50 1.48 1.49 1.45 1.45 1.47 0.55 1.44 1.48 1.49 1.49 1.47 1.45 1.44 1.48 1.64 1.48 1.43 1.49 1.51 1.69 1.47 1.43 1.42 0.44 0.43 0.43 1.47 1.48 1.53 1.45 1.43 1.56 1.1 1.49 1.44 1.54 1.65 1 1.49 1.51 1.46 1.45 1.72 1.45 1.61 0.50 1.45 1.45 0.46 1.44 1.48 1.46 1.63 0.68 1.50 1.46 1.47 1.50 1.58 1.50 1.49 1.45 1.62 0.50 1.44 1.51 1.48 1.52 1.47 1.49 1.49 1.46 1.42 1.51 1.47 1.46 1.45 1.51 1.56 1.48 1.55 1.7 1.47 1.7 1.46 1.9 1.46 1.66 1.Annex D: Cost Analysis 106 Table D.50 1.48 1.52 1.70 1.42 1.50 1.53 1.49 1.47 1.2 1.43 1.53 1.70 1.49 1.48 1.49 1.48 1.9 1.46 1.69 1.46 1.50 1.47 1.51 1.47 1.63 0.59 0.54 1.49 1.45 0.49 1.47 1.47 1.52 1.46 1.70 1.45 1.51 1.51 1.6 1.51 1.43 0.44 1.5 1.47 1.46 1.48 1.47 1.46 1.48 1.53 1.56 1.43 1.43 1.48 1.55 1.47 1.49 1.47 1.52 1.44 1.49 1.51 1.47 1.49 1.71 1.48 1.48 1.43 1.67 1.47 1 1.47 1.45 1.50 1.60 0.45 1.46 1.44 1.57 1.49 1.68 1.47 1.50 1.44 1.61 0.54 1.52 1.48 1.51 1.49 1.50 1.5 1.3 1.71 1.48 1.65 .52 1.50 1.44 1.46 1.55 1.43 1.64 0.

42 0.58 1.50 1.44 1.56 1.48 1.51 1.56 1.47 1.61 1.45 1 1.43 0.46 1.47 1.50 1.54 1.50 1.44 1.42 1.52 1.55 1.47 1.52 1.46 1.46 1.49 1.50 1.48 1.56 1.48 1.44 0.51 1.51 1.48 1.43 1.53 1.7 1.47 1.48 1.47 1.49 1.56 1.51 1.51 1.45 1.48 1.48 1.54 1.2 1.43 1.45 1.47 1.1 1.41 0.6 1.53 1.61 1.47 1.54 1.49 1.56 1.48 1.50 1.52 1.50 1.48 1.46 1.48 1.50 1.43 1.55 1.53 1.50 1.58 1.60 1.45 1.51 1.52 1.48 1.46 1.52 1.62 1.46 1.51 1.49 1.51 1.47 1.45 1.52 1.54 1.56 1.49 1.55 1.49 1.45 1.45 1.42 1.46 1.53 1.47 1.44 1.50 1.8 1.46 1.51 1.48 1.51 1.47 1.52 1.54 1.49 1.55 1.49 1.55 1.45 1.43 1.50 1.50 1.44 1.48 1.59 1.53 1.41 1.47 1.49 1.43 1.55 1.50 1.44 0.53 1.49 1.45 1.5 1.51 1.55 1.44 1.45 1.53 1.41 1.51 1.43 1.63 1.55 1.44 1.54 1.50 1.49 1.44 1.53 1.52 1.46 1.41 1.53 1.50 1.42 1.61 1.54 1.44 1.48 1.46 1.48 1.48 1.51 1.52 1.60 1.52 1.Annex D: Cost Analysis 107 Number of Households 45 50 55 60 65 70 75 80 85 90 95 100 110 120 130 140 150 160 170 175 200 225 250 275 300 Diesel Fuel Price [€/l] 0.50 1.45 1.46 1.53 1.49 1.42 1.40 0.48 1.43 1.46 1.46 1.47 1.43 1.49 1.44 1.52 1.51 1.53 1.51 1.49 1.49 1.59 1.51 1.40 1.46 1.44 1.46 1.51 1.53 1.50 1.57 1.49 1.52 1.49 1.45 1.47 1.51 1.42 0.44 1.46 1.50 1.45 1.54 1.48 1.44 1.4 1.48 1.46 1. .45 1.49 1.47 1.48 1.52 1.47 1.50 1.50 1.40 0.47 1.49 1.47 1.48 1.46 These figures can be illustrated with the graphs on the following page.48 1.42 1.41 1.50 1.50 1.51 1.55 1.53 1.45 1.3 1.51 1.49 1.52 1.48 1.53 1.9 1.51 1.57 1.59 1.49 1.52 1.56 1.53 1.53 1.46 1.59 1.57 1.54 1.57 1.47 1.58 1.

55-1. The buckling in the curve progression is a result of the different equations used for small and big wind generators.30 1. meanwhile. D.45 108 Figure D. seem to reach a threshold value at all diesel fuel prices.80 1. which they are likely not to fall below. 1999).4 Illustration of Electricity Generating Costs for Wind/Diesel The cost analysis of hybrid systems here reveals that electricity generating costs are decreasing with higher loads and lower diesel fuel prices.55 1.35 1.70 1.70 1.40 1.50 1.50 Figure D. This observation is supported by the investigations of the Fraunhofer Institute in (Sauer.80 Electricity Costs [€/kWh] 1.40-1. et al.45-1.50 1.60 1.60 Electricity Costs [€/kWh] 1.30 30 45 60 110 140 170 225 Num ber of Households 75 90 0. This effect is stronger in the case of Wind/Diesel systems.45 1.60-1.50-1..40-1.1 300 1 Diesel Costs [€/l] 1. This is due to the fact that the decline in investment costs of diesel gensets at certain installed capacities does not trade off the high investment for the PV modules anymore.55 1.70-1.60 1. PV/Diesel systems.40 1.1 300 1 Diesel Price [€/l] 1.20 30 45 60 110 140 170 225 Num ber of Households 75 90 0.50 1.Annex D: Cost Analysis 1.. where costs decline over the whole area of investigation due to the decrease in specific investment costs for wind power plants with higher capacities.50-1.3 Illustration of Electricity Generating Costs for PV/Diesel 1.60 1. where it is calculated that electricity generating costs are .

58 1.54 1.57 1.07 1.56 1.04 1.01 1.Annex D: Cost Analysis 109 likely not to become lower than 1.10 1.57 1.56 1.04 1.73 1.58 1.01 1.52 1 Day 1.12 1.00 1.98 0.18 1.66 1.00 1.7 Electricity Generating Costs PV/Wind Number of Households 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 110 120 130 140 150 160 170 175 200 225 250 275 300 PV/Wind Systems with Battery Capacity for 2 Days 1.54 1.64 1.58 1.58 1. For PV/Wind systems.01 1.09 1.62 1. the following results were obtained with regard to electricity generating costs per kWh: Table D.03 1.03 1.01 1.02 1.000 kWh and at an interest rate of 6%.63 1.69 1.00 0.02 1.52 1.53 1.03 Euro/kWh for systems with lower annual consumption of 15.99 0.15 1.98 .55 1.98 0.03 1.54 1.05 1.99 0.22 1.03 1.76 1.56 1.54 1.55 1.56 1.53 1.59 1.

9 kWp 6.76 Euro kWh.6 kW 96.. Fraunhofer Institut für Solare Energiesysteme ISE in (Sauer. 1. 11. For the chosen location of Trapani/Italy with annual global radiation of 1.6 kWh 1... et al. D. Result o Electricity generating costs of 1.Annex D: Cost Analysis 110 The analysis of PV/Wind systems shows the high dependency of electricity generating costs from the size of the battery bank. These costs increase for remote regions.00 Euro/l 5.5 Euro/h Electricity generating costs of 0. 1.000 kWh/a 77% 0. Assumptions o Electricity Consumption: o Solar Coverage Rate: o Diesel Fuel Price: o Interest Rate: o Labour Costs: 2. transport and construction for Kassel/Germany. the circumstances are just moderately suited for fully renewable coverage of electricity demand.34 Euro/kWh. Result 50 kWh/d 9.3 Electricity Generating Costs from Different Sources Institut für Solare Energieversorgungstechnik (ISET) in (Kininger.752 kWh/m2/a 1.000 full load hours for wind generators. D.30 Euro/l 6% 350 Euro/d . Assumptions o Electricity Consumption: o Capacity PV Modules: o Capacity Diesel Genset: o Battery Bank: o Inverter: o Energy Management System applied o Global radiation in Sevilla/Spain: o Diesel Costs: o Interest rate: o Labour Costs: 2.0 kWh 6.0 % 37.664 kWh/m2/a and under the assumption of 2. 1999) PV/Diesel hybrid system for Mexico City. F. 2002) PV/Diesel hybrid system for Sevilla/Spain with costs on planning.

087 11.85 US$/kWh Wind/Diesel Village System 0. with large hybrid systems being less expensive. 1. Result 1. Shen.8 Investment and Operating Costs of Different Household Systems.72 US$/kWh. China. Results Table D. 100 W PV) for household electrification.82 US$/l 12% Levelised costs based on field analysis of battery’s lifetime. J.. 2003) Application of PV/Diesel and Wind/Diesel hybrid systems for village electrification.150 kWh/m2/a 150 W/m2 300 W 100 W 0.9 Electricity Generating Costs of Hybrid Systems in Inner Mongolia PV/Diesel Village System 1. Gesellschaft für technische Zusammenarbeit GTZ.837 6. W.720 Operating costs/year [RMB/a] 100 119 119 Table D. Inner Mongolia System specification PV-Battery-Inverter System (100 W) Wind-Battery-Inverter System (300 W) Wind-PV-Battery-Inverter System (300 + 100 W) Investment costs [RMB] 6. Wallace. B... in (GTZ. Assumptions o Global radiation: o Wind Energy Density: o Capacity Wind: o Capacity PV: o Diesel Fuel Price: o Interest Rate: 2.Annex D: Cost Analysis 111 National Renewable Energy Laboratory(NREL)/University of Delaware in (Byrne. 1998) PV/Wind Household hybrid systems for Inner Mongolia.75 US$/kWh PV/Wind Household System 0. Costs are related to the size of the system. PV/Wind hybrid systems (300 W Wind. Electricity Generating Costs: 0.37 US$/kWh .43 US$/kWh – 0.

190 kWh/a Diesel Genset PV/Diesel.45 €/kWh 1.5 € 1.740 Electricity Generating Costs at Diesel Price of 0.70 €/kWh Electricity Generating Costs at Diesel Price of 1.51 €/kWh 1.75 € 1.450 23. 2002) Table D. ratio 80:20 Wind/Diesel.84 €/kWh 1. ratio 80:20 Investment costs in € 11.Annex D: Cost Analysis 112 Wuppertal Institute in (Wuppertal Institute.825 22.59 €/kWh .10 5 kW Hybrid Systems at Different Diesel Prices Capacity: 5 kW Electricity Output: 2.

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