A Paraguayan Case Study on the Production of Electricity from Fuel Cells for Distributed Generation

Abstract

The result of a preliminary economic evaluation of distributed generation of electricity with a molten carbonate fuel cell (MCFC) in Paraguay is presented in this work. For this purpose, a mathematical model that represents the main technical and economic characteristics involved in the operation of MCFCs was applied. The model is applied in a horizon of 20 years and shows how costs are influenced by the projected energy demand increase of the studied population and by the decrease of MCFC unit cost due to technological advances and mass production. The studied population is Bahía Negra district in the department of Alto Paraguay. The results show that the generation cost of electricity by MCFC is high, US$ 290/MWh and US$ 270/MWh, for conservative and optimistic scenarios, respectively. However, in these situations, the feasibility analysis of electricity supply to isolated communities with low living standards and in developing countries based only on the comparison and quantification in monetary terms is not enough. This is because there are intangible benefits that are difficult to quantify and, therefore, to express in monetary terms. For example, it is very difficult to quantify in monetary terms the improvements in environmental conditions and quality of life of the community. Finally, the use of fuel cells for distributed generation of electricity in rural areas of Paraguay is feasible if the social and environmental aspects are considered, not just economics.