Distributed power generation versus grid extension: an assessment of solar photovoltaics for rural electrification in Northern Ghana

Abstract

AbstractThe competitiveness of distributed solar photovoltaic (PV) power generation for rural electrification in northern Ghana is assessed and compared with the conventional option of extending the national grid and increasing the capacity for centralised power generation. A model is constructed to calculate the life‐cycle cost (LCC) of the two options and to test the sensitivity of different parameters. All calculations are based on information from the GEF/UNDP pilot region in the East Mamprusi District. In addition to the economic aspect, issues of quality and environmental effects are discussed. The LCC of distributed PV is lower than that of a grid extension for an electricity demand corresponding to solar home systems of 140 Wp or smaller. Thus, distributed PV is cost competitive for purposes of lighting, entertainment, information and basic public facilities, such as schools and hospitals. The LCC for the option of grid extension with central power generation is dominated by the cost of low‐voltage micro‐grids within the communities. Important factors are the density of households and the penetration (fraction of households electrified), as they affect the line length per connected household. The relatively low cost of regional medium‐voltage grids makes the geographical location of each community less important than expected. Battery replacement every fifth year makes up the major part of the LCC of solar home systems and is also responsible for the large energy input in the production of the systems. This could limit both future cost reductions of distributed PV and its potential to mitigate greenhouse gas emissions. Copyright © 2002 John Wiley & Sons, Ltd.