Enabling private sector investment in off-grid electrification for cleaner production: Optimum designing and achievable rate of unit electricity

Abstract

The electrification rate and unit rate of electricity are important factors for economic and social development; especially in developing countries. The supply of electric power at low rates can help in setting ambitious targets to expand the reach of electricity to remote rural areas. The private or local investment to build isolated microgrids could be a cost effective and technically viable solution to extend the electricity access in different countries. However, country specific feasibility studies are required which can help to estimate the required investment and life cycle expenditures. In this paper, an algorithm has been presented for optimal sizing and life cycle cost analysis of an off-grid solar PV system. As a case study, an off-grid PV system is designed to build a zero energy community in five capital cities of Pakistan in order to access the feasibility and potential of off-grid power systems throughout the country. Furthermore, life cycle cost analysis of designed PV system has been carried out in order to determine the unit cost of electricity. The results of economic model show that, the installed PV system can provide electricity at an average rate of 0.082 US$/kWh for all cities with a minimum rate of 0.076 US$/kWh achieved for Quetta whereas; cost of conventional electricity varies from 0.15 to 0.20 US$/kWh in Pakistan. It can be concluded that, installing an off grid PV system in Pakistan is viable both technically and economically. The produced electricity is 45–58% cheaper than the conventional electric power supply used in the country. This study can be used as a benchmarking and guideline to design off-grid PV power systems for other facilities and locations with estimated load demands.