Abstract

Click to increase image sizeClick to decrease image sizeDecentralised rural electrification is on the agenda of many countries and international organisations. In rural areas of developing countries, small hydropower plants are a first choice solution to electrify the villages which are too costly to connect to national or regional grids. This article proposes a simple general methodology to define the average tariff of decentralised rural electrification services from the profitability index of a reference project and its links with the average gross margin ratio of the rural electrification company. An example of an electrification of a typical village in a developing country based on a stand alone 25 kw small hydropower plant is described and discussed, including comparisons with an alternative solution based on the use of internal combustion engines. Three types of rural electrification companies with different management and marketing strategies are considered and the potential consequences of these differences on tariffs are presented and discussed.

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