A Cost-Benefit Analysis of Concentrator Photovoltaic Technology Use in South Africa: A Case Study
AbstractThe South African government currently faces the dual problems of climate change mitigation and the rollout of electricity provision to rural, previously disadvantaged communities. This paper investigates the economic efficiency of the implementation of concentrator photovoltaic (CPV) technology in the Tyefu area in the Eastern Cape, South Africa as a means of addressing these problems. A cost-benefit analysis (CBA), both from a social and a private perspective, is carried out in the study. The CBA from a private perspective investigates the desirability of the CPV project from a private energy investorâ€™s point of view, whilst the CBA from a social perspective investigates the desirability of the CPV project from societyâ€™s point of view. The CBA from a social perspective found that the project was socially viable and was, thus, an efficient allocation of government resources. The CBA from a private perspective, on the other hand, found that investing in a CPV project was not financially viable for a private investor. It is recommended that the government consider CPV as an alternative to grid-connected electricity provision to rural, previously disadvantaged communities.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 343.
Length: 20 pages
Date of creation: 2013
Date of revision:
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Cost-benefit analysis; concentrator photovoltaic technology; social discount rate;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-04-27 (Africa)
- NEP-ALL-2013-04-27 (All new papers)
- NEP-ENE-2013-04-27 (Energy Economics)
- NEP-PPM-2013-04-27 (Project, Program & Portfolio Management)
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