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Economic evaluation of small-scale photovoltaic hybrid systems for mini-grid applications in far north Cameroon

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  • Mbaka, Nfah Eustace
  • Mucho, Ngundam John
  • Godpromesse, Kenne

Abstract

A comparison between photovoltaic hybrid systems (PVHS), standalone photovoltaic (PV) and standalone diesel generator options is performed using the net present value (NPV) technique. A typical village mini-grid energy demand of 7.08 kWh/day is considered in the computation of energy costs and breakeven grid distances. A first sensitivity analysis is conducted using remote diesel prices of 0.8 €/l, 0.98 €/l, 1.12 €/l, 1.28 €/l with a PV module cost of 7.5 €/Wp. A second sensitivity analysis is also done using PV module costs of 5.25 €/Wp, 6 €/Wp, 6.75 €/Wp, 7.5 €/Wp with a diesel price of 1.12 €/l. The energy cost for the diesel option was found to be 0.812 €/kWh at a diesel fuel price of 1.12 €/l. The sensitivity analyses showed that minimum energy costs were attained in PVHS at renewable energy fractions in the range 82.6–95.3%. In the second sensitivity analysis the energy costs and breakeven grid distances were found to be in the ranges 0.692–0.785 €/kWh and 5.1–5.9 km respectively. For a PV module cost of 5.25 €/Wp, the lowest energy cost for the PVHS option was 0.692 €/kWh at a final renewable energy fraction of 95.3% with the diesel generator hours being 37 h compared to 2075 h in the standalone diesel generator option. Consequently, a 30% reduction in custom duties and taxes on imported PV modules and sub-systems would increase the use of small-scale and climate friendly PV mini-grids in remote areas of far north Cameroon that have an annual insolation of at least 5.55 kWh/m2/day.

Suggested Citation

  • Mbaka, Nfah Eustace & Mucho, Ngundam John & Godpromesse, Kenne, 2010. "Economic evaluation of small-scale photovoltaic hybrid systems for mini-grid applications in far north Cameroon," Renewable Energy, Elsevier, vol. 35(10), pages 2391-2398.
    • Handle: RePEc:eee:renene:v:35:y:2010:i:10:p:2391-2398
    DOI: 10.1016/j.renene.2010.03.005
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    2. Anderson Gwanyebit Kehbila & Dieudonne Alemagi & Peter Akong Minang, 2014. "Comparative Multi-Criteria Assessment of Climate Policies and Sustainable Development Strategies in Cameroon: Towards a GIS Decision-Support Tool for the Design of an Optimal REDD+ Strategy," Sustainability, MDPI, vol. 6(9), pages 1-16, September.
    3. Khoury, J. & Mbayed, R. & Salloum, G. & Monmasson, E. & Guerrero, J., 2016. "Review on the integration of photovoltaic renewable energy in developing countries—Special attention to the Lebanese case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 562-575.
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    5. Moner-Girona, M. & Solano-Peralta, M. & Lazopoulou, M. & Ackom, E.K. & Vallve, X. & Szabó, S., 2018. "Electrification of Sub-Saharan Africa through PV/hybrid mini-grids: Reducing the gap between current business models and on-site experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 1148-1161.
    6. Nfah, E.M. & Ngundam, J.M., 2012. "Identification of stakeholders for sustainable renewable energy applications in Cameroon," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4661-4666.
    7. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    8. Abanda, F.H., 2012. "Renewable energy sources in Cameroon: Potentials, benefits and enabling environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4557-4562.
    9. Khan, Mohammad Junaid & Yadav, Amit Kumar & Mathew, Lini, 2017. "Techno economic feasibility analysis of different combinations of PV-Wind-Diesel-Battery hybrid system for telecommunication applications in different cities of Punjab, India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 577-607.
    10. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
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