Model-base cost evaluation of microgrids systems for rural electrification and energy planning purposes

Abstract

With pressing priorities in the development agenda, policy makers in developing countries are in the difficult situation of prioritizing policy actions. Limited government and utility budgets need cost effective solutions to bring the desired development benefits of electrification, health, education and food security among others. Energy access is a prerequisite for economic activity and for human development as interacts in synergy with other development needs. As rural electrification models usually focus on the supply of electricity solely, thermal energy needs, such as cooking and water heating remain unattended and satisfied by non-renewable energy fuels. To this aim, we explore optimal electrification solutions addressing two types of energy demands, electricity and thermal energy demands for cooking. Our model builds on a 3-step electrification methodology proposed by Peña et al. including electricity as a modern source of clean energy for cooking in rural communities. The total investments needed to build and operate the microgrids, including distribution costs, is 332 million USD. This is equivalent to 1129 USD/per inhabitant. This amount does not account however the health and environment benefits that e-cooking can bring to inhabitants in Bolivian low-lands.