Economic evaluation of a stand-alone residential photovoltaic power system in Bangladesh

The economics of stand-alone photovoltaic power system is studied to test its feasibility in remote and rural areas of Bangladesh and to compare renewable generators with nonrenewable generators. The life cycle cost of these generators are determined using the method of net present value analysis. It is found that the life cycle cost of this experimental PV system is Tk. 43.40/kWh for one family (US $1.00 = Bangladeshi taka Tk,50.00). The life cycle cost for grid electricity is Tk. 20.00/kWh and Tk. 7.75/kWh for generation of fuel costs of Tk. 6.80/kWh and Tk. 0.47/kWh respectively. For a village 1 km away from the distribution line, this cost becomes Tk. 125.00/kWh for a family. For petrol generator life cycle cost is Tk. 50.00/kWh at fuel price of Tk. 22.00 per litre. For diesel generator life cycle cost is found to be Tk. 46.10/kWh at fuel cost of Tk. 15.00 per litre. It is observed that the life cycle cost of one unit of energy from grids that are 1 km away from a village is much higher than the cost of energy from a PV system. Thus, the use of PV system is economically feasible in rural villages and remote areas of Bangladesh, where grid electricity is not available. (C) 2000 Elsevier Science Ltd. All rights reserved.