Economic Evaluation of the PV Micro Utilities Installed by Grameen Shakti for Rural Electrification in Bangladesh

Abstract

Sharing expensive technology can serve many users, even poor users. Grameen Shakti has developed a special programnamed PV micro utility to make it easier for those who cannot afford SHSs individually. Under this program, GrameenShakti allows people to share the cost and the subsequent benefit of using a SHS. In this study, operation and financialmechanism, analysis of cost of systems, tariff system, simple payback period, NPV and IRR of the micro utility systemshave been analyzed to show the financial viability of PV MU from the PV MU owner’s perspective. Results suggest thatthese systems have simple payback period of around 4-6 years. The NPV of systems varied from 27,000 BDT to 144,000BDT. The levelized electricity cost of PV MU systems is 70 BDT (~0.86 $)/kWh in Bangladesh. The owner has to spendonly 7.50 BDT/day but can earn at least 30-40 BDT per day, and up to 130-200 BDT/day.Keywords - Rural Electrification, Solar PV, Grameen Shakti, Bangladesh, Economic Evaluation.