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Energy Systems and Technologies for the Coming Century ...

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case of Nepal, it is 5% (Trading economics, 2011a), <strong>and</strong> <strong>for</strong> <strong>the</strong> case of Afghanistan, it is4% (Trading economics, 2011b). The bank’s nominal interest rate in lending is 16%(Nepal) <strong>and</strong> 18% (Afghanistan).Discount RateThe role of discount rate is important in estimating levelized cost. This is <strong>the</strong> real annualinterest rate also called <strong>the</strong> real interest rate, which is used to convert between one-timecosts <strong>and</strong> annualized costs. The annual real interest rate is related to <strong>the</strong> nominal interestrate of <strong>the</strong> bank <strong>and</strong> has relation with <strong>the</strong> inflation rate. This is represented in <strong>the</strong> equationas: Discount Rater …...101 Thus, discount rate adopted <strong>for</strong> <strong>the</strong> calculation is 10% (Nepal) <strong>and</strong> 13% (Afghanistan).Life time electricity is <strong>the</strong> present worth of <strong>the</strong> total life time useful electricity (E l )produced over a life span of N year <strong>and</strong> discounted at <strong>the</strong> rate “r”. If “E” is <strong>the</strong> energyproduced annually, <strong>the</strong>n: ∗ …eq. 113. Result <strong>and</strong> Analysis3.1 Levelized cost of <strong>the</strong> Solar Home System (SHS) <strong>and</strong> Wind Home System (WHS)Individual home system <strong>for</strong> <strong>the</strong> electricity is increasing popularly in <strong>the</strong> rural areas tomeet <strong>the</strong>ir basic electricity needs mainly <strong>for</strong> lighting. Among <strong>the</strong>m, solar home systems(SHS) have widely been used in <strong>the</strong> scattered rural areas of developing countries(Chaurey <strong>and</strong> K<strong>and</strong>pal, 2010; Rai, 2004). The dissemination of solar PV systems hasbeen significantly increased in <strong>the</strong> last decades in <strong>the</strong> rural electrification of Nepal(Mainali <strong>and</strong> Silveira, 2010), <strong>and</strong> this technology is also getting popularity in <strong>the</strong> remoteareas of Afghanistan. Afghanistan is a Sunbelt country with huge potential of solarenergy including solar PV Burns (2011). However, as mentioned earlier, wind resourceshave not been explored in both countries (Afghanistan <strong>and</strong> Nepal). Wind mapping startedin Nepal in 2003 with <strong>the</strong> support of SWERA, but no wind mapping activities werereported in <strong>the</strong> case of Afghanistan. SHS basically comprises solar PV modules, a bankof battery, charge controller <strong>and</strong> supplies <strong>the</strong> DC output. DC appliances like CFL lamps,TVs <strong>and</strong> small radios are <strong>the</strong> most commonly used loads which are served by such kindof system. Wind home system (WHS) also has a wind generator <strong>and</strong> its mountingaccessories <strong>and</strong> o<strong>the</strong>r components are similar as mentioned in <strong>the</strong> case of SHS. In thissection, <strong>the</strong> levelized cost of isolated home technologies viz.: SHS of 40 watt peak <strong>and</strong>WHS of 400 watts rated output (<strong>for</strong> Nepal) <strong>and</strong> SHS of 60 watt peak (<strong>for</strong> Afghanistan)have been estimated. The technical <strong>and</strong> economical parameters of <strong>the</strong> SHS <strong>and</strong> WHSwith detail breakdown have been presented in table 1.Risø International <strong>Energy</strong> Conference 2011 Proceedings Page 366

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