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Energy Systems and Technologies for the Coming Century ...

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The Levelized costs were varying within 0.28-0.35 USD/kWh <strong>for</strong> <strong>the</strong> plant of 25 kW <strong>and</strong>0.25-0.30 USD/kWh <strong>for</strong> <strong>the</strong> plant size of 50 kW in case of Nepal. In o<strong>the</strong>r h<strong>and</strong>, <strong>the</strong>levelized costs in <strong>the</strong> case of Afghanistan were higher compared to Nepal. The LCOEwere varying from 0.50-0.67 USD/kWh <strong>for</strong> <strong>the</strong> plant of 25 kW <strong>and</strong> 0.34-0.47 USD/kWh<strong>for</strong> 50 kW plant. This shows that <strong>the</strong> variation of LCOE with <strong>the</strong> size of <strong>the</strong> technology isinsignificant ra<strong>the</strong>r it varies mainly with <strong>the</strong> initial capital cost <strong>for</strong>construction/installation of project, <strong>and</strong> this can vary significantly in case of MH projectsdepending upon <strong>the</strong> site specific conditions. The higher LCOE in case of Afghanistan isdue to high installation cost per kW <strong>and</strong> comparatively low average load factors.Sensitivity AnalysisSensitivity analysis gives <strong>the</strong> scenario on how <strong>the</strong> changes in particular parameter impact<strong>the</strong> cost analysis of different generation technologies. The variation of LCOE with loadfactor has analyzed in this section. The sensitivity analysis has been done <strong>for</strong> a 25 kWmicro hydro project with higher range of cost per kW.Figure 2: Variation in LCOE from MH project with change in load factor.Figure 2 shows that LCOE decreases when <strong>the</strong> load factor increases. The sensitivity ofLCOE is high with <strong>the</strong> load factor below 40%. Once load factor crosses 40%, <strong>the</strong>variation in LCOE is less significant as that of in <strong>the</strong> low load factors. Normally, <strong>the</strong>rural electrification is characterized by low load factor resulting in high LCOE. So, <strong>the</strong>productive end uses promotion in <strong>the</strong> rural electrification projects is important <strong>for</strong>making <strong>the</strong>se projects financially attractive.Risø International <strong>Energy</strong> Conference 2011 Proceedings Page 369

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