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close this bookRural Energy and Development: Improving Energy Supply for Two Billion People (WB, 1996, 132 p.)
close this folderChapter four - Options for rural electrification
View the document(introduction...)
View the documentProgress to date
View the documentPricing and financial policies
View the documentCost-effectiveness and the choice of alternatives
View the documentCosts of grid supplies
View the documentReducing initial investment costs by using appropriate design standards
View the documentMicro-grids supplied by diesel generators
View the documentElectricity supplies from renewable energy sources
View the documentRegulatory and price reforms, unbundling, and privatization
View the documentImplication for rural electrification
View the documentApproaches

Costs of grid supplies

Table 4.4 shows the costs of extending distribution to unelectrified areas. The incremental costs of expanding grid supplies usually have the following comportents: (a) the capital and fuel costs of generation: (b) the capital costs of reinforcing the transmission and subtransmission networks; (c) the extension of medium-voltage transmission networks; and (d) the establishment of a low voltage distribution network and household connections. Such costs vary from country to country and among regions in a single country. and the costs of meeting peak demands are considerably higher. but the table illustrates how costs vary in a typical situation. Grid supplies are usually a cheaper option in areas with high load densities and high load growth near the grid.