Photovoltaic projects for decentralized power supply in India: A financial evaluation

The present study concentrates on photovoltaic (PV) projects for providing decentralized power supply in remote locations in India. Results of a techno-economic evaluation are presented. Some PV projects in the capacity range 1-110kW(p), that have either been implemented or are under implementation, have been considered. An analysis of the capital cost of the PV projects and sub-systems has been undertaken. Levelized unit cost of electricity (LUCE) has been estimated for eighteen select locations situated in different geographical regions of the country. The LUCE is found to vary in the range of Rs. 28.31-59.16/kW h (US$ 0.65-1.35/kW h) for PV projects in the capacity range 1-25 kW(p). In view of high unit cost of electricity from PV projects, need for financial incentives has been examined from the perspective of users. A sensitivity analysis has also been undertaken. (c) 2005 Published by Elsevier Ltd.