Economics of Distributed Photovoltaics : An Illustration from Bangladesh
Distributed photovoltaics are a growing technology for grid electricity consumers in low- and middle-income countries due to declining costs and government support. In Bangladesh, distributed photovoltaics iare part of broader solar and consumer pr...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/191291623782775411/Economics-of-Distributed-Photovoltaics-An-Illustration-from-Bangladesh http://hdl.handle.net/10986/35769 |
| Summary: | Distributed photovoltaics are a growing
technology for grid electricity consumers in low- and
middle-income countries due to declining costs and
government support. In Bangladesh, distributed photovoltaics
iare part of broader solar and consumer programs. This study
analyzes the economics of stylized grid-connected
residential, commercial, and industrial distributed
photovoltaics in Bangladesh, considering a year of hourly
patterns of solar irradiation and electricity exchanges
between the distributed photovoltaics owners and the
electricity utilities. The economics vary between different
stakeholders—distributed photovoltaics owners, electricity
utilities, and society. From the consumers’ perspective, the
study finds that the economics of distributed photovoltaics
depends on the difference in electricity production costs
between the distributed photovoltaics and the electricity
utility, transmission and distribution loss, and feed-in
arrangements. The study also reveals that a distributed
photovoltaics do not necessarily cause loss to the national
electricity utility if they replaces expensive oil-fired
generation. From a national or societal perspective,
distributed photovoltaics are beneficial even if their
positive environmental effects are not taken into account.
The environmental benefits further improve the economics of
distributed photovoltaics. |
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