Economic evaluation of small-scale photovoltaic hybrid systems for mini-grid applications in far north Cameroon

A comparison between photovoltaic hybrid systems (PVHS), standalone photovoltaic (PV) and standalone diesel generator options is performed using the net present value (NPV) technique. A typical village mini-grid energy demand of 7.08 kWh/day is considered in the computation of energy costs and breakeven grid distances. A first sensitivity analysis is conducted using remote diesel prices of 0.8 €/l, 0.98 €/l, 1.12 €/l, 1.28 €/l with a PV module cost of 7.5 €/Wp. A second sensitivity analysis is also done using PV module costs of 5.25 €/Wp, 6 €/Wp, 6.75 €/Wp, 7.5 €/Wp with a diesel price of 1.12 €/l. The energy cost for the diesel option was found to be 0.812 €/kWh at a diesel fuel price of 1.12 €/l. The sensitivity analyses showed that minimum energy costs were attained in PVHS at renewable energy fractions in the range 82.6–95.3%. In the second sensitivity analysis the energy costs and breakeven grid distances were found to be in the ranges 0.692–0.785 €/kWh and 5.1–5.9 km respectively. For a PV module cost of 5.25 €/Wp, the lowest energy cost for the PVHS option was 0.692 €/kWh at a final renewable energy fraction of 95.3% with the diesel generator hours being 37 h compared to 2075 h in the standalone diesel generator option. Consequently, a 30% reduction in custom duties and taxes on imported PV modules and sub-systems would increase the use of small-scale and climate friendly PV mini-grids in remote areas of far north Cameroon that have an annual insolation of at least 5.55 kWh/m 2/day.