Author : Saakshi Chauhan 1
Date of Publication :24th August 2017
Abstract: It has been widely observed, especially in the Indian scenario, that development projects (road construction, energy infrastructure, etc.) which require large investment are usually implemented without considering alternate scenarios/solutions while other technologies/mechanisms are available. This study incorporates the use of Cost Benefit Analysis in order to ascertain the importance of determining the feasibility and efficiency of an energy project in a remote location of the Himalayas. The focus is upon electrification of remote villages which are located in challenging environments and difficult mountain terrain. The village Khati (Bageshwar district, Uttarakhand, India) is 20 kilometres far from the electricity distribution sub-station (village Karmi) and inaccessible by road, till date, and is located above 2210amsl. Net benefits from utilization of transmitted energy from sub-station was compared with a hypothetical situation of net benefits generated from utilization of same amount of energy being supplied from a solar power plant located in the village. The net benefit for the two scenarios has been calculated for a period of 25 years with the help of Net Present Value method. Benefits were much greater (more than Rs 2300 thousand) while having a decentralized local solar plant than the regular supply of transmission from centralized electricity grid. This study demonstrates the importance of feasibility analysis in such alternate scenarios especially in executing developmental projects in remote locations having difficult terrain and unstable climatic and environmental conditions
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