1. Diesel generators are quite common in African regions because of their durability and low upfront cost:...
Question:
1. Diesel generators are quite common in African regions because of their durability and low upfront cost: just $250/kW for a device that can run almost all the time! Compute the LCOE of a 2 kW diesel system that is 15% efficient. Assume they use a 2 kW system to meet peak demand, can buy diesel fuel at $1.2/Liter, and use a CCF of 0.1. Describe your approach to the problem in about 100 words (1 point), and give your answer (1 point) in dollars per kWh. Compare the LCOE of the diesel system to that of the solar + battery system described earlier in this section (1 point).
Part 2: For a self-financing village, upfront costs are very important, especially since the per-capita income in Mali is about USD $700 per year. Compare the capital cost of the diesel system to the capital cost of the solar + battery system described earlier in this section (1 point). Then, state in about 100 words which system you would expect to be more common in this region and why (2 points). Consider how a local villager would see both the ecological and economic costs.
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese