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Annex 2 Economic and Financial Comparisons of Rural Energy Alternatives

By The World Bank

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Book Id: WPLBN0000057813
Format Type: PDF eBook
File Size: 0.1 MB
Reproduction Date: 2005
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Title: Annex 2 Economic and Financial Comparisons of Rural Energy Alternatives  
Author: The World Bank
Volume:
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Historic
Publication Date:
Publisher: The World Bank

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Bank, T. W. (n.d.). Annex 2 Economic and Financial Comparisons of Rural Energy Alternatives. Retrieved from http://hawaiilibrary.net/


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Economics

Excerpt
The economic cost analyses presented in Chapters 3 and 4 were calculated using a spreadsheet model (in EXCEL, version 5.0) which computes discounted cash flows for rural energy systems providing equivalent levels of service. -- 2. The economic analysis was performed from the country?s perspective and indicates which alternatives best manage national resources in meeting energy requirements. All financial transfers (e.g., duties, taxes, etc.) are removed and economic (i.e., shadow) prices are used rather than market prices. -- 3. The financial analysis was performed from the customer?s perspective and indicates customers? outlays for receiving energy services. Unlike an economic analysis, costs considered in a financial analysis are based on market prices including taxes and duties, subsidy and tax benefits, and debt servicing. ENERGY REQUIREMENTS -- 4. The first step in performing the economic and financial analyses is to ensure that the compared rural energy alternatives provide equivalent levels of energy service to residential, commercial, and industrial customers. -- 5. For rural residential loads, there are generally two types of service which are cost effectively served with electricity: lighting and appliance loads (rural energy requirements for cooking, space heating, etc. are better served with other forms of energy). In addition to incandescent and fluorescent electric light bulbs, lighting can be provided with candles, flashlights, and/or kerosene lamps (pressurized or wick). The analysis in Chapter 3 defines lighting service in terms of the number of hours of ?task? lighting (e.g., for reading, sewing, etc.) and ?area? lighting (courtesy lighting for both interior and exterior). Electric appliance loads include radios, televisions, and fans and have been defined in terms of energy use (watt-hours (Wh) per day, month, or year).

 

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