A study on the utilisation of small-scale hydropower for rural electrification in Malawi

Taulo, John Loti

A study on the utilisation of small-scale hydropower for rural electrification in Malawi

Thesis / Dissertation

2007

Abstract

This study explores the potential of utilising small-scale hydropower as an alternative source of rural electrification in Malawi. Approximately 7.5% of the country's population has access to electricity. In rural areas, the electricity access rate is 0.8%. A number of factors such as the cost of infrastructure, dispersed nature of the population, low consumption and poor load factors have prevented the majority of the rural population from getting connected to the national electricity grid. The study seeks to answer a key question such as ''what is the potential of utilising smallscale hydropower to increase the lectrification level and reduce green house emissions in Malawi?" An ex ante study has been conducted in Nkolokosa village, to estimate the energy consumption, income levels and willingness to pay. Using the relationship between number of households in that village and estimated peak demand, a regression model to forecast future electricity demands has been derived. The capital cost of such a rural electrification project, unit cost of generation, and unit cost of electricity to the user are analysed. Emission reductions for green house gases have been estimated. A preliminary economic analysis of the cost of supplying power to the village has been presented. The study results indicate that small-scale hydropower would be a favourable option. The results show that providing 85kWh/year of electricity per household increases the national electrification level by 2.3%. About 230,000 people in rural areas would have access to electricity. A typical 40 kW small-scale hydropower plant would serve about 110 households. This corresponds to about one fifth of total number of households found in a typical village in Malawi. The specific construction cost per kW is MWK 2,216,992.86 (US$15,835.66). The net present value was found to be MWK 4,490,389.08 with an 8% discount rate, and the economic rate of return (EIRR) was 5.98%. The benefit cost ratio was 6.25. The break- even tariff is MWK 44.80 per kWh. The average willingness to pay is MWK 5.58/kWh. The project would deliver 192,337 kWh/year of electricity and result in avoided emissions of 59.62 tons CO2/year. The results show that significant increase in electrification using small-scale hydropower alone is not achievable. However, the evaluation seems quite promising and, with some refined costing at each potential site, small-scale hydropower projects should be implemented.

Keywords

Mechanical Engineering

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