Techno-economic feasibility of grid connected solar PV system in Bangladesh

Abstract

A techno-economic feasibility analysis is done for 500 kW grid connected solar photovoltaic (PV) system at a northern location of Bangladesh. HOMER and RETScreen computer tools and monthly average solar radiation data from NASA is used for this study. The unit electricity production cost is found to be 14.51 BDT (Bangladeshi Taka) based on project lifetime 20 years and 10% discount rate. It is also found that the unit cost varies between 15.25 BDT and 14.10 BDT, using the monthly highest and lowest solar radiation at different locations in Bangladesh. Considering the selling price of electricity 10 BDT/kWh with 5% electricity escalation rate annually to the grid, the IRR, equity payback and benefit-cost ratio are found to be around 5.6%, 13.1 years and 0.68 respectively without considering any clean energy facilities. The total annual greenhouse gas reduction is estimated to be 658 tons.