The MEC 4722 Renewable Energy Capstone Project follows the Costing process as stated in the Sustainable Energy for All (SEforALL) publication Power Health facilities - Approach, posted below:
| Powering Health Facilities - Approach |
The SEforALL standards for Costing are as follows:
A. CapEx: The up-front costs are primarily driven by the key components. In general, larger systems will have a lower average cost ($/Wp). Prices can vary significantly, based on inventory levels in-country, the development of a solar PV market, logistics costs (especially for hard to reach areas), and enabling environment factors (such as VAT and import tax exemptions). A solar PV system with storage can cost between $4/Wp to $8/Wp, though costs outside of this range are not unusual.
B. OpEx: The long-term costs, in particular for operation & maintenance, are largely driven by the cost of labour, minor spare parts, and logistics factors (i.e. the distance to the facility). Here too, country context will play a large role in determining these costs. The current lifespan of key components ranges from approx. 7-10 years (for batteries) to 20-25 years (for solar PV panels).
C. Service-based approaches: While harder to implement in emergency settings, an alternative approach is to bundle CapEx and OpEx into a long-term service contract, with performance-based payments over time. SEforALL’s report Lasting Impact: Sustainable Off-Grid Solar Delivery Models to Power Health and Education [1] details key conditions that need to be met for an intervention to be sustainable in the long-term.
OUTCOME: An overview of different costing models across different scenarios, split out between CapEx and OpEx.
A. CapEx: The up-front costs are primarily driven by the key components. In general, larger systems will have a lower average cost ($/Wp). Prices can vary significantly, based on inventory levels in-country, the development of a solar PV market, logistics costs (especially for hard to reach areas), and enabling environment factors (such as VAT and import tax exemptions). A solar PV system with storage can cost between $4/Wp to $8/Wp, though costs outside of this range are not unusual.
B. OpEx: The long-term costs, in particular for operation & maintenance, are largely driven by the cost of labour, minor spare parts, and logistics factors (i.e. the distance to the facility). Here too, country context will play a large role in determining these costs. The current lifespan of key components ranges from approx. 7-10 years (for batteries) to 20-25 years (for solar PV panels).
C. Service-based approaches: While harder to implement in emergency settings, an alternative approach is to bundle CapEx and OpEx into a long-term service contract, with performance-based payments over time. SEforALL’s report Lasting Impact: Sustainable Off-Grid Solar Delivery Models to Power Health and Education [1] details key conditions that need to be met for an intervention to be sustainable in the long-term.
OUTCOME: An overview of different costing models across different scenarios, split out between CapEx and OpEx.