IMPACT OF RURAL ELECTRIFICATION ON SOCIAL STANDARDS IN UNDER DEVELOPED AREAS A dissertation submitted to the Department of Electrical Engineering, University of Moratuwa in partial fulfillment of the requirements for the Degree of Master of Engineering by MAGODAGEROHANJAYAWARDENA Supervised by Prof. Ranjit Perera Department of Electrical Engineering University of Moratuwa, Sri Lanka 2007 87852 D E C L A R A T I O N T h e w o r k s u b m i t t e d i n t h i s d i s s e r t a t i o n i s t h e r e s u l t o f m y o w n i n v e s t i g a t i o n , e x c e p t w h e r e o t h e r w i s e s t a t e d . I t h a s n o t a l r e a d y b e e n a c c e p t e d f o r a n y d e g r e e , a n d i s a l s o n o t b e i n g c o n c u r r e n t ! , : s u b m i t t e d f o r a n y o t h e r d e g r e e . M . R . J ; I y f t w a r d e n a 2 1 - 0 2 ( 2 0 @ 7 I e n d o r s e t h e d e c l a r a t i o n b y t h e c a n d i d a t e . P r o f . R a n j i t P e r e r a C o n t e n t s D e c l a r a t i o n A b s t r a c t A c k n o w l e d g e m e n t L i s t o f F i g u r e s L i s t o f T a b l e s C h a p t e r s 1 . I n t r o d u c t i o n 1 . 1 B a c k g r o u n d 1 . 2 B a c k g r o u n d o f t h e P r o j e c t 1 . 3 H i s t o r y o f R u r a l E l e c t r i f i c a t i o n i n B r i e f 1 . 4 B r i e f D e s c r i p t i o n o f t h e S t u d y 1 . 5 R u r a l E l e c t r i f i c a t i o n o f S r i L a n k a I . 6 M o t i v a t i o n 1 . 7 G o a l s 2 . P r o b l e m S t a t e m e n t 2 . 1 I d e n t i f i c a t i o n o f t h e P r o b l e m 2 . 2 O b j e c t i v e s o f t h e S t u d y 2 . 3 I m p o r t a n c e o f t h e S t u d y 2 . 4 C o n c e p t u a l i z a t i o n o f t h e P r o b l e m a n d D e v e l o p m e n t o f H y p o t h e s i s 2 . 5 M e t h o d o l o g y 2 . 6 L i m i t a t i o n o f t h e S t u d y 3 . P r o p o s e d S o l u t i o n 3 . 1 A l g o r i t h m o f t h e M o d e l 4 . T h e o r e t i c a l D e v e l o p m e n t 4 . 1 P r e p a r a t i o n o f E s t i m a t e 4 . 2 F i n a n c i n g M e t h o d s o f R u r a l E l e c t r i f i c a t i o n P r o j e c t 4 . 3 P r o j e c t P l a n n i n g a n d I m p l e m e n t a t i o n 4 . 4 L o a d G r o w t h M o d e l 5 . A p p l i c a t i o n o f t h e P r o p o s e d M e t h o d 5 . 1 S a m p l e S c h e m e f o r C o s t B e n e f i t C a l c u l a t i o n 5 . 2 C o l l e c t i o n o f D a t a 6 . R e s u l t s a n d A n a l y s i s 6 . 1 S a m p l e C a l c u l a t i o n U s i n g t h e M o d e l 6 . 2 S u m m e r y o f C a l c u l a t i o n 6 . 3 H u m a n D e v e l o p m e n t I n d e x 6 . 4 A p p l i c a t i o n 7 . C o n c l u s i o n s I I I V v V I V I 1 - 7 I 2 4 5 6 7 8 - 1 2 8 9 9 1 0 I I 1 2 1 3 - 1 7 1 4 -. . 1 8 - 3 1 1 8 2 0 2 2 2 3 3 2 - 5 0 " I -'~ " I -'~ 5 1 - 6 3 5 1 5 7 6 0 6 3 6 4 - 6 6 R e f e r e n c e s 6 7 A p p e n d i c e s 6 8 A p p e n d i x 1 : Q u e s t i o n n a i r e R e l e v a n t t o t h e E n e r g y S c h e m e 6 8 A p p e n d i x 2 : A n s w e r s t o Q u e s t i o n n a i r e 7 1 A p p e n d i x 3 : C E B R e v e n u e A n a l y s i s f o r P r o p o s e d T a r i f f R e v i s i o n - 2 0 0 6 I 0 0 A p p e n d i x 4 : O p e r a t i n g E x p e n d i t u r e - 2 0 0 7 I 0 I A p p e n d i x 5 : C o s t P r i c e s f o r K e r o s e n e & D i e s e l I 0 2 I l l A c k n o w l e d g e m e n t F i r s t I p a y m y s i n c e r e g r a t i t u d e t o P r o f e s s o r R a n j i t P e r e r a , w i t h o u t w h o s e g u i d a n c e , s u p p o r t a n d e n c o u r a g e m e n t t h i s s t u d y w o u l d h a v e n o t e n d e d w i t h t h i s f i n a l d i s s e r t a t i o n . I t a k e t h i s o p p o r t u n i t y t o e x t e n d m y s i n c e r e t h a n k s t o M r . M a x w e l l T i s s e r a f o r m e r A G M D i s t r i b u t i o n a n d c u s t o m e r s e r v i c e s M r . K . K . A . C . S a m a r a s i n g h e D G M ( E n e r g y M a r k e t i n g ) o f C e y l o n E l e c t r i c i t y B o a r d ( C E B ) f o r e n c o u r a g e m e n t & c o - o p e r a t i o n e x t e n d e d . I a l s o t h a n k e n g i n e e r s i n t h e d i s t r i b u t i o n p l a n n i n g b r a n c h f o r p r o v i d i n g m e w i t h t h e d e t a i l s o f A D B s c h e m e s a n d a r e a E n g i n e e r s a n d E l e c t r i c a l s u p e r i n t e n d e n t s o f H o r a n a a n d A v i s s a w e l l a o f C E B f o r p r o v i d i n g t h e d e t a i l s o f e l e c t r i f i e d c o n s u m e r s . I t i s a g r e a t p l e a s u r e t o r e m e m b e r t h e k i n d c o - o p e r a t i o n e x t e n d e d b y t h e c o l l e a g u e s i n t h e p o s t g r a d u a t e p r o g r a m m e a n d a l l t h e f a m i l y m e m b e r s a n d f r i e n d s f o r s u p p o r t i n g m e f r o m s t a r t t o e n d o f t h e c o u r s e . v L i s t o f F i g u r e s F i g u r e 1 . 1 1 . 2 3 . 1 4 . 1 5 . 1 5 . 2 5 . 3 5 . 4 5 . 5 5 . 6 5 . 7 5 . 8 6 . 1 G r a p h i c a l r e p r e s e n t a t i o n o f p r o g r e s s o f R u r a l E l e c t r i f i c a t i o n E l e c t r i f i e d h o u s e h o l d s A l g o r i t h m f o r c o s t b e n e f i t r a t i o s L o a d G r o w t h M o d e l M a p o f S r i L a n k a H o u s e s i n E t a k a n d a J a n a p a d a y a S c h e m e l a y o u t E t a k a n d a J a n a p a d a y a H o u s e s i n U d u g a l a k a n d a S c h e m e l a y o u t U d u g a l a k a n d a H o u s e s i n H i n g u r a l a D e h i g a h a l a n d a S c h e m e l a y o u t H i n g u r a l a D e h i g a h a l a n d a S c h e m e l a y o u t K a n a m p e l l a e s t a t e S i n g l e l i n e d i a g r a m H i g u r a l a D e h i g a h a l a n d a L i s t o f T a b l e s T a b l e I . C E B r u r a l e l e c t r i f i c a t i o n p r o j e c t s 4 . 1 S t a n d a r d c o n s t r u c t i o n c o s t 4 . 2 E s t i m a t e d c o s t o f t h e s a m p l e s c h e m e s 5 . 1 Q u a l i t a t i v e s u m m a r y E t a k a n d a J a n a p a d a y a 5 . 2 Q u a n t i t a t i v e s u m m a r y E t a k a n d a J a n a p a d a y a 5 . 3 Q u a l i t a t i v e s u m m a r y U d u g a l a k a n d a 5 . 4 Q u a n t i t a t i v e s u m m a r y U d u g a l a k a n d a 5 . 5 Q u a l i t a t i v e s u m m a r y H i n g u r a l a D e h i g a h a l a n d a 5 . 6 Q u a n t i t a t i v e s u m m a r y H i n g u r a l a D e h i g a h a l a n d a 5 . 7 Q u a l i t a t i v e s u m m a r y K a n a m p e l l a E s t a t e 5 . 8 Q u a n t i t a t i v e S u m m a r y K a n a m p e l l a E s t a t e 6 . 1 S u m m a r y o f c a l c u l a t i o n s 6 . 2 A s s e s e d D a t a R e q u i r e d f o r c a l c u l a t i o n o f H O I V I P a g e 3 3 1 4 2 3 3 3 3 5 3 6 3 9 4 0 4 3 4 4 4 8 5 1 5 1 9 2 0 3 7 3 8 3 1 4 2 4 5 4 6 4 9 5 0 5 7 6 1 Abstract Most of the Rural Electrification Schemes constructed by the Ceylon Electricity Board are found to be not economically viable. In this study a new methodology has been developed to find out the economic viability of a Scheme. Four sample schemes were selected and through a survey important data was collected for the case study. Using these data Economic cost benefit and financial cost benefit ratios are calculated. These ratios are related to Human Development Ind. By the model developed in this study varying the Human Development Index values, the values for Economic Cost Benefit Ratio and Financial cost Benefit Ratio could be improved. This study contains following aspects as well. 1. To examine the effectiveness of the RE projects of the CEB 2. To examine the impact of Re Projects and improving living standard of the rural people 3. To suggest alternative ways for improvement SOCIO economic standards of rural people. This methodology could be used to find out the Economic viability and development of any rural electrification scheme and could be extended to the development of a village through other services other than electricity.