Rural electrification cost including transmission and distribution losses and investments

A procedure incorporating transmission and distribution (T&D) costs in the electricity supply cost to the rural load centers in India is proposed. The energy supply costs to the rural loads include the capacity and operating costs of generation, transmission, and distribution. These costs are compared with the costs of energy supplies from renewable sources of energy for their economic viability. A method that determines the contribution of rural loads to the system´s peak demand is suggested. Due to low load density and high T&D losses in the rural areas, the costs are higher for rural loads than for urban loads. The cost comparison is performed for four categories of rural loads-water pumping. LT industries, domestic/commercial, and street lighting. The comparison includes the hill districts in relation to plains and electrified and unelectrified villages