Discussion » inferred costs calculation
I'm reading the Power Africa roadmap and it is referring to inferred costs of a connection (the cost for providing enough electricity into the grid so that actual connections get power). On their website they say that their calculation is based on a definition by the WB.
For my work for the European Commission I would like to know how these indeffed costs are calculated. Can anybody assist?
What I did (on my own account) is calculate what large MW plants cost (hydro, solar etc), what the high voltage lines cost per km, distribution grids etc and added that all up, taking maximum expected loads etc into account. So I wonder what kind of calculations are made by the WB.
If anyone could elaborate on that, please.
I hope you are doing well.
I think we might be able to help here... The following document (WBG - 2014) explains the methodology used by the bank to calculate "inferred connections" on page 4. I have uploaded it on the Forum, and you can access it directly using the following link: WBG (2014) - Livewire - Measuring the Results of World Bank Lending in the Energy Sector.pdf
Thanks to Sudeshna Ghosh Banerjee for writing it, and pointing it out to me.