ADB and the government should have evaluated the cost efficiency of renewable energy-based power generation in remote regions. Based on the total cost of each of the subprojects which included design, engineering, construction, project management, and social safeguards compliance), the average cost of 1 MW of power generation in 2013 is $2.7 million, considerably higher than diesel-based generation at $1 million per MW. However, the cost of $2.7 million per MW does not factor in the feed-in tariff for renewable energy and the longer life span of renewable energy plants compared with diesel generators. Additionally, the health and environmental benefits accrued from renewable energy use are much higher than those of diesel.
Renewable Energy Development