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NRECA International routinely conducts feasibility studies that are generally short term in duration (six months or less), and whose scope includes several specific tasks to be completed for one project. Feasibility studies are used to determine which potential community or region would be the ideal candidate for a rural electrification program. In such a case, NRECA International would conduct preliminary due diligence to determine potential viability by assessing project costs based on engineering design and construction, revenues based on load forecasts that include consumer energy consumption and willingness to pay studies, and the potential consumer surplus that would underpin project investment.
In Assam, India, NRECA International recently developed and implemented an innovative rural electrification initiative. The project, which was funded by the Asian Development Bank, was developed in two stages. NRECA International recommended an organizational approach based on developing separate utilities responsible for all aspects of system construction, operation and maintenance. The program would be based on establishing, commissioning, and supporting localized community-owned electric distribution systems similar to the cooperative society model adopted by Bangladesh. NRECA International staff carried out field investigations of three potential pilot project sites, including an assessment of existing distribution infrastructure, service quality, consumer willingness to pay for electricity, economic benefit analysis and development of a comprehensive geographic information system (GIS) to facilitate capital cost estimates for system expansion.
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