Costing electricity supply scenarios: A case study of promoting renewable energy technologies on Rodriguez, Mauritius

Small Island Developing States (SIDS) import increasing amounts of fossil fuel to meet their rising energy demand. This places an unnecessary financial burden on their budget, as abundant Renewable Energy Sources (RES) are often available. The introduction of Renewable Energy Technologies (RETs) can harness these resources, providing sufficient electricity as well as maintaining a high degree of independence. However, one of the principle barriers to their application has been the high cost of installing them. This paper argues that the economics of instigating RETs on SIDS are potentially favourable over the application of fossil fuel technologies if the full life-cycle costs are considered. A case study conducted in 2001, modelling three alternative electricity provision scenarios on Rodrigues, Mauritius supports these assumptions. The findings are based on a comparative economic model using Discounted Cash Flow (DCF) analyses, as well as a variety of sensitivity analyses, to predict changing economic environments. This provides crucial guidance for the formulation of energy policy and planning. This work is part of a tripartite research project that connects the economics with renewable resources assessment and a multi criteria analysis investigating the social and environmental consequences to provide a transferable framework assessment of renewable energy supply options on SIDS.