When does unreliable grid supply become unacceptable policy? Costs of power supply and outages in rural India

Despite frequent blackouts and brownouts, extension of the central grid remains the Indian government׳s preferred strategy for the country׳s rural electrification policy. This study reports an assessment that compares grid extension with distributed generation (DG) alternatives, based on the subsidies they will necessitate, and costs of service interruptions that are appropriate in the rural Indian context. Using cross-sectional household expenditure data and region fixed-effects models, average household demand is estimated. The price elasticity of demand is found to be in the range of −0.3 to −0.4. Interruption costs are estimated based on the loss of consumer surplus due to reduced consumption of electric lighting energy that results from intermittent power supply. Different grid reliability scenarios are simulated. Despite the inclusion of interruption costs, standalone DG does not appear to be competitive with grid extension at distances of less than 17 km. However, backing up unreliable grid service with local DG plants is attractive when reliability is very poor, even in previously electrified villages. Introduction of energy efficient lighting changes these economics, and the threshold for acceptable grid unreliability significantly reduces. A variety of polices to promote accelerated deployment and the wider adoption of improved end-use efficiency, warrant serious consideration.     

Solar photovoltaic-based home electrification system for rural development in Nigeria: domestic load assessment

To alleviate the growing need for power in rural households not connected to grid electricity in Nigeria, this paper has assessed the domestic load demand of rural areas which will serve as input data in the design of photovoltaic-based rural home electrification systems, and also assist governments in their rural electrification planning framework. The result of this study shows that rural households in Nigeria will require 2324.5 Wh/day or 850.8 kWh/yr to meet their basic power requirements for such loads as lighting and electronic appliances—radios and televisions. It is recommended that solar photovoltaic-based rural home electrification application should be encouraged by the three tiers of government; Local, State, and Federal in Nigeria, especially for those rural households without access to a grid supply.     

Modeling and optimizing a sub-centralized LED lamps provision system for rural communities

Providing clean and sustainable energy for all is an ever elusive challenge, especially encountered in remote and poor rural areas. Cost-effective solutions have been found through renewable energy systems (RES) which, when combined with specialized products like rechargeable lamps using light emitting diodes (LED), can provide the basic energy needs (lighting) of rural homes, while replacing fossil-fuel based energy sources (e.g. kerosene lamps). The investigation presents an LED lamps provision system which circumvents the cost and technical challenges that currently hamper LED lamps diffusion into communities. Based on an actual rural island case (Pangan-an Island, Philippines), a sub-centralized lamp rental and charging system was mathematically modeled and analyzed (analytically and numerically) to identify the optimal states and policies, along with the effects of certain parameters, which promote financial viability and supply sustainability. It was found that a dynamically optimized lamp(s) purchase policy yields better financial returns than a statically optimized policy. Furthermore, it was realized that a sub-centralized lamps rental approach can serve as a complementary energy provision system for rural electrification projects by providing for the lower-tier energy demand market of low income users within a community.     

Solar lanterns or solar home lighting systems – Community preferences in East Timor

Access to electrification in rural areas of East Timor is extremely limited with as few as 5% of rural households connected to electricity. The government of East Timor intends to increase rural access to electricity significantly in the coming decade. The introduction of small PV systems is envisaged for many households in the most remote areas. Several agencies have piloted the introduction of small solar home systems (SHS) and solar lanterns. In the Railaco sub-district of East Timor, some 1000 households have experience of using either SHS and/or solar lanterns and are in a unique position to indicate a preference regarding these forms of PV lighting technology. This paper reports on a survey of 76 households in Railaco investigating experience with PV lighting systems. Results of the survey indicate a strong preference by users for SHS rather than lanterns. The preference for SHS arose from a range of factors including: a perception of better light quality; ability to illuminate the whole house; reduced risk of damage to the PV equipment; and longer duration of nightly operation. The research indicates that where a single PV lighting system is provided, users are likely to prefer SHS to solar lanterns.     

A light left in the dark: The practice and politics of pico-hydropower in the Lao PDR

The article describes the widespread use of an estimated 60,000 low-head pico-hydropower turbines and well-developed networks of supply and support in the Northern part of the Lao People's Democratic Republic (Lao PDR). This apparent widespread use is contrasted with the policy narratives of key actors in the government, multilateral organisations and the private sector which show an often simplified and overly negative attitude towards pico-hydropower. Based on empirical research carried out in three upland districts and the capital, Vientiane, the paper critically investigates the apparent disjuncture between policy and practice by placing pico-hydropower within the broader political context of rural electrification in the Lao PDR. It is argued that the neglect of pico-hydropower and other off-grid household electrification technologies is a result of an endemic lack of information on which to base policy decisions, the orientation of the government to facilitate large scale foreign investment in large hydropower dams, the universal applicability of solar home systems, and the broader state agenda of centralisation and control over service provision to remote upland areas.     

Relative deprivation and energy poverty: when does unequal access to electricity cause dissatisfaction?

In the least developed countries, unequal access to infrastructure is a major form of inequality. We examine the conditions under which unequal electricity access causes dissatisfaction. The question is important because grievances could prompt demands for policy change. We argue that feelings of relative deprivation both cause dissatisfaction and create hope for improvement. Empirically, we analyze household survey data from five East African countries. All else constant, households living close to a power line are less satisfied with their lighting solution but also have more hope for improvement. Because household lighting is the most important use for electricity in a poor household, this supports the relative deprivation hypothesis. Households that are reminded of their deprivation by the power line are both less satisfied and believe something can be done to solve the problem. To inform policy, we also show that the proximity of a power line decreases the household's interest in solar home systems as an alternative to grid electrification, whereas valuation for solar lanterns seems to be increasing. Copyright © 2014 John Wiley & Sons, Ltd.     

Energy poverty in rural Bangladesh

Energy poverty is a well-established concept among energy and development specialists. International development organizations frequently cite energy-poverty alleviation as a necessary condition to reduce income poverty. Several approaches used to measure energy poverty over the past 20 years have defined the energy poverty line as the minimum quantity of physical energy needed to perform such basic tasks as cooking and lighting. This paper uses a demand-based approach to define the energy poverty line as the threshold point at which energy consumption begins to rise with increases in household income. At or below this threshold point, households consume a bare minimum level of energy and should be considered energy poor. This approach was applied using cross-sectional data from a comprehensive 2004 household survey representative of rural Bangladesh. The findings suggest that some 58 percent of rural households in Bangladesh are energy poor, versus 45 percent that are income poor. The findings also suggest that policies to support rural electrification and greater use of improved biomass stoves might play a significant role in reducing energy poverty.     

Initiative for 100% rural electrification in developing countries: Case study of Senegal

Sub-Saharan Africa has the lowest access to electricity in the World. In Senegal, less than 25% of the rural population benefit of electricity service. Solar energy offers an important potential to Senegal with over 3000 h of sunlight a year. This is a real opportunity to generalize the access to electricity. But, the efforts to bridge the gap must be diversified and completed. We approach the problem of rural electrification with a different point of view. Grid expansion and centralized solutions may be adequate for villages with a population organized in high-density of habitations. Small size villages or those with highly dispersed population may need different propositions because of cost. These regions will not be the priority of electrification programs. Furthermore, this rural population is characterized by its low income and saving. Such a conjuncture suggests the opportunity of a service based fees model for access to electricity. On the basis of a fees-for-service model, individual standalone photovoltaic systems may be a more appropriate solution to cover the priority needs of lighting and mobile phones battery charge for telecommunication. We present a pilot project in a village of Senegal to support the model and demonstrate its feasibility.     

A review of the potential benefits and risks of photovoltaic hybrid mini-grid systems

Photovoltaic hybrid mini-grid systems (PVHMS) are expected to play a major role in facilitating rural electrification in the developing world, however these systems still face significant barriers to adoption. The technology occupies a middle ground of electrification options – between traditional network extension and individual home systems, possessing elements of each yet also their own distinctive characteristics. Given this, and their relatively limited application to date, such systems are the focus of a growing body of literature. This work has highlighted a range of potential benefits and risks associated with the technology. However, there still hasn't been a comprehensive review of these documented benefits and risks; an understanding of which is crucial for informed project investment and implementation decision making. This paper presents a preliminary review of the existing literature to identify claimed and demonstrated benefits and risks. The most commonly identified benefits are those that are easy to measure: reduced cost and provision of improved electrical services. Other benefits such as the social or environmental benefits are less commonly demonstrated, but are frequently claimed. The major risks identified included incorrect system sizing due to load uncertainty, challenges related to community integration, equipment compatibility issues, inappropriate business models and risks associated with geographical isolation. For all of these types of risks, associated mitigation strategies were also identified in the literature. Further research including industry surveys and additional case studies will be required to validate what has been observed in the literature to date, and identify progress as the technology matures, costs fall and stakeholders learn from these previous experiences.     

Availability of kerosene to rural households: a case study from India

A majority of the rural population in India continues to rely on kerosene for domestic lighting. Measures to promote inter-fuel substitution in domestic lighting by promoting rural electrification have met with partial success. Electrified households in rural areas also use kerosene as a back up fuel because of erratic and poor electricity supply. Kerosene is subsidised, and an extensive network has been put in place for its distribution. Both these measures are meant to facilitate access and affordability by the poor. However, this is not the case at the grass-roots level. Further, use of traditional lighting devices has also had an adverse affect on the quality of life of the people for these devices are inefficient, emit smoke, and give poor-quality light. In this the poorest of the poor, who have limited choices and options are worst affected.This paper, taking the example of a TERI (the Energy and Resources Institute) case study in the state of Rajasthan, analyses the issues of access and availability of kerosene to rural masses, especially the poor. It highlights the existing problems with the kerosene distribution system and examines the subsidy-based, supply driven approach to distribution in terms of facilitating access to the poor. It, accordingly, puts forward specific policy measures for improving access to kerosene and its more efficient use as a lighting fuel in rural India.     

Rural energy survey and scenario analysis of village energy consumption: A case study in Lao People’s Democratic Republic

In developing countries, providing all citizens an access to modern forms of energy is among the central energy policy objectives, as the linkages between modern energy services and human development are widely recognized. This paper presents in a scenario analysis of rural energy consumption, how energy services in different sectors of a village economy contribute to the achievement of the UNDP Millennium Development Goals. In a rural village in Lao People’s Democratic Republic, household energy demand and energy uses were surveyed immediately prior to the electrification of the village. Based on the situation preceding electrification of the village, the development of village electrification was studied by simulating the village energy system, accounting for all village energy uses but transportation. To study the potential development of electricity demand in the village, three scenarios were constructed using the LEAP model: “residential demand”, “income generation” and “public services”. Energy demand in each scenario was analyzed with reference to the Millennium Development Goals.     

Changing energy profiles and consumption patterns following electrification in five rural villages, South Africa

Following the democratic transition in South Africa in the early 1990s the government has implemented a widespread electrification programme, as well as introduced a free basic electricity allowance as a means of poverty alleviation. Yet there are limited longitudinal studies on the impacts of the introduction of electricity on the patterns of household energy use, and even more so in the neglected rural sector. This study reports on the patterns of household energy use in five rural settlements in 1991 and again in 2002. Results indicate a changing pattern of energy use for lighting and powering entertainment appliances, more specifically from dry-cell batteries and paraffin to electricity. Yet for thermal needs, most notably cooking, fuelwood has remained the most widespread fuel, and the amount used per month has not changed, despite increasing scarcity of wood in the local environment. There has been an increase in the proportion of households purchasing fuelwood as opposed to collecting their own. Overall, the mean total number of fuel types used per household has increased, indicating that electricity is simply viewed as an additional energy, rather than an alternative. Yet, electricity accounted for approximately 60% of expenditure on energy sources in 2002, despite the government's policy of a free basic allowance of 5–6 kWh per month. This has implications for energy supply costing, as well as the poverty alleviation dimensions of the whole programme.     

Mini-grid based electrification in Bangladesh: Technical configuration and business analysis

This paper presents a local level study of a village off-grid system in Bangladesh. It applies an integrated methodology that identifies the demand in the off-grid village context using alternative scenarios. The techno-economic analysis of the optimal off-grid system architecture is then presented using HOMER software. Three energy resources are considered, namely solar energy, wind and diesel fuel. The optimal configuration suggested for the scenarios consists of diesel generators for the basic level of demand and PV-diesel hybrid for higher demand and reliable supply scenarios. The cost of electricity per kWh remains high for the basic level of supply and decreases as the system size increases. However, the capital and asset replacement costs increased considerably for bigger systems. The business case is then analysed for each scenario and it was found that it is practically impossible to reach grid price parity even with full capital cost subsidy, indicating significant amount of operating cost subsidy requirement that makes the larger systems financially unsustainable. Moreover, the small mini-grid system for the basic level of supply emerges as a cheaper option than providing the consumers with solar home systems. But the monthly electricity bill will become unaffordable for most consumers when demand restrictions are removed. Accordingly, the paper suggests a mini-grid based electricity supply to provide the basic level of provision alongside productive energy use during off-peak hours as the starting point. If the business develops and the demand improves, the system can be expanded subsequently using appropriate technology combinations.     

Financial viability and eco-efficiency of the solar home systems (SHS) in Bangladesh

To analyze financial viability as well as eco-efficiency of the solar home systems in Bangladesh six case studies are carried out in some selected villages of Chhatak upazila in Bangladesh where NGOs like Grameen Shakti and BRAC are delivering and servicing solar home systems. Financial viability of the SHS is measured by comparing prior expenditure (before implementing SHS) for kerosene, automobile battery and other conventional sources. Eco-efficiency refers to an estimator that seeks to maximize the effectiveness of financial viability while counting their costs on the environment. The financial viability and eco-efficiency for six different cases of SHS are calculated and compared. This provides information about the relative performance of the product in six different situations. Solar electrification results a number of income generating new green employments for the rural community in Bangladesh. Although financial viability of SHS is sensitive to kerosene subsidy, this study reveals that the SHS is financially more attractable when it is used for small income generating activities other than used only for lighting purpose. However, almost in all cases this technology is indispensable for improving environmental standard and eco-efficiency of the rural community.     

Rural photovoltaic electrification program in Jordan

The photovoltaic (PV) technology potential for Jordan is high, based on the fact that many remote and isolated sites are located far away from the national electric grid and cannot be connected to it in the near future. Therefore, a rural PV electrification program—driven by quality-of-life improvement for the users—was launched in Jordan in 2002. An important element of the program is the access of low-income, rural consumers to essential electricity.This paper discusses and analyses the first stage of this program that is the electrification of a remote and small Jordanian village. Nine PV solar home systems (SHS) were installed in this village in order to provide lighting and power for radio and television.Feed back from the users of the installed systems indicates that the PV based electricity has been providing very satisfactory service to the consumers, and that it is an appropriate technology suitable for dissemination in the rural Jordanian areas.     

Rural household energy consumption pattern in the disregarded villages of Bangladesh

Energy is one of the most important ingredients required to alleviate poverty and realize socio-economic and human development, which is directly interconnected to the prominence of life in rural areas. An extensive survey on household energy consumption pattern interrelating socio-economic and demographic factors was carried out in the disregarded villages of Bangladesh using stratified random sampling technique of 120 households. This paper focuses on household energy consumption, various combinations of fuels and their expenditure in the study area. Biomass, kerosene, electricity, LPG and candle were found as the energy carrier used in the rural households in this study. The study shows that 92% households use biomass, 28% LPG, 89% kerosene, 78% electricity and 27% candle as fuel types. It was found that 56% households collected biomass from their own homesteads and/or agricultural lands. Bamboo, branches, cow dung, firewood, rice husk, leaves & twigs and straw were found as the biomass for household energy use. Average monthly household expenditure for total energy was US$ 9.67 (SE, 0.31) per month while the total monthly income of the household was US$ 123 (SE, 2.53). The ratio of the total monthly energy expenditure to the total monthly income was 7.86%. The study will be helpful to understand the energy consumption system and its expenditure in the rural areas of Bangladesh and to the policy formulation for energy production, consumption and utilization.     

The demand for coal among China's rural households: Estimates of price and income elasticities

China's residential sector has experienced rapid electrification and gasification. Among rural households, however, coal still accounts for a large share of energy use, especially in the north. Use of coal for cooking and heating brings large health and pollution risks. From a theoretical viewpoint, economic tools such as taxes and subsidies have the potential to play a crucial role in addressing this issue. In this paper, a provincial-level dataset is used to estimate the price and income elasticities of aggregate coal demand by rural households. We find that coal is a non-Giffen inferior good for the rural household sector. This means that future income growth may help to induce switching from coal. Demand is becoming more price elastic as rural incomes grow. We also find that rural residential coal demand is more price- and income-responsive in the south than the north, perhaps because of fewer substitution options in the north. Our results provide benchmarks and parameters for policy simulation research.     

Assessment of access to electricity and the socio-economic impacts in rural areas of developing countries

The purpose of this study is to reveal relations between access to electricity and advancement in a socio-economic condition in rural areas of developing countries. Recently, multi-dimensional aspects of poverty, for example, economy, education, and health, has been increasingly focused on, and access to modern energy such as electricity is one possible solution. As a case study, we have analyzed unelectrified rural areas in Assam state, India. We have developed an energy-economic model in order to analyze the possibility of electrification through dissemination of electric lighting appliances as well as applied multiple regression analysis to estimate the socio-economic condition, a literacy rate above 6 years old, in the areas. As a result of the case study, the household electrification rate, the 1000 km² road density, and sex ratio have been chosen as the explanatory variables of the literacy rate. Moreover, the model analysis shows that complete household electrification will be achieved by the year 2012. In combination with the multiple regression and model analysis, the literacy rate in Assam may increase to 74.4% from 63.3%.     

The impact of geography on energy infrastructure costs

Infrastructure planning for networked infrastructure such as grid electrification (or piped supply of water) has historically been a process of outward network expansion, either by utilities in response to immediate economic opportunity, or in response to a government mandate or subsidy intended to catalyze economic growth. While significant progress has been made in access to grid electricity in Asia, where population densities are greater and rural areas tend to have nucleated settlements, access to grid electricity in Sub-Saharan Africa remains low; a problem generally ascribed to differences in settlement patterns. The discussion, however, has remained qualitative, and hence it has been difficult for planners to understand the differing costs of carrying out grid expansion in one region as opposed to another. This paper describes a methodology to estimate the cost of local-level distribution systems for a least-cost network, and to compute additional information of interest to policymakers, such as the marginal cost of connecting additional households to a grid as a function of the penetration rate. We present several large datasets of household locations developed from satellite imagery, and examine them with our methodology, providing insight into the relationship between settlement pattern and the cost of rural electrification.     

Economic viability of solar home systems: Case study of Bangladesh

Bangladesh is richly endowed with solar energy. Solar Photovoltaic (PV) system seems to be an appropriate form of renewable energy despite the monsoon type of climate in Bangladesh. The most attractive use of solar home system (SHS) in Bangladesh is the lighting system. People in rural Bangladesh predominantly use kerosene oil based lamps for illuminating their homes at night. Dry cell batteries are used for radio and gradually car batteries are becoming popular for running TV near grid areas where the charging facilities are available. The cost of kerosene and charging cost of battery are quite high and solar home system can compete with them in this particular field. Six cases were analyzed to find out the economic sustainability of the solar home systems at selected villages in Gazipur district, Bangladesh during October 2004–December 2004 and also questionnaire survey method was followed to collect data. This study reveals that the solar home system is financially attractive for small rural business and household lighting with entertainment. Only for household lighting purpose the system is not financially and economically viable without considering social benefits.