Potential application of renewable energy for rural electrification in Malaysia

Energy poverty and lack of electricity in rural areas exacerbate the poverty of the developing countries. In Malaysia, 3.8% of the population lives below the poverty line and most of them are settled in rural areas. The electricity coverage in poor states is about 79% in comparison with 99.62% in Peninsular Malaysia. The renewable energy sources can be considered the best alternative to reduce the energy poverty of the rural areas where the grid extension through a difficult terrain and thick jungle is not possible or economic. In this study, the potential for applying renewable sources – solar, wind and hydropower – for rural electrification is investigated, especially in the poorest States. A comparative study on rural electrification policies, in order to have community approval, appropriate siting and financial benefits for the rural community, while considering the three categories of social, institutional and economic issues, is also examined. Finally, the Malaysian policies of rural electrification by applying renewable sources are explained. It is found that in Malaysia, with a maximum solar radiation of about 6.027 kWh/m² per day in Sabah and 5.303 kWh/m² per day in Sarawak, the potential for applying solar energy for electrification is too high. However, the potential for micro-hydropower in Sabah and Sarawak is found to be 3182 kW and 6317 kW through 18 and 22 sites, respectively.     

Alternatives to grid extension for rural electrification: Decentralized renewable energy technologies in Vietnam

This paper examines the economic viability of stand-alone, household-sized renewable energy technologies, namely wind generator and solar PV for application in remote and rural areas of Vietnam. Three reference technologies are chosen. These are two solar PV systems of 130 and 100 Wp for solar conditions in the North and the South, respectively, and one 150 W wind turbine. It is found for all regions that levelized costs of PV energy are lower than the cost of energy from gasoline gen-set, and are cost-competitive with grid extension, especially for areas with low load density and low number of households to be electrified. Regarding wind energy, the viability is dependent on the location due to the wide variation of wind resource to topography. However, in locations with proper resources, wind energy is even more cost-competitive than solar PV. Thus, the use of either wind generator or solar PV is economically feasible in rural villages and remote areas of Vietnam. Policy recommendations for promoting the market development of renewable energy technologies are discussed in the final section of the paper.     

Financing off-grid rural electrification: Country case Nepal

More than 61% of the total population of Nepal has no access to electricity. The majority is poor and live in rural areas. In recent years, rural electrification has had high priority in government policies, and micro hydro and solar PV have been the most commonly adopted off-grid technologies. The financial mix in the off-grid rural electrification is generally characterized by subsidy, equity and credit. In this paper, we analyze how rural electrification has been funded and the impact of subsidy policies on the renewable energy market, focusing on the projects implemented under the ‘subsidy policy 2000’. Our study is based on official data obtained from authorities in Nepal and a survey carried out among private supply and installation companies, NGOs and financial institutions. The study shows that awareness levels in adopting RE-technologies and willingness of people to access and pay for electricity have increased significantly. However, there is a huge financial gap between the cost of electrification and the affordability. Bridging this gap is a crucial issue that needs to be addressed for the smooth expansion of rural electrification in the country.     

Sustainability assessment of renewable energy projects for off-grid rural electrification: The Pangan-an Island case in the Philippines

Renewable energy systems (RESs) have been promoted for rural electrification as an answer to the growing energy needs of communities while simultaneously satisfying environmental and resource scarcity problems. These off-grid systems however have several challenges in the perspective of sustainability due to the technically and financially weak recipients and users of the projects. There is still, however, less detailed understanding how the technical and economic aspects of the projects can properly match the social aspects to promote sustainability. This paper aimed to further understand the challenges and social impacts of rural electrification projects using RES through a case study of a centralized off-grid solar plant in the Philippines. The study used multiple correspondence analysis (MCA) to identify essential user attributes which explain the users’ electricity consumption behaviors. The community cooperative had difficulties maintaining the facility in the long term due to financial and capacity related challenges. A holistic approach dealing with the technical, economic and social aspects in developing RES projects promote sustainability.     

Evaluation of choices for sustainable rural electrification in developing countries: A multicriteria approach

Rural electrification (RE) can be modelled as a multifactorial task connected to a large number of variables: decision makers need to choose the appropriate options by considering not only the techno-economic competitiveness but also socio-cultural dynamics and environmental consequences, making the task intricate. Many rural electrification projects have failed due to lack of attention to the issues beyond financial and technical dimensions. This paper presents a standardized approach for decision making concerning the extension of electricity services to rural areas. This approach first determines whether the supply provision should be grid expansion or off-grid on the basis of levelized cost of delivered electricity. If the grid expansion is found nonviable over off-grid options then a multicriteria decision aiding tool, SMAA-2 (Stochastic Multicriteria Acceptability Analysis), will evaluate off-grid technologies by aggregating 24 criteria values. While applying this approach, the delivered costs of electricity by the grid in remote areas within the 1–25 km distances vary in a range of 0.10–7.85 US$/kW h depending on the line lengths and load conditions. In the off-grid evaluation, the solar PV (photovoltaic) and biogas plants are found as the most preferable alternatives with 59% and 41% acceptability in their first rank, respectively.     

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.     

Decision-making between a grid extension and a rural renewable off-grid system with hydrogen generation

Most populations in rural Africa have no access to electricity, in this study, a comparative analysis between grid extension and the implementation of renewable off-grid hybrid power system is carried out. The objective of the study is to determine the best feasible option. Napier, a farming village in the Western Cape province of South Africa was selected as the site for the comparative analysis and HOMER PRO software was used to develop an optimal system using the wind and solar resources of the selected site. The load profile considered in the analysis includes lighting, cooking and hot water demands. The best feasible option is determined based on the Net Present Cost of each feasible scenario. Sensitivity analysis on the current cost and the projected cost of hydrogen storage w conducted to observe the impact of the cost of hydrogen storage on the renewable off-grid system cost of energy.     

Modelling an off-grid integrated renewable energy system for rural electrification in India using photovoltaics and anaerobic digestion

This work describes the design optimisation and techno-economic analysis of an off-grid Integrated Renewable Energy System (IRES) designed to meet the electrical demand of a rural village location in West Bengal – India with an overall electrical requirement equivalent to 22 MWh year⁻¹. The investigation involved the modelling of seven scenarios, each containing a different combination of electricity generation (anaerobic digestion with biogas combined heat and power (CHP) and photovoltaics) and storage elements (Vanadium redox batteries, water electrolyser and hydrogen storage with fuel cell). Micro-grid modelling software HOMER, was combined with additional modelling of anaerobic digestion, to scale each component in each scenario considering the systems' ability to give a good quality electricity supply to a rural community. The integrated system which contained all of the possible elements – except hydrogen production and storage presented the lowest capital ($US 71 k) and energy cost ($US 0.289 kWh⁻¹) compared to the scenarios with a single energy source. The biogas CHP was able to meet the electrical load peaks and variations and produced 61% of the total electricity in the optimised system, while the photovoltaics met the daytime load and allowed the charging of the battery which was subsequently used to meet base load at night.     

Lessons for effective renewable electricity policy from Denmark,Germany and the United Kingdom

Renewable electricity development has taken different paths across countries, underpinned by different policy frameworks. Although there has been a convergence to two main mechanisms, the feed-in tariff (FIT) and the renewable portfolio standard (RPS), much debate remains focused on the effectiveness of each for meeting multiple objectives, especially energy security, CO₂ reduction and economic development. Although most countries share these objectives, their choice of policy varies, explained largely by national context. Denmark, Germany and the United Kingdom stand out as lead countries based on their experiences with the FIT and RPS and provide important lessons for other nations. The evidence from these three, as examined in this paper, suggests that policy design and commitment are key factors for success. Denmark and Germany have 10 years of experience with FITs and are world leaders in the field of renewable energy (RE) development. They are closest to meeting their RE targets and have been able to achieve several other objectives, especially industrial development and job creation, and in the case of Germany, CO₂ emission reductions. Although other factors have been important in determining policy choice and implementation in these countries, the particular design features of the FIT allow it to address the needs of the sector.     

The potential of renewable energy technologies for rural development in Lesotho

The potential and utilization of renewable energy technologies (RETs), and energy analysis in Lesotho with emphasis on the contribution of solar energy technologies (SETs) is presented. The heavy reliance of the country on imported fossil fuel coupled with the growing demand for electricity and declining wood fuel supplies call for alternative sources of energy. Taking the average global solar radiation that ranges from 15 to 20 MJ/m² and cognizant of the short falls of other renewable energy sources in Lesotho, this paper focuses on the application of solar energy and associated developmental issues. The paper provides a statistical analysis of the energy demand and identifies areas of further growth for SETs. Various application areas of solar energy and their contribution to development in Lesotho together with future prospects for use of solar energy are also discussed. An analysis of the relative merits of using photovoltaic (PV) devices over other renewable energy sources in Lesotho is presented. It is argued that with proper economic support and utilization of efficient RETs, developing countries like Lesotho can meet their basic energy demands and alleviate the problems of energy shortages.     

Rural electrification in an imperfect world: A case study from Mozambique

Electricity is universally recognized as a necessary, although not sufficient, requirement for social and economic development. However, increasing access to electricity in developing countries has proven to be difficult and expensive, particularly in rural areas. In this article, we analyze the dynamics of the relationship between electricity and socio-economic development by means of a cost–benefit analysis of a typical rural electrification project in Mozambique, assessing the impact of electricity on households, education, agro-business, commerce, and the public sector. We show that rural electrification can be commercially viable and cause structural transformation in rural areas within a short period of time. Finally, illustrated by the actual policy practice in Mozambique, we argue that low institutional quality is a key barrier to promote increased access to electricity for the poor.     

The value of cooperatives in rural electrification

The electricity sectors of many developing countries underwent substantial reforms during the 1980s and 1990s, driven by global agendas of privatization and liberalization. However, rural electrification offered little by way of market incentives for profit-seeking private companies and was often neglected. As a consequence, delivery models for rural electrification need to change. This paper will review the experiences of various rural electrification delivery models that have been established in developing countries, including concessionary models, dealership approaches and the strengthening of small and medium-sized energy businesses. It will use examples from the USA, Bangladesh and Nepal, together with a detailed case study of a Nepali rural electric cooperative, to explore the role that local cooperatives can play in extending electricity access. It is shown that although there is no magic bullet solution to deliver rural electrification, if offered appropriate financial and institutional support, socially orientated cooperative businesses can be a willing, efficient and effective means of extending and managing rural electricity services. It is expected that this paper will be of particular value to policy-makers, donors, project planners and implementers currently working in the field of rural electrification.     

The Brazilian experience of rural electrification in the Amazon with decentralized generation - The need to change the paradigm from electrification to development

There are at least 607 thousand households in the Brazilian Amazon that need to be attended with some form of regular electricity service. These households are not attended by the electricity sector through its electricity distribution companies and most of them have some form of precarious decentralized electricity generation that is not registered or regulated in the institutional framework. Diverse initiatives were taken by Brazilian government to attend these household through alternatives that relied on locally available renewable energy. This paper accesses this initiatives of rural electrification in the Brazilian Amazon. First an overview of the problems of rural electricity are discussed and its specificities in the Brazilian Amazon. Then the Brazilian institutional framework that organizes the decentralized electricity generation is described with its various limitations. The diverse initiatives undertaken to attend the rural communities in the Amazon since the 1990s are described, as well as how these initiatives are linked to the policies for rural electrification. The results shows that it can be inferred that sole market mechanisms are not sufficient to guarantee economic sustainability of these projects. This can be one of the reasons why traditional electricity distribution companies showed the lack of interest in promoting rural electrification with other means than grid extension. The most successful projects had financed efforts to integrate the generation of electricity into local development initiatives in order to guarantee sustainability and used substantial part of funding for local mobilization and organization. It needs a paradigm chance by treating these initiatives as local development initiatives and promoting alternative ways for its implementation through partnership between local new actors in the electricity sector and government and implementing policy on a local municipal level.     

Field analysis of solar PV-based collective systems for rural electrification

This article analyses the long-term performance of collective off-grid photovoltaic (PV) systems in rural areas. The use of collective PV systems for the electrification of small medium-size villages in developing countries has increased in the recent years. They are basically set up as stand-alone installations (diesel hybrid or pure PV) with no connection with other electrical grids. Their particular conditions (isolated) and usual installation places (far from commercial/industrial centers) require an autonomous and reliable technology. Different but related factors affect their performance and the energy supply; some of them are strictly technical but others depend on external issues like the solar energy resource and users’ energy and power consumption. The work presented is based on field operation of twelve collective PV installations supplying the electricity to off-grid villages located in the province of Jujuy, Argentina. Five of them have PV generators as unique power source while other seven include the support of diesel groups. Load demand evolution, energy productivity and fuel consumption are analyzed. Besides, energy generation strategies (PV/diesel) are also discussed.     

The delivery of low-cost,low-carbon rural energy services

The provision of both electrical and mechanical energy services can play a critical role in poverty alleviation for the almost two billion rural users who currently lack access to electricity. Distributed generation using diesel generators remains a common means of electricity provision for rural communities throughout the world. Due to rising fuel costs, the need to address poverty, and consequences of global warming, it is necessary to develop cost efficient means of reducing fossil fuel consumption in isolated diesel microgrids. Based on a case study in Nicaragua, a set of demand and supply side measures are ordered by their annualized costs in order to approximate an energy supply curve. The curve highlights significant opportunities for reducing the costs of delivering energy services while also transitioning to a carbon-free electrical system. In particular, the study demonstrates the significant cost savings resulting from the implementation of conventional metering, efficient residential lighting, and electricity generation using renewable energy sources.     

The determinants of rural electrification: The case of Bihar,India

This paper explores intra-state disparity in access to electricity and examines the determinants of electrification at the village level in Bihar, one of the underdeveloped states in India. Our field survey of 80 villages in 5 districts conducted in 2008–09 found that 48 villages (60%) are electrified when using the definition of electrification that a village is electrified if any one household in the village is connected to electricity. In the processes of electrification, approximately 40% of villages have been electrified in recent years. The econometric analyses demonstrate that location is the most important determinant of a village's electricity connection. Another important finding is that with the rapid progress of rural electrification under the recent government program and the tendency to connect the villages that are easily accessible, the collective bargaining power of the village, which used to significantly affect the process of electrification, has lost influence. This adversely affects remote villages. In order to extend electricity supplies to remote and geographically disadvantaged villages, the government needs to consider other options for sustainable electricity supply, such as decentralized distribution of electricity rather than the conventional connection through the national/local grids.     

Multi-objective assessment of rural electrification in remote areas with poverty considerations

Rural electrification with renewable energy technologies (RETs) offers several benefits to remote areas where diesel generation is unsuitable due to fuel supply constraints. Such benefits include environmental and social aspects, which are linked to energy access and poverty reduction in less-favored areas of developing countries. In this case, multi-objective methods are suitable tools for planning in rural areas. In this study, assessment of rural electrification with renewable energy systems is conducted by means of goal programming towards fuel substitution. The approach showed that, in the Non-Interconnected Zones of Colombia, substitution of traditional biomass with an electrification scheme using renewable energy sources provides significant environmental benefits, measured as land use and avoided emissions, as well as higher employment generation rates than diesel generation schemes. Nevertheless, fuel substitution is constrained by the elevated cost of electricity compared to traditional biomass, which raises households’ energy expenditures between twofold to five times higher values. The present approach, yet wide in scope, is still limited for quantifying the impact of energy access improvements on poverty reduction, as well as for the assessment of energy system's technical feasibility.     

A new tailored scheme for the support of renewable energies in developing countries

Historically the promotion of renewable energy technologies in isolated areas has involved international donors or governments subsidising the initial capital investment. This paper proposes an alternative support mechanism for remote villages based on the generation of renewable electricity. This communication presents an evaluation of the Renewable Energy Premium Tariff (RPT) scheme, a locally adapted variation of the Feed-in Tariff tailored for decentralised grids of developing countries. The RPT scheme stimulates the deployment of renewable energy technologies by paying for renewable electricity generated. A good-quality performance is secured since the support is given based on the electricity produced by renewables, not for the initial capital investment.     

Energy access problem of the poor in India: Is rural electrification a remedy?

India accounts for a third of the world's population without access to electricity and about 40% of those without access to modern energy. Such a situation exists despite several initiatives and policies to support poor households. Alarmed by the gravity of the situation, the government has recently announced an ambitious programme of rural electrification. This paper looks into the energy access situation of India and argues that rural electrification alone is unlikely to resolve the energy access problem because of low penetration of electricity in the energy mix of the poor.     

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%.