Rural electrification through mini-grids: Challenges ahead

Peters, Jörg; Sievert, Maximiliane; Toman, Michael A.

doi:10.1016/j.enpol.2019.05.016

Cited by 121 publications

(69 citation statements)

References 32 publications

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“…We do also not factor in the cost of providing energy access and stay away from assessing whether an impact, especially if it was fairly expensive to produce, can be considered a success. This is not to say that these aspects are unimportant for impact evaluations of energy access, as we know they are (e.g., Peters, Sievert, and Toman, 2019), yet these assessments are difficult to make in a transparent, replicable, and comparable way across the number of studies in our data.…”

Section: Coding Of Assessed Impactsmentioning

confidence: 88%

The need for impact evaluation in electricity access research

et al. 2020

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Universal household electrification is a key component of the United Nations Sustainable Development Goals, but the evidence base for social and economic impacts of electricity access remains unclear. Here we report results from a systematic review of impact evaluations of household electrification based on five key outcome measures. We only find 31 studies that conduct statistical hypothesis tests to assess impacts. Among these, seven draw on a randomized experiment designed for causal inference. The randomized experimental studies generate fewer positive results than observational or quasi-experimental studies, such as correlational, instrumental variable, and difference-indifferences designs. These results call for a reassessment of what we know about the impacts of household electrification. They also call for major investment in impact evaluation of electricity access using randomized controlled trials, with a particular focus on when and how energy access interventions can furnish large benefits to their intended beneficiaries. Large-scale impact evaluations using experimental methods will require close collaboration between policymakers and researchers.

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Section: Coding Of Assessed Impactsmentioning

confidence: 88%

The need for impact evaluation in electricity access research

et al. 2020

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“…Despite the economic feasibility of extending the electricity grid to under-served areas in some situations, minigrids may be better suited to address the low electrification rates and electrification challenges in areas with scattered households, low populations, and low demand potential [1, 3,4]. A vast majority of the rural households without adequate electricity access would be better serviced with standalone systems or minigrids [5].…”

Section: Introductionmentioning

confidence: 99%

Renewable Minigrid Electrification in Off-Grid Rural Ghana: Exploring Households Willingness to Pay

Korzhenevych

Owusu

2021

Sustainability

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Renewable energy minigrids hold significant prospects for Africa’s energy sector and its economic development in general. The government of Ghana has established pilot renewable minigrids in five off-grid communities as a testing ground for the electrification of over 600 existing rural communities that cannot be electrified via the national grid. Although there is evidence on willingness to pay (WTP) values for renewable-generated electricity in some developing countries, little is known about households’ WTP for renewable-based electricity in Ghana and, in particular, about renewable minigrids for rural electrification. This paper provides one of the first WTP estimates for renewable-based electricity for rural electrification in a developing economy context such as Ghana. Using data from a contingent valuation survey undertaken in all five pilot renewable minigrid project communities, we found that rural households are willing to pay an average of 30 GHC/month (≈5 USD/month) for high-quality renewable-powered electricity services, which is twice the amount they are currently paying based on the Uniform National Tariffs. The hypothetical bias is addressed by conducting a survey among active users of the minigrids. The starting point bias is reduced by employing random starting bids. The respondents are willing to pay between 9 and 11% of their discretionary incomes to cover the cost of accessing reliable renewable-powered electricity in the rural, off-grid communities in Ghana. The paper concludes by discussing the policy implications of these findings regarding the development of tariff regulations and business models for renewable minigrids in the rural, off-grid sector.

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“…However, the electrification solutions for these areas have historically focused on increasing electricity coverage, without considering the projects' technical sustainability, which makes it possible to maintain a continuous electricity supply [2][3][4][5]. Moreover, there are no requirements and planning criteria that allow the integration of technical support services in the operation of these solutions to ensure security in the supply [4,6] A solution to guarantee sustainability in rural electrification is microgrids [5][6][7]. Operation by off-grid rural electrification represents several technical and market challenges related to integrating variable generation sources, distributed control systems, storage, and active demand participation [3][4][5][6]8,9].…”

Section: Introductionmentioning

confidence: 99%

Business Model Proposal for Energy Transition towards Operational and Economic Sustainability for Rural Electrification: Colombian Case

et al. 2021

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This study focuses on strategic development for incorporating distributed energy resources into the electrical off-grid power system operator, or isolated microgrids, to guarantee sustainability and energy transition by an adapted business model. A business model canvas was adapted to allow sustainability in an off-grid Colombian microgrid by integrating distributed energy resources with voltage and frequency control as ancillary services; support services that maintain the stability and security of energy supply in isolated rural electrification. The business model canvas was studied with government funds, who cover all the costs associated with making the model attractive and sustainable in a Colombian context, and some proposed technical incentives to analyze the profitability and guarantee the sustainability of rural electrification. The proposed modified business model canvas offers a useful tool for supporting microgrid market scheme development to include distributed energy resources in a Colombian case. The model showed the importance of motivating investors and increasing profitability by including a value proposition based on technical contributions that benefit the microgrid operation; by around 80%. These benefits can solve some stability problems, including ancillary services, like frequency and voltage support, using distributed energy resources. Finally, integrating rural electrification in off-grid zones into the national energy regulation system is vital for incentivizing sustainable projects in rural zones, such as microgrids.

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Rural electrification through mini-grids: Challenges ahead

Abstract: The working papers published in the series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily reflect those of the editors.

Cited by 121 publications

References 32 publications

The need for impact evaluation in electricity access research

The need for impact evaluation in electricity access research

Renewable Minigrid Electrification in Off-Grid Rural Ghana: Exploring Households Willingness to Pay

Business Model Proposal for Energy Transition towards Operational and Economic Sustainability for Rural Electrification: Colombian Case

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