The Sustainability of Decentralised Renewable Energy Projects in Developing Countries: Learning Lessons from Zambia

Abstract

Decentralised renewable energy (RE) systems such as solar PV mini-grids (MG) are considered to be a cornerstone for the strategic achievement of the UN’s energy access goals in the developing world. Many of these systems implemented however face substantial technical, financial and social sustainability challenges which are also a recurring theme in the relevant literature. MG analyses however often lack detailed technical or financial data or apply ‘silo-approaches’ as a comprehensive review of MG case study literature presented in this article reveals. Consequently, this study aims to enhance the understanding of RE MG sustainability in the developing context based on the integrated evaluation of the technical, financial and social dimensions of MG operation through empirical data from community surveys on energy use from Uganda and Zambia and two in-depth MG case studies from Zambia. By presenting detailed technical and financial data in combination with energy consumer perception, the study aims to close existing data gaps on sustainable RE MG operation and offers an approach to evaluate and optimise the operational sustainability of an MG in its individual local context. The article finds that the complex rural community ecosystem is a central, but yet undervalued determinant of MG sustainability in rural developing contexts. The mismatch between energy affordability and MG tariffs threatens MG sustainability and the scaling of energy access projects if not addressed specifically during project development and implementation. Consequently, the article calls for a strategic inclusion of community-ecosystem parameters and MG planning based on realistic energy affordability levels and an added value approach that includes dynamic MG financing mechanisms and targeted measures to generate added value through energy consumption as integral parts of RE MG projects.

Results-Based Financing (RBF) for Modern Energy Cooking Solutions: An Effective Driver for Innovation and Scale?

“…Currently, clean cooking RBFs remain mainly donor-driven. National governments only play a minor role in developing and implementing RBFs, as seen by the limited focus on modern energy cooking solutions in SSA's national policy agendas compared to overall energy access [9]. The political awareness for supporting cleaner cooking frameworks and an enabling environment has not yet reached the levels of overall energy access, despite the severity of the negative health impacts created by cooking with 'dirty' fuels at the current scale, nor is it yet largely embedded within wider energy access strategies pursued by governmental stakeholders or foreign donors (although there are growing efforts to see clean cooking gain greater priority on international agendas, which is reflected, for example, in the preparations for this year's High Level Dialogue on Energy.…”

“…It must also be noted that access to financing is continuing to be a key challenge in the clean cooking sector [18]. Currency risks are generally a key challenge for project financing in developing markets [9]. This is especially valid for RBFs if the disbursement of the incentive is staggered and stretched over a certain timeline as it is connected to the achievement of certain milestones.…”

“…Understanding a complex set of inter-related factors is key to facilitate the transition to clean cooking. Among them are energy and appliance affordability [7,9], access to modern cooking devices and alternative fuels, including electricity [7,8], and an enabling environment, including national policies and strategies [10][11][12] which constitute critical barriers or drivers of that transition.…”

Renewable and Sustainable Energy: Current State and Prospects

“…In developing countries, decentralized renewable energy systems such as mini-solar grids (MG) play and will play an important role. Stritzke and Jain [20] believe that RES in developing countries is facing major technical, financial, and social challenges in terms of sustainable development. The research conducted by the authors aimed to understand the sustainable development of RE MG in a developing context based on an integrated assessment of the technical, financial, and social dimensions of the exploitation of the ME through empirical data from community surveys on energy consumption from Uganda and Zambia and two other in-depth case studies MG from Zambia.…”

Sizing solar-based mini-grids for growing electricity demand: Insights from rural India

“…There is a lack of mini-grid sizing tools considering demand evolution over time (Stevanato et al 2020). Additionally, the financial, technical, and operational sustainability of mini-grids remain to be demonstrated (Stritzke andJain 2021, Bandi et al 2022).…”