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Diffusion of solar PV in East Africa: What can be learned from private sector delivery models?

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  • Charles Muchunku
  • Kirsten Ulsrud
  • Debajit Palit
  • Wim Jonker‐Klunne

Abstract

Solar photovoltaic (PV) will play the leading role in addressing off‐grid electricity access; it can be applied almost anywhere and used in a wide range of applications for households, businesses, institutions and communities. However, to fully exploit this opportunity, off‐grid markets that need these solutions need to be effectively penetrated. This article focuses on delivery models for off‐grid solar PV solutions and how they address barriers such as awareness, acceptance, access and affordability. It is based on a survey of 13 solar PV businesses in East Africa, supported by the Energy and Environment Partnership Programme and implementing the following delivery models: Retail, Pay‐As‐You‐Go (PAYG), Consumer financing, Mini‐grid and Fee‐for‐service. The survey is complemented by supporting literature and incorporates experiences from a University of Oslo research project on a village scale energy access model in Kenya and case studies of solar PV mini‐grids in Senegal and India. Experiences from implementation of the different models are analyzed and generic descriptions provided. The models are compared to illustrate their suitability and effectiveness for delivering different levels of energy access. Retail and PAYG models are identified as effective at reaching scale, while the mini‐grid and fee‐for‐service models demonstrate good potential to affordably and sustainably deliver a wider range of electricity access. The limitations of conventional rural electrification strategies are also discussed and the potential to incorporate some delivery models into electrification programs assessed. This article is categorized under: Photovoltaics > Economics and Policy Photovoltaics > Systems and Infrastructure Energy and Development > Economics and Policy Solar Heating and Cooling > Economics and Policy

Suggested Citation

  • Charles Muchunku & Kirsten Ulsrud & Debajit Palit & Wim Jonker‐Klunne, 2018. "Diffusion of solar PV in East Africa: What can be learned from private sector delivery models?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(3), May.
    • Handle: RePEc:bla:wireae:v:7:y:2018:i:3:n:e282
    DOI: 10.1002/wene.282
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    1. Ondraczek, Janosch, 2013. "The sun rises in the east (of Africa): A comparison of the development and status of solar energy markets in Kenya and Tanzania," Energy Policy, Elsevier, vol. 56(C), pages 407-417.
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    3. Sesan, Temilade & Uduka, Unico & Baker, Lucy & Ugwu, Okechukwu & Eleri, Ewah & Bhattacharyya, Subhes, 2024. "Exploring the connections between mini-grid market regulation and energy access expansion: The case of Nigeria," Energy Policy, Elsevier, vol. 184(C).
    4. David Ockwell & Robert Byrne & Joanes Atela & Victoria Chengo & Elsie Onsongo & Jacob Fodio Todd & Victoria Kasprowicz & Adrian Ely, 2021. "Transforming Access to Clean Energy Technologies in the Global South: Learning from Lighting Africa in Kenya," Energies, MDPI, vol. 14(14), pages 1-24, July.
    5. Sheridan, Steve & Sunderland, Keith & Courtney, Jane, 2023. "Swarm electrification: A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).
    6. Palm, Alvar & Lantz, Björn, 2020. "Information dissemination and residential solar PV adoption rates: The effect of an information campaign in Sweden," Energy Policy, Elsevier, vol. 142(C).
    7. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    8. John Byrne & Peter D. Lund, 2019. "Sustaining our common future: Transformative, timely, commons‐based change is needed," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(1), January.
    9. David Ockwell & Joanes Atela & Kennedy Mbeva & Victoria Chengo & Rob Byrne & Rachael Durrant & Victoria Kasprowicz & Adrian Ely, 2019. "Can Pay-As-You-Go, Digitally Enabled Business Models Support Sustainability Transformations in Developing Countries? Outstanding Questions and a Theoretical Basis for Future Research," Sustainability, MDPI, vol. 11(7), pages 1-21, April.
    10. Stritzke, Susann & Trotter, Philipp A. & Twesigye, Peter, 2021. "Towards responsive energy governance: Lessons from a holistic analysis of energy access in Uganda and Zambia," Energy Policy, Elsevier, vol. 148(PA).
    11. Leila Aghlimoghadam & Sadegh Salehi & Hans-Liudger Dienel, 2022. "A Contribution to Social Acceptance of PV in an Oil-Rich Country: Reflections on Governmental Organisations in Iran," Sustainability, MDPI, vol. 14(20), pages 1-23, October.
    12. Heinemann, G. & Banzer, F. & Dumitrescu, R. & Hirschhausen, C.v. & Neuhoff, M.E. & Ogechi Nwadiaru, V., 2022. "Transforming electricity access by replacing back-up generators with solar systems: Recent trends and evidence from Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    13. Jeuland, Marc & Babyenda, Peter & Beyene, Abebe & Hinju, Gabriel & Mulwa, Richard & Phillips, Jonathan & Zewdie, Samuel A., 2023. "Barriers to off-grid energy development: Evidence from a comparative survey of private sector energy service providers in Eastern Africa," Renewable Energy, Elsevier, vol. 216(C).

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