IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v315y2022ics0306261922004214.html
   My bibliography  Save this article

Feasibility of rural electrification and connectivity—A methodology and case study

Author

Listed:
  • Dibaba, Henock
  • Demidov, Iurii
  • Vanadzina, Evgenia
  • Honkapuro, Samuli
  • Pinomaa, Antti

Abstract

Despite the recent development, electrification of rural sub-Saharan Africa remains a major challenge because of remote locations and the low income of the population in those areas. There is a clear need for novel approaches for addressing this challenge. This paper proposes a new method for analysing the feasibility of microgrid projects based on consumers’ expressed willingness to pay for the service in rural sub-Saharan Africa and microgrid project developers’ willingness to accept. The paper also introduces a common measurement parameter, unit of service, that combines electricity and telecommunications in one service package to establish a link between customers’ preferred price and profitability for the service provider. Further, the proposed methodology is used to analyse a study case located in rural Namibia. The results suggest that there is a price range for the service where a microgrid project can be feasible while satisfying local consumers’ willingness to pay for the service. By using the proposed methodology, microgrid developers can adequately justify their investment plan and minimize the risks of non-payments.

Suggested Citation

  • Dibaba, Henock & Demidov, Iurii & Vanadzina, Evgenia & Honkapuro, Samuli & Pinomaa, Antti, 2022. "Feasibility of rural electrification and connectivity—A methodology and case study," Applied Energy, Elsevier, vol. 315(C).
    • Handle: RePEc:eee:appene:v:315:y:2022:i:c:s0306261922004214
    DOI: 10.1016/j.apenergy.2022.119013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922004214
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arega, Tiruwork & Tadesse, Tewodros, 2017. "Household willingness to pay for green electricity in urban and peri-urban Tigray, northern Ethiopia: Determinants and welfare effects," Energy Policy, Elsevier, vol. 100(C), pages 292-300.
    2. Taale, Francis & Kyeremeh, Christian, 2016. "Households׳ willingness to pay for reliable electricity services in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 280-288.
    3. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    4. Moussa P. Blimpo & Malcolm Cosgrove-Davies, 2019. "Electricity Access in Sub-Saharan Africa [Accès à l’électricité en Afrique subsaharienne]," World Bank Publications - Books, The World Bank Group, number 31333.
    5. Abdullah, Sabah & Jeanty, P. Wilner, 2011. "Willingness to pay for renewable energy: Evidence from a contingent valuation survey in Kenya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2974-2983, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Artem Korzhenevych & Charles Kofi Owusu, 2021. "Renewable Minigrid Electrification in Off-Grid Rural Ghana: Exploring Households Willingness to Pay," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    2. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    3. Alam, Majbaul & Bhattacharyya, Subhes, 2017. "Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh," Energy, Elsevier, vol. 139(C), pages 433-446.
    4. Sievert, Maximiliane & Steinbuks, Jevgenijs, 2020. "Willingness to pay for electricity access in extreme poverty: Evidence from sub-Saharan Africa," World Development, Elsevier, vol. 128(C).
    5. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).
    6. Perera, Pradeep & Sarker, Tapan & Islam, K. M. Nazmul & Belaïd, Fateh & Taghizadeh-Hesary, Farhad, 2021. "How Precious Is the Reliability of the Residential Electricity Service in Developing Economies? Evidence from India," ADBI Working Papers 1211, Asian Development Bank Institute.
    7. Berkouwer, Susanna & Biscaye, Pierre & Hsu, Eric & Kim, Oliver & Lee, Kenneth & Miguel, Edward & Wolfram, Catherine, 2023. "Money or Power? Choosing Covid-19 aid in Kenya," Department of Economics, Working Paper Series qt77q3w4sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    8. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2021. "Impacts of Electricity Outages in Urban Households in Developing Countries: A Case of Accra, Ghana," Energies, MDPI, vol. 14(12), pages 1-26, June.
    9. Ayodele, T.R. & Ogunjuyigbe, A.S.O. & Ajayi, O.D. & Yusuff, A.A. & Mosetlhe, T.C., 2021. "Willingness to pay for green electricity derived from renewable energy sources in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    10. Berkouwer, Susanna & Biscaye, Pierre & Hsu, Eric & Kim, Oliver & Lee, Kenneth & Miguel, Edward & Wolfram, Catherine, 2023. "Money or Power? Choosing Covid-19 aid in Kenya," Energy Economics, Elsevier, vol. 127(PB).
    11. Berkouwer, Susanna B. & Biscaye, Pierre E. & Puller, Steven & Wolfram, Catherine D., 2022. "Disbursing emergency relief through utilities: Evidence from Ghana," Journal of Development Economics, Elsevier, vol. 156(C).
    12. Kim, Ju-Hee & Lim, Seul-Ye & Yoo, Seung-Hoon, 2021. "Public preferences for introducing a power-to-heat system in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    13. Xie, Bai-Chen & Zhao, Wei, 2018. "Willingness to pay for green electricity in Tianjin, China: Based on the contingent valuation method," Energy Policy, Elsevier, vol. 114(C), pages 98-107.
    14. Paravantis, John A. & Stigka, Eleni & Mihalakakou, Giouli & Michalena, Evanthie & Hills, Jeremy M. & Dourmas, Vasilis, 2018. "Social acceptance of renewable energy projects: A contingent valuation investigation in Western Greece," Renewable Energy, Elsevier, vol. 123(C), pages 639-651.
    15. Giacomo Falchetta & Nicolò Stevanato & Magda Moner-Girona & Davide Mazzoni & Emanuela Colombo & Manfred Hafner, 2020. "M-LED: Multi-sectoral Latent Electricity Demand Assessment for Energy Access Planning," Working Papers 2020.09, Fondazione Eni Enrico Mattei.
    16. Monyei, Chukwuka G. & Akpeji, Kingsley O. & Oladeji, Olamide & Babatunde, Olubayo M. & Aholu, Okechukwu C. & Adegoke, Damilola & Imafidon, Justus O., 2022. "Regional cooperation for mitigating energy poverty in Sub-Saharan Africa: A context-based approach through the tripartite lenses of access, sufficiency, and mobility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    17. Francesco Tonini & Francesco Davide Sanvito & Fabrizio Colombelli & Emanuela Colombo, 2022. "Improving Sustainable Access to Electricity in Rural Tanzania: A System Dynamics Approach to the Matembwe Village," Energies, MDPI, vol. 15(5), pages 1-17, March.
    18. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Estimating the economic value of residential electricity use in the Republic of Korea using contingent valuation," Energy, Elsevier, vol. 64(C), pages 601-606.
    19. Norton, Daniel & Hynes, Stephen, 2015. "Spatial issues arising from a value transfer exercise for environmental quality of marine waters," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212663, European Association of Agricultural Economists.
    20. Bensch, Gunther & Grimm, Michael & Huppertz, Maximilian & Langbein, Jörg & Peters, Jörg, 2018. "Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1060-1068.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:315:y:2022:i:c:s0306261922004214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.