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Rural electrification in sub-Saharan Africa with innovative energy policy and new financing models

Author

Listed:
  • Fan Yang

    (University of Delaware)

  • Ming Yang

    (International Fund for China’s Environment)

Abstract

This paper discusses how the 630 million sub-Saharan Africa (SSA) people can be electrified with new government policy, new renewables, and innovative business models. These initiatives are translating the ambitious goals of Sustainable Development Goal 7 (SDG7) on energy and the United Nations Framework Convention on Climate Change Conference of the Parties 2015 Paris Agreement. The Paris Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise in this century well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 °C. The objective of this paper is to evaluate the feasibility and cost-effectiveness to electrify the 630 million people within the Paris Agreement. Economic status and willingness to pay for electricity services by the poor are briefly analyzed for four new business models. Cost-effectiveness analyses on technologies are undertaken. The results show that a private investment-based financial model is the most effective and environmentally friendly in rural electrification for the poorest households in SSA. The new policy, new renewable energy technologies, and financing models are shaping contemporary climate strategies that facilitate investment in clean energy, spur community economy, enhance national energy security, and improve global environment.

Suggested Citation

  • Fan Yang & Ming Yang, 2018. "Rural electrification in sub-Saharan Africa with innovative energy policy and new financing models," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(6), pages 933-952, August.
    • Handle: RePEc:spr:masfgc:v:23:y:2018:i:6:d:10.1007_s11027-017-9766-8
    DOI: 10.1007/s11027-017-9766-8
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    Citations

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    Cited by:

    1. Kang, Jia-Ning & Wei, Yi-Ming & Liu, Lan-Cui & Han, Rong & Yu, Bi-Ying & Wang, Jin-Wei, 2020. "Energy systems for climate change mitigation: A systematic review," Applied Energy, Elsevier, vol. 263(C).
    2. Ogundiran Soumonni & Kalu Ojah, 2022. "Innovative and mission‐oriented financing of renewable energy in Sub‐Saharan Africa: A review and conceptual framework," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(1), January.
    3. George Kyriakarakos & Athanasios T. Balafoutis & Dionysis Bochtis, 2020. "Proposing a Paradigm Shift in Rural Electrification Investments in Sub-Saharan Africa through Agriculture," Sustainability, MDPI, vol. 12(8), pages 1-19, April.
    4. Konneh, Keifa Vamba & Masrur, Hasan & Konneh, David A. & Senjyu, Tomonobu, 2022. "Independent or complementary power system configuration: A decision making approach for sustainable electrification of an urban environment in Sierra Leone," Energy, Elsevier, vol. 239(PD).
    5. Maria Federica Cordova & Andrea Celone, 2019. "SDGs and Innovation in the Business Context Literature Review," Sustainability, MDPI, vol. 11(24), pages 1-14, December.
    6. Raad Al-Tal & Muntasir Murshed & Paiman Ahmad & Abdelrahman J. K. Alfar & Mohga Bassim & Mohamed Elheddad & Mira Nurmakhanova & Haider Mahmood, 2021. "The Non-Linear Effects of Energy Efficiency Gains on the Incidence of Energy Poverty," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    7. Andrea Cabanero & Lars Nolting & Aaron Praktiknjo, 2020. "Mini-Grids for the Sustainable Electrification of Rural Areas in Sub-Saharan Africa: Assessing the Potential of KeyMaker Models," Energies, MDPI, vol. 13(23), pages 1-31, December.
    8. Mukisa, Nicholas & Manitisa, Mele Sikimeti & Nduhuura, Paul & Tugume, Erick & Chalwe, Chanda Karen, 2022. "Solar home systems adoption in Sub-Saharan African countries: Household economic and environmental benefits assessment," Renewable Energy, Elsevier, vol. 189(C), pages 836-852.

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