The Economics of Renewable Energy Expansion in Rural Sub-Saharan Africa
Accelerating development in Sub-Saharan Africa will require massive expansion of access to electricity -- currently reaching only about one-third of households. This paper explores how essential economic development might be reconciled with the need to keep carbon emissions in check. The authors develop a geographically explicit framework and use spatial modeling and cost estimates from recent engineering studies to determine where stand-alone renewable energy generation is a cost effective alternative to centralized grid supply. The results suggest that decentralized renewable energy will likely play an important role in expanding rural energy access. But it will be the lowest cost option for a minority of households in Africa, even when likely cost reductions over the next 20 years are considered. Decentralized renewables are competitive mostly in remote and rural areas, while grid connected supply dominates denser areas where the majority of households reside. These findings underscore the need to de-carbonize the fuel mix for centralized power generation as it expands in Africa.
Summary: | Accelerating development in Sub-Saharan
Africa will require massive expansion of access to
electricity -- currently reaching only about one-third of
households. This paper explores how essential economic
development might be reconciled with the need to keep carbon
emissions in check. The authors develop a geographically
explicit framework and use spatial modeling and cost
estimates from recent engineering studies to determine where
stand-alone renewable energy generation is a cost effective
alternative to centralized grid supply. The results suggest
that decentralized renewable energy will likely play an
important role in expanding rural energy access. But it will
be the lowest cost option for a minority of households in
Africa, even when likely cost reductions over the next 20
years are considered. Decentralized renewables are
competitive mostly in remote and rural areas, while grid
connected supply dominates denser areas where the majority
of households reside. These findings underscore the need to
de-carbonize the fuel mix for centralized power generation
as it expands in Africa. |
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