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2011 | Book

Rethinking Rural Electrification Read chapter Read first chapter

Rural Electrification

Strategies for Distributed Generation

Author: Hisham Zerriffi

Publisher: Springer Netherlands

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik"

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About this book

For those in developed nations, suddenly being without electricity is a disaster: power cuts have us fretting over the food stored in the freezer, and even a few hours without lights, televisions, or air conditioning is an ordeal. However, for an estimated 1.6 billion people worldwide, the absence of electricity is their daily experience. An untold number of others live with electricity that is erratic and of poor quality. How can electric power be brought into their lives when the centralized utility models that have evolved in developed nations are not an economically viable option? Poor, rural communities in developing nations cannot simply be ‘plugged in’ to a grid.

Small-scale Distributed Generation (DG), ranging from individual solar home systems to village level grids run off diesel generators, could provide the answer, and this book compares around 20 DG enterprises and projects in Brazil, Cambodia and China, each of which is considered to be a "business model" for distributed rural electrification. While large, centralized power projects often rely on big subsidies, this study shows that privately run and localized solutions can be both self-sustaining and replicable. Its three sections provide a general introduction to the issue of electrification and rural development, set out the details of the case studies and compare the models involved, and discuss the important thematic issues of equity, access to capital and cost-recovery.

Hisham Zerriffi shows that in each case, it is not simply a matter of matching a particular technology to a particular need. Numerous institutional factors come into play including the regulatory regime, access to financial services, and government/utility support or opposition to the DG alternative. Despite this, in many countries, the question is not whether DG has a role to play. Rather it is a question of how it will play a role.

Table of Contents

Frontmatter
Chapter 1. Rethinking Rural Electrification
Abstract
Despite over a century of investment in electric power systems, there are roughly 1.6 billion people who lack access to electricity service, mainly in rural areas. While there are some open questions regarding the precise cause and effect relationships between rural electrification and human welfare, it is generally considered an important social, economic, and political priority to provide electricity to all. Unfortunately, the very complicated links between electricity and development are often obscured behind two idealized visions of rural electrification.
Hisham Zerriffi
Chapter 2. Research Design
Abstract
The history of distributed rural electrification efforts makes it possible to develop a structured study in order to understand the factors important for both success and failure. In order to do so, it is necessary to be specific regarding the characteristics of the distributed electrification model believed to be important in determining outcomes, the outcomes to be measured and the other factors that can be influential. This chapter outlines the methods used in this study, the hypotheses developed to explain outcomes, and how the particular case studies were chosen.
Hisham Zerriffi
Chapter 3. Distributed Rural Electrification in Brazil
Abstract
At the time of this research approximately 8 million people were without electricity in Brazil. This included roughly 1.2% of urban households in 2002, but the bulk lived in rural regions, particularly in the Amazon region and the Northeast (up to 60% of rural households in some regions with a national average of 27% of rural households without electricity in 2002) (ESMAP 2005). A more recent estimate shows over 4 million still do not have electricity access (IEA 2009). It is difficult to see how Brazil, can accomplish its goals of universal service without resorting to some form of decentralized electricity production. At the same time, distributed solutions face a number of institutional barriers that have either precluded their implementation or created conditions unfavorable to their success, even when they may be the best solution from a purely technical perspective.
Hisham Zerriffi
Chapter 4. Distributed Rural Electrification in Cambodia
Abstract
Official estimates in 2004 were that 15% of Cambodians had electricity access. This would not be surprising given that the population is still largely rural or lives in smaller towns. Eighty percent of the population lives below the district town level and 75% live at the commune (or village) level (Cam.NGO.Dom March 2006). Électricité du Cambodge is responsible for roughly 9% of the electrified population and the other 6% is from licensed generators and distributors, primarily at the district level. This low level of electrification by the official utility and licensed entities is a legacy of the poor development and long-term military conflicts that have plagued this country. However, at the same time, official surveys show nearly 50% of Cambodian households owning a television set (National Institute of Statistics undated). More recent estimates are that 24% of households have lighting provided by either publicly or privately generated electricity, another 38% use batteries and 36% use kerosene (National Institute of Statistics 2009). However, another estimate is that 90–95% of the population may have access to a basic level of electricity, enough for a lightbulb in the evening (Cam.NGO.Dom March 2006). How then to explain this difference? The rest of the population is being served primarily by battery charging services and village level networks developed and run by small entrepreneurs. These Rural Electricity Entrepreneurs (REEs), as they are known, may supply 75–85% of the population and are completely unlicensed, unregulated, and are not supported by the government or donors (making exact numbers difficult to determine). This pattern of electrification in Cambodia presents an excellent opportunity to study a distributed electrification model that is widespread but usually at the margins of electricity supply in most countries.
Hisham Zerriffi
Chapter 5. Distributed Rural Electrification in China
Abstract
The sharp reduction in unelectrified households in China, particularly over the last 20 years has been remarkable. From hundreds of millions of people without access, China had perhaps 15–20 million people without access to electricity at the time of this research and 8 million today (IEA 2009). The central government has even established criteria by which counties are judged to be “electrified,” including minimum levels of consumption.
Hisham Zerriffi
Chapter 6. Understanding Success and Failure in Distributed Electrification
Abstract
The previous three chapters provided detailed information on the performance of the business models within each of the three countries included in the study. Each country had unique institutional arrangements and different types of business models, leading to quite different outcomes. However, this variation can also be used to determine whether there are overall trends in the performance of these different business models. This chapter uses the results from case studies in all three countries to draw conclusions regarding success and failure in distributed rural electrification. In the next three sections, the initial hypotheses developed in Chap. 2 are examined to determine whether they are supported by the evidence. In order to do this, we examine the impact of the business models on changes in electricity service, sustainability and replicability.
Hisham Zerriffi
Chapter 7. Beyond Charity: Universal Service and a Vision for Distributed Electrification
Abstract
The statistic most often used to measure progress in rural electrification is the number of households (or people) with access to electricity. As a result, a lot of effort is expended on changing this statistics by increasing household connections. Often the access statistic seems to be limited to official connections through licensed or legally recognized entities. This ignores independent electrification efforts and systems that are not within the official institutional structure.
Hisham Zerriffi
Chapter 8. Paying for the Vision: New Financial Models for Distributed Electrification
Abstract
As noted throughout this book, rural electrification is a challenge because the costs of service are generally high and the willingness and ability to pay of the majority of customers are generally low. The prior chapter outlined a new vision for rural electrification based on policies that would include rural development as a priority and would emphasize affordability of rural electrification costs. This would require a shift in policies and, in many places such as Brazil, a shift in the regulatory system to remove technical barriers. However, even with those changes, the underlying financial difficulties inherent in rural electrification would remain. In particular, there would still be legitimate issues with the ability of rural populations to pay for electricity and equity issues regarding services for urban and rural consumers. This chapter addresses these issues directly.
Hisham Zerriffi
Backmatter
Metadata
Title
Rural Electrification
Author
Hisham Zerriffi
Copyright Year
2011
Publisher
Springer Netherlands
Electronic ISBN
978-90-481-9594-7
Print ISBN
978-90-481-9593-0
DOI
https://doi.org/10.1007/978-90-481-9594-7