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Title: Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends

Abstract

This article reviews trends for micro-grid tariffs in Sub-Saharan Africa from two perspectives: guidelines for setting tariffs and methods for structuring tariffs. Different approaches are briefly described, and general benefits and drawbacks presented based on recent experiences and available literature. The pace of micro-grid deployment has suffered from a lack of private sector investment, which is often inhibited by unfavorable policies and uncertainty around tariffs. Traditional utility tariffs are too low to allow micro-grid investors to recover their full costs, but a variety of new approaches can be applied to address these challenges. Broad consensus suggests that cost-reflective tariffs are a critical enabler for micro-grid scale-up. Such tariffs can be coupled with subsidies or with hybridized approaches as well as unique new methods of tapping alternative revenue streams to maintain affordability for low-income customers and financial sustainability for micro-grids. There is no one-size-fits-all approach so long as lifetime costs can be recouped.

Authors:
 [1];  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
Power Africa; United States Agency for International Development (USAID); USDOE
OSTI Identifier:
1466565
Report Number(s):
NREL/JA-7A40-71911
Journal ID: ISSN 2196-3010
Grant/Contract Number:  
AC36-08GO28308
Resource Type:
Journal Article: Accepted Manuscript
Journal Name:
Current Sustainable/Renewable Energy Reports
Additional Journal Information:
Journal Volume: 5; Journal Issue: 3; Journal ID: ISSN 2196-3010
Publisher:
Springer
Country of Publication:
United States
Language:
English
Subject:
24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; mini-grid; micro-grid; tariff; rural electrification; energy access

Citation Formats

Reber, Tim, and Booth, Samuel. Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends. United States: N. p., 2018. Web. doi:10.1007/s40518-018-0115-7.
Reber, Tim, & Booth, Samuel. Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends. United States. doi:10.1007/s40518-018-0115-7.
Reber, Tim, and Booth, Samuel. Sat . "Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends". United States. doi:10.1007/s40518-018-0115-7. https://www.osti.gov/servlets/purl/1466565.
@article{osti_1466565,
title = {Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends},
author = {Reber, Tim and Booth, Samuel},
abstractNote = {This article reviews trends for micro-grid tariffs in Sub-Saharan Africa from two perspectives: guidelines for setting tariffs and methods for structuring tariffs. Different approaches are briefly described, and general benefits and drawbacks presented based on recent experiences and available literature. The pace of micro-grid deployment has suffered from a lack of private sector investment, which is often inhibited by unfavorable policies and uncertainty around tariffs. Traditional utility tariffs are too low to allow micro-grid investors to recover their full costs, but a variety of new approaches can be applied to address these challenges. Broad consensus suggests that cost-reflective tariffs are a critical enabler for micro-grid scale-up. Such tariffs can be coupled with subsidies or with hybridized approaches as well as unique new methods of tapping alternative revenue streams to maintain affordability for low-income customers and financial sustainability for micro-grids. There is no one-size-fits-all approach so long as lifetime costs can be recouped.},
doi = {10.1007/s40518-018-0115-7},
journal = {Current Sustainable/Renewable Energy Reports},
issn = {2196-3010},
number = 3,
volume = 5,
place = {United States},
year = {2018},
month = {8}
}

Journal Article:
Free Publicly Available Full Text
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