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

Reber, Tim; Booth, Samuel

doi:10.1007/s40518-018-0115-7

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:

Reber, Tim ^[1]; Booth, Samuel ^[1]

National Renewable Energy Lab. (NREL), Golden, CO (United States)

Publication Date:: Sat Aug 04 00:00:00 EDT 2018

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:: 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.

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                    Reber, Tim, & Booth, Samuel. Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends.  United States.  https://doi.org/10.1007/s40518-018-0115-7

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                    Reber, Tim, and Booth, Samuel. Sat .  
"Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends".  United States.  https://doi.org/10.1007/s40518-018-0115-7.  https://www.osti.gov/servlets/purl/1466565.

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@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},

  number       = 3,

  volume       = 5,

  place        = {United States},

  year         = {Sat Aug 04 00:00:00 EDT 2018},

  month        = {Sat Aug 04 00:00:00 EDT 2018}

}

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Works referenced in this record:

Mini-grid based off-grid electrification to enhance electricity access in developing countries: What policies may be required?
journal, July 2016

Bhattacharyya, Subhes C.; Palit, Debajit
Energy Policy, Vol. 94
DOI: 10.1016/j.enpol.2016.04.010

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

Abstract

Citation Formats

Mini-grid based off-grid electrification to enhance electricity access in developing countries: What policies may be required? journal, July 2016

Mini-grid based off-grid electrification to enhance electricity access in developing countries: What policies may be required?
journal, July 2016