wind, bio-energy, and the increasingly popular solar household systems (SHSs) – have the potential to alleviate rural energy poverty and even to displace costly diesel-based power generation (GNESD 2010; IEA 2010a; REN21 2011). Furthermore, they can contribute to the decoupling of energy supply and GHG emissions, and avoid increasing fuel imports for low-income countries. SHSs typically generate around 30 to 60 watts from a PV module and include a rechargeable battery to power, for example, 4 to 6 compact fluorescent lamps, a TV, and potentially a mobile-phone charger. The technology is also useful for providing clean drinking water. The price in Asia for an average system ranges from US$ 360 – 480 for 40 peak watts, thus US$ 8–11/watt, while in Africa it is higher at US$ 800 (e.g. in Ghana) for 50 watts, thus US$ 16–17/watt (ESMAP 2008b). The main advantage of renewable off-grid solutions is that running costs are very low, although upfront investments are still high.7
The availability and diffusion of clean biomass technologies, such as improved and alternative cook
7. Potential financing mechanisms are discussed in section 5.3.
8. The estimated investment needs are not broken down by IEA, UNDP and UNIDO (IEA 2010a) according to energy source, but in discussing opportunities for renewables, the potential promise of combining different sources of renewable energy in a power system supplying rural mini-grids is highlighted.
stoves and biogas systems, which reduce unsustainable and inefficient use of firewood and hazardous air pollution, can constitute an intermediate step to the provision of modern energy services for rural populations dependent on biomass. In fact, some have singled out clean biomass technologies for households and small industries as a priority for Africa, with the potential of developing industries suitable for rural areas and to leap-frog development of energy technologies (Karekezi et al. 2004). Projections by the IEA, UNDP and UNIDO (IEA 2010a) for ensuring universal access to modern cooking facilities by 2030 recognise this potential and include 51 per cent of the investment target of US$ 2.6 billion per year allocated to biogas systems and 23 per cent to advanced biomass cooking stoves, both in rural areas.
For many remote rural areas and for a large proportion of the 1.4 billion who lack access to energy, renewable energy sources thus present an increasingly viable option for addressing their unmet demand. IEA, UNDP and UNIDO (IEA 2010a) estimated investment to ensure access to electricity for all by 2030 at US$ 756 billion, corresponding to a relatively modest sum of US$ 36 billion per year, the bulk of which would be for off- grid systems, including various renewable options, in addition to conventional diesel generation.8