The key market barriers in developing countries to having reliable power is a complex puzzle with many pieces that need to fit together for a comprehensive picture to be seen.
Simply stated but the interwoven factors can get way over one’s head. Yet the solutions – pieces of the puzzle – are already set in motion. Let’s get the backgrounder to this complexity.
- In many countries, there are policies in place that allow for fossil fuel subsidies to reduce the direct cost to the consumer. Globally, governments subsidized fossil fuels by almost $300 billion in 2017.
- IMF leader Christine Lagarde said that if fossil fuel subsidies were removed: “There would be more public spending available to build hospitals, to build roads, to build schools and to support education and health for the people. We believe that removing fossil fuel subsidies is the right way to go.”
- These subsidies could be used to develop off-grid solutions in developing countries and fast track the education sector which would have multiple positives for any market involved.
- The opportunity for off-grid electrification has enormous potential as electrification reaches geographically isolated and poorer areas where grid extension is not economically attractive to government and local businesses.
Perfectly positioned for off-grid solar installations
Many countries have no domestic fossil fuel resources and have to import oil for transport and electricity generation. Within these countries, there are geographically isolated regions that make sending fossil fuels uneconomical.
Many of these countries have more than 300 days a year of sunshine, making them perfectly positioned for off-grid solar installations. As satellite companies expand the broadband coverage globally, this creates opportunities for government and local partners to develop solar-run educational centers.
Many countries and cities in certain parts of the world experience complete blackouts for protracted periods of time. Imagine you’re a student learning English and studying for an important exam, and load shedding or a power blackout occurs…
What do you do? You are totally reliant on the battery life left in your phone or computer unless you’re fortunate enough to have an alternate battery backup system. And if your battery lasts you long enough, you’re still reliant on municipal and government infrastructure for cellular and internet connectivity.
Surreal but true to life…
I heard a beautiful story of a young girl that grew up in a rural community far away from the nearest town, Umbazwana, 20 km away. She went to the local school and was fortunate to have a passionate teacher who instilled a hunger for learning and knowledge in her.
In the evenings, as her father did not have a vehicle, she would walk 3 km to her uncle’s house where he had rigged up a lighting system onto the battery of his pickup truck. She was allowed to use the light to study for two hours a night.
She was a very diligent student and progressed through her schooling doing exceptionally well. After school, she applied to the University of Natal, where she went on to earn a Master’s degree. Today she is employed by the Department of Education and is making a difference in many children’s lives.
She is one of the lucky ones that had a compassionate and understanding uncle willing to help. How many others are there whose dreams die at sunset? In our modern context, a world-class education is dependent on 3 things:
- Quality and current resources
- Reliable broadband
- Reliable power
Here’s some good news: Africa’s vast potential for renewable energy could outstrip the continent’s projected electricity demand in 2030, according to new research. The paper, “Strategic siting and regional grid interconnections key to low-carbon futures in African countries” maps the potential for new wind and solar farms in 21 African countries.
At present, Africa has the lowest per capita electricity consumption in the world but on the horizon lies many solutions waiting for a determined push or a dynamic coming together of pieces of the puzzle.
