Alliance for Rural Electrification

Background

The Alliance for Rural Electrification is an international non-profit organization founded by the most important European renewable energy industry associations, including European Photovoltaic Industry Association (EPIA), European Small Hydropower Association (ESHA), European Wind Energy Association (EWEA), European Biomass Industry Association (EUBIA) and the Global Wind Energy Council (GWEC).²

The Alliance’s main objectives³ are to:

• attract and unite all relevant actors in order to speak with one voice about rural electrification with renewable energies:
• generate technical and financial solutions about rural electrification in developing countries and is a reference on these issues;
• communicates and advocate for rural electrification using renewable energy systems (RES) and convinces all key stakeholders;
• assist its members in the field of corporate social responsibility (CSR) projects.

The Alliance for Rural Electrification is based in Brussels, Belgium, at the Renewable Energy House, a green building surrounded by the European Institutions, from where the Secretariat develops its main activities.⁴ The Alliance is led by President Ernesto Macias, who also serves as the Vice-President of the European Photovoltaic Industry Association.⁵

Real and potential impacts

Rural electrification is not only an energy issue, it is an education, health, environmental, social, humanitarian, economic, agricultural, communication, and water issue as well. The Alliance for Rural Electrification reports that 1.6 billion people worldwide—more than one-quarter of the world’s population—do not have access to electricity in their homes. Four out of five people without electricity live in rural areas of the developing world. A total capital investment of $8.1 trillion, equivalent to an average of $300 billion per year is needed until 2030 for the developing and transitional economies to meet their energy needs.⁶ Most developing countries offer excellent natural conditions for the use of renewable energy systems (RES) for rural electrification. RES are more cost effective than traditional diesel generator sets. Moreover, RES can make important contributions in fighting climate change.⁷

The Alliance for Rural Electrification presents four major technology solutions suitable for rural electrification⁸ :

1.  grid extension, traditional generation dominated power supply (petrol, gasoline, liquefied petroleum gas),
2.  solar home system (photovoltaic, wind, hydro), and
3.  hybrid or mini-grid power supply systems.

Any of these solutions can supply sufficient energy to electrification a rural community, but a combination of these solutions may be more effective and reliable.

Rural electrification means more than just lighting. Electrification provides a sustainable electricity power supply. The rural electricity supply, the same as in developed countries, has a significant social impact on communication and social activities, health and educational services, and on facilities.⁹ Rural electrification also prevents urban migration, provides a stronger sense of community, reduces mortality and improves gender equality. Electricity has also a substantial impact in terms of economic development by increasing productivity and economic growth.¹⁰

World electricity demand is expected to double between now and 2030.¹¹ Most of the growth of the world’s electricity demand is occurring in developing countries, where electrification rates are not keeping up with population growth. There are 2.5 billion people who rely on traditional biomass as their principal source of energy. This has negative consequences on land changes and degradation, but also on human health. Indoor air pollution is directly responsible for 1.3 million deaths per year.¹² The cost of fossil-fuel imports is unbearable for many poorer countries. Sudden price increases cause economic interference and can disrupt economic growth. In many less developed countries, a large percentage of export earnings (i.e., up to 40 percent in Nepal) are diverted to pay for the importation of petroleum fuels.¹³

Off-grid power generation is often the best solution for bringing an electricity supply to rural areas. Due to low potential electricity demand, and severe physical limitations, grid extension is often not an economically feasible option. According to the International Energy Agency, the figures regarding access to energy will remain largely unchanged in 2015, or even 2030, unless new strategies are adopted to expand access to modern services.¹⁴ Therefore, new approaches are needed to increase the production of electricity in rural areas, and to improve local living standards. One of the best solutions is a hybrid off-grid power system. This type of system offers the following benefits¹⁵ :

• Higher flexibility by coupling all consumers and generators on AC (alternating current) transmission lines,
• Standard AC used technology in the power range above several kilowatts,
• Different local renewable and conventional energy sources are suitable to form a hybrid grid,
• Simple expandability,
• Extension of a existing diesel based power system, and
• Use as a backup solution for unstable public grids.

A number of opportunities arise in the process of rural electrification. Opportunities from rural electrification include stimulating further investments from the private sector, promoting win-win situations between all stakeholders involved (foreign industry, local industry, users, local installers, and distributors), fostering economic development through the generation of wealth and employment, and increasing electrification rates in a sustainable way.¹⁶

Footnotes

1. Macias, Ernesto. Alliance for Rural Electrification, "Access to Sustainable Energy in Developing Countries (pdf)." presentation for RETECH 2009, American Council On Renewable Energy (ACORE), Las Vegas. Presented on 27 Feb 2009.

2. Alliance for Rural Electrification, Official Website. Retrieved on: 23 December 2009.

3. Ibid.

4. Ibid.

5. Ibid.

6. Macias, Ernesto. “Access to Sustainable Energy in Developing Countries (pdf).” presentation for RETECH 2009.

7. Ibid.

8. Ibid.

9. "The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits(pdf)." Published 2008. World Bank, Independent Evaluation Group (IEG). Retrieved on: 24 Dec 2009,

10. Ibid.

11. Macias, Ernesto. “Access to Sustainable Energy in Developing Countries (pdf).” presentation for RETECH 2009.

12. Ibid.

13. Ibid.

14. "World Energy Outlook 2009: Presentation to the Press (pdf)." International Energy Agency (IEA). London. Presented on 10 Nov 2009.

15. Macias, Ernesto. “Access to Sustainable Energy in Developing Countries (pdf).” presentation for RETECH 2009.

16. Ibid.

Resources

"Access to Electricity." Published 2009, World Energy Outlook, International Energy Agency(IEA), Retrieved on: 27 Dec 2009.

Woody, Todd. "Developing Countries Will Prove a Booming Solar Market, Industry Panelists Say." Blog entry. Posted on 28 Oct 2009, Green Inc.: Energy, the Environment and the Bottom Line, New York Times, Retrieved on: 27 Dec 2009.