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Off-grid energy services for the poor: Introducing LED lighting in the Millennium Villages Project in Malawi

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  • Adkins, Edwin
  • Eapen, Sandy
  • Kaluwile, Flora
  • Nair, Gautam
  • Modi, Vijay

Abstract

Lanterns that use light-emitting diodes (LEDs) powered by batteries, which are in turn charged by grid electricity or small solar panels, have emerged as a cost-competitive alternative to kerosene and other fuel-based lighting technologies, offering brighter light for longer duration at equal or lower cost over time. This paper presents lessons learned from the introduction of solar LED lanterns in rural Malawi. We discuss a market-based program using new and existing local commercial structures such as vendors and cooperatives to sell lanterns to village households without subsidy. The paper addresses issues of enterprise development, community interactions, and survey data on lighting use and expenditure patterns before and after LED lantern introduction. Households that purchased a lantern reported high levels of satisfaction with the LED lanterns as well as savings in annual kerosene expenditure comparable to the price of the lantern. These households also reported monthly incomes comparable to the price of the LED lanterns whereas non-adopters surveyed reported monthly incomes about half this level, suggesting a need for financing options to maximize adoption among poorer populations in rural areas. These results suggest that similar market based models of LED lighting technology dissemination have the potential to be replicated and scaled up in other off-grid regions in developing countries. However, viability of local cooperatives and supply chains for lantern products over the medium-to-long term remain to be assessed.

Suggested Citation

  • Adkins, Edwin & Eapen, Sandy & Kaluwile, Flora & Nair, Gautam & Modi, Vijay, 2010. "Off-grid energy services for the poor: Introducing LED lighting in the Millennium Villages Project in Malawi," Energy Policy, Elsevier, vol. 38(2), pages 1087-1097, February.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:1087-1097
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    1. McHenry, Mark P. & Doepel, David, 2015. "The ‘low power’ revolution: Rural off-grid consumer technologies and portable micropower systems in non-industrialised regions," Renewable Energy, Elsevier, vol. 78(C), pages 679-684.
    2. McHenry, M.P. & Doepel, D. & Onyango, B.O. & Opara, U.L., 2014. "Small-scale portable photovoltaic-battery-LED systems with submersible LED units to replace kerosene-based artisanal fishing lamps for Sub-Saharan African lakes," Renewable Energy, Elsevier, vol. 62(C), pages 276-284.
    3. Harish, Santosh M. & Iychettira, Kaveri K. & Raghavan, Shuba V. & Kandlikar, Milind, 2013. "Adoption of solar home lighting systems in India: What might we learn from Karnataka?," Energy Policy, Elsevier, vol. 62(C), pages 697-706.
    4. Wong, Sam, 2012. "Overcoming obstacles against effective solar lighting interventions in South Asia," Energy Policy, Elsevier, vol. 40(C), pages 110-120.
    5. Scott, Inara, 2017. "A business model for success: Enterprises serving the base of the pyramid with off-grid solar lighting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 50-55.
    6. Pillot, Benjamin & Muselli, Marc & Poggi, Philippe & Dias, João Batista, 2019. "Historical trends in global energy policy and renewable power system issues in Sub-Saharan Africa: The case of solar PV," Energy Policy, Elsevier, vol. 127(C), pages 113-124.
    7. Sovacool, Benjamin K. & Ryan, Sarah E., 2016. "The geography of energy and education: Leaders, laggards, and lessons for achieving primary and secondary school electrification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 107-123.
    8. Kütt, Lauri & Millar, John & Karttunen, Antti & Lehtonen, Matti & Karppinen, Maarit, 2018. "Thermoelectric applications for energy harvesting in domestic applications and micro-production units. Part I: Thermoelectric concepts, domestic boilers and biomass stoves," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 519-544.
    9. Abhi Chatterjee & Daniel Burmester & Alan Brent & Ramesh Rayudu, 2019. "Research Insights and Knowledge Headways for Developing Remote, Off-Grid Microgrids in Developing Countries," Energies, MDPI, vol. 12(10), pages 1-19, May.
    10. Hong, Xudong & Wu, Shengnan & Zhang, Xueliang, 2022. "Clean energy powers energy poverty alleviation: Evidence from Chinese micro-survey data," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    11. Holstenkamp, Lars, 2019. "What do we know about cooperative sustainable electrification in the global South? A synthesis of the literature and refined social-ecological systems framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 307-320.
    12. Banal-Estañol, Albert & Calzada, Joan & Jordana, Jacint, 2017. "How to achieve full electrification: Lessons from Latin America," Energy Policy, Elsevier, vol. 108(C), pages 55-69.
    13. Chirambo, Dumisani, 2016. "Addressing the renewable energy financing gap in Africa to promote universal energy access: Integrated renewable energy financing in Malawi," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 793-803.
    14. Annika Groth, 2020. "Overcoming One-way Impact Evaluation of Rural Electrification Projects," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 464-476.
    15. Xavier Lemaire, 2018. "Solar home systems and solar lanterns in rural areas of the Global South: What impact?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(5), September.
    16. Darren McCauley & Rebecca Grant & Evance Mwathunga, 2022. "Achieving energy justice in Malawi: from key challenges to policy recommendations," Climatic Change, Springer, vol. 170(3), pages 1-22, February.
    17. Elizabeth Baldwin & Jennifer N. Brass & Sanya Carley & Lauren M. MacLean, 2015. "Electrification and rural development: issues of scale in distributed generation," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(2), pages 196-211, March.
    18. Alem, Yonas & Hassen, Sied & Kohlin, Gunnar, 2013. "The Dynamics of Electric Cookstove Adoption: Panel Data Evidence from Ethiopia," RFF Working Paper Series dp-13-03-efd, Resources for the Future.
    19. Stefan Bouzarovski & Saska Petrova & Sergio Tirado-Herrero, 2014. "From Fuel Poverty to Energy Vulnerability: The Importance of Services, Needs and Practices," SPRU Working Paper Series 2014-25, SPRU - Science Policy Research Unit, University of Sussex Business School.
    20. Ahemen Iorkyaa & Akpagher I. Richard & Alexander N. Amah, 2012. "The Efficacy of Light Emitting Diode (LED) Lamps Used in Rural Communities of Nigeria," Energy and Environment Research, Canadian Center of Science and Education, vol. 2(1), pages 121-121, June.
    21. Hong, George William & Abe, Naoya, 2012. "Modeling and optimizing a sub-centralized LED lamps provision system for rural communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4616-4628.
    22. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.

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