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Cost-effectiveness of rural energy access strategies

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  • Ankel-Peters, Jörg
  • Bensch, Gunther
  • Moull, Kevin
  • Rauschenbach, Mascha
  • Sievert, Maximiliane

Abstract

Quantitative benchmarks for cost-effective provision of rural energy access are difficult to obtain because deployment costs vary across technologies, contexts, and technical assistance approaches - but crucially also across sustainability assumptions. As an alternative, this policy perspective provides a qualitative cost-effectiveness assessment of different energy access strategies. We discuss the different cost factors, accounting for differences in impact potentials across rural energy access options. We include on-grid and off-grid electrification and improved cooking technologies. The focus is on rural sub-Saharan Africa (SSA), where energy access rates are low. We document largely disappointing impacts of high-power electrification technologies, turning stand-alone solar into the more cost-effective electrification strategy in that setting. We conclude by emphasizing the high impact-cost ratio for energy-efficient biomass cookstoves.

Suggested Citation

  • Ankel-Peters, Jörg & Bensch, Gunther & Moull, Kevin & Rauschenbach, Mascha & Sievert, Maximiliane, 2024. "Cost-effectiveness of rural energy access strategies," Ruhr Economic Papers 1116, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:319070
    DOI: 10.4419/96973295
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    References listed on IDEAS

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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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