Business model for microgrids in Sub-Saharan Africa rural areas : a case study in Revon C, Namibia
Dibaba, Henock Dandena (2019)
Dibaba, Henock Dandena
School of Energy Systems, Energiatekniikka
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
The Sub-Saharan Africa (SSA) has the lowest electricity access rate in the world, and the number is rising due to the rapid population growth. More than half of the region's population lacks electricity, and among those, nearly 80% are living in rural areas. Despite seeing a considerable increase in electrification across the region nearly 530 million people will live without access in 2040. In addition to the most stated challenges of supply and capacity developments, the SSA has multi-dimensional attributing factors for its energy poverty. These factors are mainly linked to the socio-economic fabrics of the region. Distributed energy resources (DERs) are currently perceived as one way of eradicating the energy poverty by lowering the high infrastructure cost, which used to be created by traditional grids systems. To enable deployment of DERs as reliable and sustainable energy resources, a suitable business model is essential. Energy business models can assure a delivery of affordable energy to customers, while creating a revenue and return on investment. In this thesis, different energy business models with a focus on energy access in emerging markets were assessed. Moreover, a case study in an ongoing Fusion Grid pilot project in rural Namibia was analyzed by using business model considerations and Net Present Value (NPV) as a financial viability tool. However, the results suggest that microgrid solutions were more expensive than the existing power supply excluding connection fees, which prompts further for studies regarding the value creation and pricing structure of the Fusion Grid concept.