Cost-Effectiveness of Rural Energy Access Strategies
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.