Making energy efficiency pro-poor : insights from behavioural economics for policy design

This paper reviews the current state of behavioural economics and its applications to energy efficiency in developing countries. Taking energy efficient lighting in Ghana, Uganda and Rwanda as empirical examples, this paper develops hypotheses on how behavioural factors can improve energy efficiency policies directed towards poor populations. The key argument is that different types of affordability exist that are influenced by behavioural factors to varying degrees. Using a qualitative approach, this paper finds that social preferences, framing and innovative financing solutions that acknowledge people’s mental accounts can provide useful starting points. Behavioural levers are only likely to work in a policy package that addresses wider technical, market and institutional barriers to energy efficiency. More research, carefully designed pre-tests and stakeholder debates are required before introducing policies based on behavioural insights. This is imperative to avoid the dangers of nudging

Ramakrishna Mission initiative impact study: final report

This report has been prepared by the Tata Energy Research Institute (TERI) for the National Renewable Energy Laboratory. It presents the results of the evaluation and impact assessment of solar photovoltaic lighting systems in the region of Sunderbans, West Bengal, that were deployed by a reputable non-governmental organization (Ramakrishna Mission) under the auspices of the INDO-US collaborative project. The objectives of the study were to evaluate the solar photovoltaic systems for their impact on the individual households as well as on the community, to assess the effectiveness of the implementation and financial mechanisms, and to draw a long-term strategy for NREL's activities in Sunderbans based on case studies of similar interventions. Under the project, provision was made to supply 300 domestic lighting systems (DLS) based on 53-Wp module capacity to individual households and a few other systems such as for lighting, medical refrigeration, and pumping water to community centers. For this study, 152 households were surveyed, of which 29 had also been a part of earlier pre- and post-installation surveys, 47 had been a part of the earlier post-installation survey, and 76 were households that were surveyed for the first time. A set of 46, out of the total 152 households, was selected for evaluating the systems for their technical performance with respect to module output, condition of the battery, and daily energy consumption. Of the total 300 modules, 2 had been stolen, 9 out of the total 300 batteries needed to be replaced, and 10 out of the 300 charge controllers were non-functional. The statistics for the surveyed households indicate 32 luminaire-related faults (blackening or flickering of compact fluorescent lights) and 11 other faults related to fuses, switches, etc

Solar lanterns for domestic lighting in India: Viability of central charging station model

About 68 million households in India rely on kerosene as a fuel for domestic lighting. Kerosene-based lighting devices, not only for poor quality of light, but also for the risks of indoor air pollution and fire hazards, etc. are not a desired option for domestic lighting purposes. Solar lantern is a better alternative in terms of its quality of illumination, durability and versatility of use. The dissemination model for solar lantern in India has so far been based on cash sales with or without the incentive of capital subsidy. This paper analyses several dissemination models including rental and fee-for-service based on centralized solar charging station concept for CFL- and LED-based designs of solar lanterns available in India. The basis of comparison is the acceptable daily costs or rental to the user as well as to the owner of the charging station. Further, the paper studies the impact of likely escalation in kerosene price on the acceptable daily rental and estimates the amount of subsidy required to make the charging station model viable for disseminating solar lanterns among rural households.Solar lanterns Fee-for-service Central charging station

Carbon abatement potential of solar home systems in India and their cost reduction due to carbon finance

About 78 million rural households in India reportedly lack access to grid electricity. About 67 million of them use kerosene for lighting. Government of India is promoting the use of solar home systems (SHS) as one of the options for meeting lighting requirements in households in remote and less inhabited villages. About 363,399 SHS were reportedly disseminated across the country by December 2007. Apart from meeting the basic lighting need of the households, SHS also help in abating the emissions of green house gases (GHGs) by directly displacing the use of kerosene in households that currently use it for lighting. This study has attempted at estimating the CO2 mitigation potential of SHS in India by studying the potential for their diffusion and the appropriate baseline. Subsequently, the scope for cost reduction to the user due to carbon finance, if received, is also studied. It is found that carbon finance could reduce the effective burden of SHS to the user by 19% if carbon prices were $10/tCO22 and no transaction costs were involved in getting the carbon revenues. These benefits are also estimated for scenarios where transaction costs are incurred by the project proponent in getting the carbon benefits.Solar home systems CO2 emissions Carbon finance

Indian Approaches to Electricity Access

This chapter provides a review of energy access situation in India and describes how India approached the challenge of enhancing energy access. It considers both electricity and cooking energy services and identifies the main challenges. The chapter also highlights a few lessons from the Indian initiatives