Can Time-of-Use Tariffs Increase the Financial Viability of Mini-Grids?

Loading...
Thumbnail Image

Date

2022-10-26

Journal Title

Journal ISSN

Volume Title

Repository Usage Stats

15
views
13
downloads

Abstract

Declining solar and battery costs and increased operational efficiency have helped expand community-scale mini-grids, especially in sub-Saharan Africa and South Asia, where they now meet the power needs of over 47 million people. However, mini-grid system economics must continue to improve to be a reliable power solution for a significant share of the nearly 800 million people still lacking access. For rural, low-income communities with generally small power loads and significant demand variations, it can be challenging to align supply and demand while maintaining affordable rates and recovering investment costs. Time-of-use (ToU) tariffs—a rate structure where the tariff varies by the time of day that electricity is consumed—could represent one piece of the solution. This policy brief develops a model to estimate the effects of a ToU tariff on average costs and revenues using data from Energicity, a solar mini-grid operator in Sierra Leone.

Department

Description

Provenance

Citation

Citation

McNamara, Marie, Victoria Plutshack, Jonathan Phillips and Nicole Poindexter (2022). Can Time-of-Use Tariffs Increase the Financial Viability of Mini-Grids?. Retrieved from https://hdl.handle.net/10161/26572.

Scholars@Duke

Jonathan Phillips

Area Director, Nicholas Institute for En

Material is made available in this collection at the direction of authors according to their understanding of their rights in that material. You may download and use these materials in any manner not prohibited by copyright or other applicable law.