Off-grid rural electrification for $25

Submitted by Rob Katz on June 15, 2005 - 10:26.
Published in: Energy

A recent article (available here, PDF) in the journal Science tackles the problem of electrification in low-income households with analysis showcasing a robust technical solution that could be made available for US$25 fixed-cost, without subsidy. The technology, solar-powered white light emitting diodes (WLEDs) are more efficient than fuel-based lighting (biomass, kerosene, candles, etc) by a factor of 100. In addition, the article’s author, Evan Mills, estimates that fuel-based lighting accounts for annual worldwide energy consumption of 77 billion liters of fuel per year – an amount equivalent to US$38 billion per year or US$77 per household. Mills states:

“Despite the paucity of lighting services obtained, individual unelectrified households in the developing world spend a comparable amount of money on illumination as do households in the developed world.”

With 14% of urban households and 49% of rural households without electricity as of 2000 (citation here), this represents a huge market opportunity. Companies are starting to take high-tech water filters, wireless telecommunications, and financial tools into low-income communities. When will companies start taking high-tech approaches to off-grid electrification into those same communities? At $25 per year, some microfinance organizations should think hard about giving loans to purchase these systems.