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kaon123 | 2 years ago

I've worked a bit in this sector, and here are my observations:

1. Solar Home sets range from $5 flashlights with solarcells to $150 home lights+panels+phonecharger+radio to $400 sets with TV. The more expensive sets are usually paid off over time.

2. The impact of even the smallest flashlights on human wellbeing is enormous. You may imagine a village in the third world has a cosy campfire. But in truth it is usually too much effort to collect the wood, so people live in the dark half the day. The mentioned kerosine lamps are already a luxury to many. Having a flashlight so you can spot the snakes and spiders when you go outside at night to have a pee, or make sure you do not slip is life saving. Having a 100lumen light in your bedroom so you can see faintly your wife or husband while you have sex is amazing.

3. So this is about improving well-being. Not industrialising. These solar home systems do not significantly make people wealthier or more likely to become wealthy. It just makes them 20% happier. You need significantly more and cheaper power to start a factory. For that, "Commercial and Industrial solar" is a big deal. Where companies in India/Africa/Indonesia buy $10-30k worth of solar panels + battery + inverter to make sure their factories are always powered. Cost of up-front capital and competing with subsidised energy makes this not always a no-brainer.

4. Grid expansion is... expensive. I do not think we'll see the grid covering everywhere by the end of this century. And microgrids are great, but also expensive. How expensive? Consider that connecting your house to the grid in a developed country costs about $10k. Companies have been able to connect villages under the grid for about $1500 per house. Microgrids (with all their limitations) can sometimes do it for $700. If you consider that a household makes anywhere between $100 and $700 per year, then you see that the only way to be able to do this is with heavy subsidies (development aid) from foreign countries. And then you still need to pay for the actual power and maintain the grid. If that costs $300/household/year, and the household makes less per year, then your economics go nowhere.

One more thing: A related problem that affects the same population is that of clean cooking. Poor people (women) cook on wood or charcoal instead of electricity or gas. Arguably this is the worst problem in the world (yes worse than war, natural disasters, HIV, Malaria and all other diseases together) as millions of people die from it each year. Solutions are similar: Selling small gas stoves.

Tl dr; The real problem with energy poverty is that the people it is trying to reach are unimaginably poor. Way poorer than that great grandfather of yours that grew up in poverty. Solve poverty and you solve energy.

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