With increasing energy prices, low income households are known to forego or minimize the use of electricity to save on energy costs. If a household is on a prepaid electricity program, it can be automatically and immediately disconnected from service if there is no balance in its prepaid account. Such households need to actively ration the amount of energy they use by deciding which appliances to use and for how long. We present a tool that helps households extend the availability of their critical appliances by limiting the use of discretionary ones, and prevent disconnections. The proposed method is based on a linear optimization problem that only uses average power demand as an input and can be solved to optimality using a simple greedy approach. We compare the model with two mixed-integer linear programming models that require more detailed demand forecasts and optimization solvers for implementation. In a numerical case study based on real household data, we assess the performance of the different models under different accuracy and granularity of demand forecasts. Our results show that our proposed linear model is much simpler to implement, while providing similar performance under realistic circumstances
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Opportunities for Productive Uses of Electricity in the Off-Grid Market
Increased demand for productive uses of energy is a driver of energy consumption. Low-income households in the off-grid market have a budget constraint. By understanding the energy priorities of low-income households in the off-grid market, utilities can develop innovative solutions for servicing the market. This paper builds on recent literature on productive uses of electricity for increased investment and pay back for micro-grid investment across the eight productive user categories that were developed in Rwanda. We ask: how can the range, success, and benefits of productive uses of energy be expanded in resource-constrained settings? To answer the research question, we address the need for supporting infrastructure of business development services, energy services bundling, and utility policy instruments that support productive use of energy. We created metrics for prioritizing productive uses of energy in the off-grid market. In the face of a budget constraint, low-income households that prioritize domestic over business and services uses of energy need integrated services that support the consumptive-productive-service link. Realistic cost-benefit analyses are needed. Solar irrigation as a small industry case in Rwanda can achieve at best a 3-year payback period if it can increase productivity by 54%. We offer recommendations to increase energy demand from productive uses of energy in the off-grid market: work with local cultural norms to support business development; develop realistic cost-benefit analyses based on local data, and partner with business training service providers.
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- Award ID(s):
- 2330437
- PAR ID:
- 10625234
- Publisher / Repository:
- IEEE
- Date Published:
- ISBN:
- 979-8-3503-8938-8
- Page Range / eLocation ID:
- 1 to 5
- Subject(s) / Keyword(s):
- productive use off-grid market utility policy micro-grid investment pay-back
- Format(s):
- Medium: X
- Location:
- Johannesburg, South Africa
- Sponsoring Org:
- National Science Foundation
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