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Access to electricity is a crucial aspect of sub-Saharan Africa’s path towards development. In light of the potential for electricity access to improve quality of life, the United Nations aims to achieve universal access to ‘clean, reliable, affordable and modern’ electricity as Goal 7 of its Sustainable Development Goals (SDG 7). As such, governments of sub-Saharan African (SSA) countries, such as Ethiopia, have developed national electrification plans to outline their pathway to universal access to electricity. In this paper, we identify why it is essential for the national electrification plans of SSA countries to prioritize electricity access for productive uses in its agricultural sector, using Ethiopia as a case study. Reviewing existing literature and using the authors’ research, we point out that there is 3.04 terawatt-hours of latent demand for small-scale pressurized cereal-crop irrigation alone in Ethiopia. Supplying this electricity demand for small-scale irrigation could lead to a reduction in the levelized cost of electricity of up to 95%. We conclude our paper by recommending the creation of a cross-sector national productive use commission that would be tasked with collecting and sharing relevant data from each sector and collaboratively creating a national productive use program that would ensure that Ethiopia reaps the full benefits and potential for wealth creation from access to electricity.

 

Abstract Universal access to electricity is an essential part of sub-Saharan Africa’s path to development. With the United Nations setting Goal 7 of its sustainable development goals to be universal access to clean, reliable and affordable electricity, substantial research efforts have been made to optimize electricity supply based on projected demand in sub-Saharan African (SSA) countries. Our study reviews the literature on electricity demand, with a specific focus on latent demand (i.e., electricity demand that would exist if the necessary techno-economic conditions were met) in SSA. We found that out of 57 electricity demand papers reviewed, only 3 (5%) incorporated latent demand in their electricity demand projections. Furthermore, majority of the literature on electricity consumption and demand estimation in SSA use econometric models to identify determinants of electricity consumption and project future demand. We find that population density, urbanization, household income, electricity price, market value of crops and availability of natural resources to be significant determinants of electricity consumption in SSA. We conclude the review by proposing a methodology, and providing an initial proof of concept, for more accurately projecting latent demand in sub-Saharan Africa. Incorporating latent demand in electrification models would help inform energy sector stakeholders (e.g., investors and policymakers) about which sectors and geographic locations hold potential for wealth creation via electricity access.