FINANCIAL ASPECTS OF STAND-ALONE SOLAR POWER SYSTEMS IN SUB-SAHARAN AFRICA ...

79 Pages·2015·2.68 MB·English

FINANCIAL ASPECTS OF STAND-ALONE SOLAR POWER SYSTEMS IN
SUB-SAHARAN AFRICA

A THESIS IN
Electrical Engineering

Presented to the Faculty of the University
of Missouri-Kansas City in partial fulfillment of
the requirements for the degree

MASTER OF SCIENCE

by
ANGELA NDHUYA OGUNA ORUOCH

B.Sc., University of Kansas, 2011

Kansas City, Missouri
2015
© 2015
ANGELA NDHUYA OGUNA ORUOCH
ALL RIGHTS RESERVED
FINANCIAL ASPECTS OF STAND-ALONE SOLAR POWER SYSTEMS IN SUB-
SAHARAN AFRICA

Angela Ndhuya Oguna Oruoch, Candidate for the Master of Science Degree
University of Missouri-Kansas City, 2015
ABSTRACT
Countries in Sub-Saharan Africa have struggled with low electrification rates in
rural areas. This research examines various methods of achieving higher rural
electrification rates. Among the factors that impede rural electrification via extension of
the grid include high connection costs and locations that are a long distance from the grid.
Other renewable energy technologies such as small hydropower and small wind home
systems also have high initial costs and are limited to implementation under specific
geographic conditions. The rise in popularity of solar PV systems has provided a viable
option for many rural residents. Although initial costs may be high similar to the other
technologies, vendors have put in place mechanisms for payment by installments that
makes the technology affordable for a larger proportion of the population. However,
repayment terms are still short (mostly within a year); therefore the monthly payments
may still be out of reach for some. The modular nature of solar PV systems is also
beneficial since users can buy lower capacity components and add on to their system over
time. The key findings suggest that extension of the payment period for solar PV systems
would make the technology more affordable for a larger segment of the population. In
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addition, it proposes future collaboration between solar companies that offer pay-as-you-
go financing solutions with informal financial arrangement groups commonly referred to
as Rotating Savings and Credit Associations (ROSCAs) or Accumulating Savings and
Credit Associations (ASCAs). These partnerships will provide a wider platform to
educate rural residents on the benefits of solar lighting and to encourage members to
purchase these products for their homes.

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APPROVAL PAGE
The faculty listed below, appointed by the Dean of the School of Computing and
Engineering have examined a thesis titled “Financial Aspects of Stand-alone Solar Power
Systems in Sub-Saharan Africa,” presented by Angela Ndhuya Oguna Oruoch, candidate
for the Master of Science degree, and verify that in their opinion it is worthy of
acceptance.
Supervisory Committee
Ghulam Chaudhry, Ph.D., Committee Chair
Department of Computer Science Electrical Engineering

Soundrapandian Sankar, Ph. D.
Department of Computer Science Electrical Engineering

Mahbube Siddiki, Ph.D.
Department of Computer Science Electrical Engineering

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CONTENTS

ABSTRACT .............................................................................................................. iii
ILLUSTRATIONS ................................................................................................. viii
TABLES ................................................................................................................... ix
1. INTRODUCTION ............................................................................................... 1
2. TECHNOLOGIES FOR ACHIEVING RURAL ELECTRIFICATION ............ 5
Grid extension ................................................................................................ 5
Solar photovoltaics......................................................................................... 7
Small wind home systems ............................................................................ 12
Small hydropower ........................................................................................ 13
Comparison of costs for technologies .......................................................... 14
3. SOLAR PHOTOVOLTAIC TECHNOLOGY .................................................. 16
The Solar Cell .............................................................................................. 17
Inverters ....................................................................................................... 23
Batteries ....................................................................................................... 24
Charge Controller......................................................................................... 30
Solar Power Configuration Systems ............................................................ 31
4. COMPONENTS OF A SUSTAINABLE SOLAR PV SYSTEM ..................... 37
Sizing the PV System................................................................................... 37
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Consumer Education .................................................................................... 41
Quality of Products ...................................................................................... 43
Financing Options for Solar Lighting Systems ............................................ 45
5. CASE STUDIES FOR PAY-AS-YOU-GO SOLAR LIGHTING SYSTEMS . 48
M-KOPA Solar ............................................................................................ 48
Azuri Technologies ...................................................................................... 50
SunnyMoney ................................................................................................ 51
Future of Pay-As-You-Go Financing........................................................... 53
6. CONCLUSION AND FUTURE WORK .......................................................... 55
Future Work ................................................................................................. 58
APPENDICES ......................................................................................................... 60
Appendix A: Electricity access rates in Africa in 2012 ............................... 60
Appendix B: Indigo Duo solar home system specifications ........................ 62
Appendix C: SunnyMoney solar lighting options ....................................... 64
REFERENCES ........................................................................................................ 67
VITA ........................................................................................................................ 70

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ILLUSTRATIONS
Table Page
1: Portable solar lights ........................................................................................................ 8
2: Pico photovoltaic solar systems ...................................................................................... 9
3: a) DC solar home system b) AC solar home system .............................................. 10
4: Large solar home system .............................................................................................. 11
5: Solar residential system ................................................................................................ 12
6: Comparison of costs for technologies for rural electrification ..................................... 15
7: The Solar Cell. .............................................................................................................. 19
8: Formation of a Solar PV Array. .................................................................................... 20
9: Solar photovoltaic price trends ..................................................................................... 23
10: Battery price trends over time ..................................................................................... 27
11: Flywheel energy storage system ................................................................................. 29
12: Relationship between current and voltage during 3-stage charge cycle ..................... 31
13: Grid Connected Solar System ..................................................................................... 33
14: Principles of PV electricity production and daily demand ......................................... 33
15: Off-Grid Solar System. ............................................................................................... 36
16: LED price trends over time ......................................................................................... 39
17: M-KOPA III solar lighting system ............................................................................. 50

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TABLES
Table Page
1: Rates of electricity access in 2012 .................................................................................. 2
2: Grid connection charges as a percentage of family income ........................................... 6
3: Comparison of solar irradiance (kWh/m2/day) in Kisumu (Kenya) and Kansas City,
MO (US) ............................................................................................................... 17
4: Minimum energy demand for lighting phone and radio ............................................... 38
5: Impacts of solar lighting systems.................................................................................. 42
6: International standards for stand-alone PV systems and components .......................... 44
7: Livelihood classification, distribution and average monthly income in Kenya ........... 46

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CHAPTER 1
INTRODUCTION
According to the International Energy Agency (IEA), in 2012, 1.3 billion people
worldwide lacked access to electricity, with the bulk of the affected people residing in
Sub-Saharan Africa (SSA) and Asia [1]. For the rural population in SSA, on which this
thesis focuses, only 16% of the people have access to electricity as illustrated in Table 1
[1]. The primary use of electricity in the rural areas is for lighting and charging small
electrical appliances. Due to the lack of electricity, a large segment of the population
relies on hazardous forms of flame-based lighting which produce low light levels. This
also includes the use of diesel operated generators to charge small televisions, radios and
cellphones. Additionally, entrepreneurial traders in local marketplaces will charge a fee
to charge cellphones where users have no other alternative. As a result, rural residents
incur high costs to provide for their families lighting and cell phone charging needs.
Access to electricity is a major requisite to support socio-economic development
and improvement of the living conditions of rural communities [2]. The United Nations
General Assembly has unanimously declared the decade 2014-2024 as the Decade of
Sustainable Energy for all. The initiative aims to bring together stakeholders in
government, the private sector and civil society to work on three objectives: provide
universal energy access, to double the rate of global energy efficiency improvement and
to double the share of renewable energy in the global energy mix.

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