Solar Home Systems (SHS) harness renewable sources of energy and are transforming the lives of millions without access to electricity. It's a great starting point, but more must be done to ensure that this resource remains an affordable boost for sustainable development.
The term "leapfrogging" is used to describe a technological jump that skips a phase or more in that technology’s evolution process. It is frequently used to describe disruptive technologies in the developing world. The best examples can be found in the communications sector, where billions of users in the developing world "skipped" the stage of owning landline telephones, "leapfrogging" directly to mobile phones.
In much the same way, some mobile users leapfrogged computers and went directly to using smartphones. Moreover, mobile phone users in East Africa pioneered the use of mobile wallets (through M-Pesa and mobile money- a technology that allows people to receive, store and spend money using a basic mobile phone.) and leapfrogged from the cash economy to mobile payments, skipping the use of bank accounts and credit cards.
The leapfrogging e$ect holds a great promise of swiftly progressing towards better technologies and providing accessible solutions which can reach the masses. Other sectors are also trying to take leapfrogging steps and provide such access. One such sector in which this trend is very visible is the energy sector.
Most developing countries have limited grid capacity and are unable to provide large proportions of their populations' ready access to electricity. For example, in Uganda, a country with a population of over 42 million people, only 26% of the population has access to electricity. Given the high investment needed to establish grid infrastructure, and the enormous task of connecting hundreds of millions of people in rural areas, it is hard to imagine developing countries copy-pasting the existing energy sector structure in the developed world. In addition, new technologies are constantly emerging, offering better, more effective, and possibly cheaper ways of producing energy, alongside new methods of connecting the unconnected.
This corresponds with another strong trend of recent years, that of taking the environment into account, especially in the energy sector. This means the adoption of environmentally friendly energy production methods, reducing the hazard of resource-exploiting practices, and seeking renewable energy alternatives.
Looking at SDG 7 “Affordable and Clean Energy” and reading through its targets, it becomes clear how those two trends work together. The first target is to ensure universal access to electricity. This means connecting the unconnected, who are mostly in developing countries. The second target is to substantially increase the use of renewable sources of energy. In my understanding, this is a simple 1+1, an indication of the global trend of nudging developing countries with the pressing need to develop their energy sector to use renewable sources of energy. It seems logical that given the knowledge and technology we have available nowadays, developing countries do not have the need to copy-paste the polluting and environmentally unfriendly structure of the energy sector in the developed world.
However, I would like to take a critical look at some of the issues that are arising as the developing world takes the global lead in adopting renewable sources of energy. This is occurring not only on the national level, with governments around the world trying to harness their resources (sun, wind, hydro-power, and more) and build "green" energy plants
powered by renewable sources, but also on smaller scales and in what we call the consumer market.
The promise of leapfrogging into renewables is can be seen in the energy sector in East Africa, along with many other parts of the developing world, where many people without access to grid electricity are investing in Solar Home Systems (SHS). These are small portable electricity systems, not connected to the national grid, that can provide energy to any place with access to sunshine. It is possible to find solar lanterns and even small- to medium-sized solar panels in grocery stores and markets across the region, even in its most remote corners. It is obvious that solar energy is changing the landscape. Places far removed from the grid have an alternative, clean source of energy. However, a deep dive into the sector reveals that it will take much more than technology alone for this attempted leapfrog to happen. On the ground, the private sector is taking the lead and #lling in where governments have failed in serving their population. The private sector is asking donors and governments for support and assistance in establishing this new sector. New business models are being introduced, which would allow unbanked and low-income populations to acquire solar systems over time.
There is good cause to be optimistic. Millions of people in the developing world, previously unconnected to grid electricity, now have access to alternative sources of energy. Millions of new users have electricity in their houses; the ability to charge their phones easily allows them to do a lot more thanks to this access. However, I would like to shed light on some of the challenges and problems that are arising from this evolving trend. In Israel, the pioneers in solar energy usage were the Bedouin communities in the Negev. One can assume that it was not environmental concerns that pushed them into becoming early adaptors, but rather the institutional neglect of infrastructure development in their villages, in line with political considerations (which are beyond the scope of this short essay). In the same way, I want to argue, early adopters in the developing world are not opting for solar energy for environmental reasons, but rather have been pushed to use it, in the absence of other alternatives. (It is worth noting that in the meantime, the realities of the developed world are hardly being pushed that same way…)
“new technologies are constantly emerging, offering better, more effective, and possibly cheaper ways of producing energy, alongside new methods of connecting the unconnected.”
Looking at SHS from a development point of view, there are several challenges. SHSs are currently sold all over East Africa. At a minimum, these systems can produce light and charge a phone; and at most, they have the capacity to power larger appliances, like televisions. However, commonplace electric devices, such as refrigerators and washing machines, consume too much electricity to be supported by common SHS units. This is one example of how the quality or value that such a connection can provide is not of the same standard as the connection to the grid. Another disturbing problem is reflected in the price per energy unit. With SHS units currently on the market in east Africa, the energy unit cost is much higher than the energy unit cost for the national grid. This means that SHS users must pay more, and for a lower quality of energy.
In addition, there is the assumption that access to energy (such as by owning an SHS) improves one's economic status. However, most studies on this topic have not been able to confirm this assumption. While it is clear that investment in extending the national grid will lead to financial growth, off-grid systems are yet to establish a similar link.
From another economic point of view, many of the current SHS manufacturers are extracting money from the periphery into an industry based in the center, mostly internationally owned. And as much as this intervention relies on the private sector to take the lead in connecting the unconnected, a recent study suggests that 30-50 million very poor and 100-120 million isolated rural households will remain unaddressed by the current market-based approaches.
To try and summarize this complex topic, and to highlight these trends from where I am standing: it’s clear that developing countries and speci#cally their lower income and rural populations, are leading the way in the massive adoption of renewable energy sources, and in creating an alternative, more sustainable energy sector. However, while home-based renewables are part of this solution, by providing energy access to millions of persons not reached by the grid, these technologies still have a long way to go—both in terms of cost and capacity—before they can be seen as an adequate solution to the challenge of promoting renewable energy sources.
Hagit Freud
