Lesson 7: Electricity Demand

7.1 Electricity demand & economic development

Mandatory
These reports make the case of going beyond connection of electricity – the supply side –
and focus on the demand side and the useful services that electricity can provide.
• “Powering opportunity in East Africa”. GOGLA, 2019. Based on experiences of users,
this excellent report shows what can be done with standalone solar systems.
https://www.gogla.org/resources/powering-opportunity-in-east-africa-proving-off-
grid-solar-is-a-power-tool-for-change
• “Closing the circuit, stimulating end-use demand for rural electrification”. Rocky
Mountain Institute, 2019. This report makes the case for a greatly increased focus on
supporting demand, outlines the key barriers hampering increased use of electricity,
and provides a succinct set of recommendations on actions that can be taken to
complement the current focus on supply- side solutions.
https://rmi.org/insight/closing-the-circuit/
Suggested
• “Re-thinking access-to-energy business models. RES4Africa, 2020. Experiences from
more than 20 projects using integrated and innovative business models, in rural areas
of Sub-Saharan Africa.
https://www.res4africa.org/2019/12/12/re-thinking/
For further reference
• “Development effects of rural electrification”. IADB, 2017.
https://publications.iadb.org/en/development-effects-rural-electrification
• “Measuring the benefits of energy access. A handbook for development
practitioners.” IADB, 2018.
https://publications.iadb.org/en/measuring-benefits-energy-access-handbook-
development-practitioners
7.2 Estimation of electricity demand in the provision of access
Mandatory
• Electrifying economies website. Look under: Impact / The energy ladder / Energy
consumption benchmarks.
https://www.electrifyingeconomies.org
• How will energy demand develop in the developing world? (2012). This interesting
paper will be the mandatory reading for this lesson and the next one too.
http://www.nber.org/papers/w17747
Suggested
 • “Electricity access in sub-Saharan Africa: Uptake, reliability, and complementary
factors for economic impact.” World Bank and the French Agency for Development,
2019. Understanding the demand barriers to electricity access.
https://openknowledge.worldbank.org/handle/10986/31333
• “A New Nexus Approach to Powering Development”. World Resources Institute, 2020.
https://www.wri.org/insights/new-nexus-approach-powering-development
For further reference
• Benjamin Sovacool. Conceptualizing urban household energy use: Climbing the
"Energy Services Ladder" (2011)
https://www.researchgate.net/publication/227415506_Conceptualizing_urban_hou
sehold_energy_use_Climbing_the_Energy_Services_Ladder
7.3 Understanding willingness to pay for electricity in India
Mandatory
The first document is a very interesting Policy Brief that summarizes the more detailed
content of the second document. For the purpose of the course, it suffices with reading
carefully the Policy Brief.
• Charging Power: Understanding Electricity Pricing and the Willingness to Pay for
Electricity in India. TERI (2017)
https://www.researchgate.net/publication/314232192_Charging_Power_Understan
ding_Electricity_Pricing_and_the_Willingness_to_Pay_for_Electricity_in_India
• Electricity Pricing and the Willingness to Pay for Electricity in India. Current
Understanding and the Way Forward
http://sun-connect-news.org/fileadmin/DATEIEN/Dateien/New/wtp-report-2017.pdf
Further reading
• When does unreliable grid supply become unacceptable policy? Costs of power supply
and outages in rural India. Santosh Harish et al. (2014).
https://cedmcenter.org/wp-content/uploads/2017/10/When-does-unreliable-grid-
supply-become-unacceptable-policy-Costs-of-power-supply-and-outages-in-rural-
India.pdf
7.4 Consumer perception, preferences & behavior
Mandatory
A set of articles that provide a diversity of perspectives on consumers behavior.
• The army of women battling India’s $10 billion power problem
https://www.bloomberg.com/news/features/2017-10-03/army-of-women-tackle-
electricity-thieves-in-indian-slums
• Providing electricity to Rio de Janeiro’s favelas
 https://www.theguardian.com/sustainable-business/providing-electricity-rio-de-
janeiro-favelas
• Bringing Electricity to Kenya’s Slums: Hard Lessons Lead to Great Gains
http://www.worldbank.org/en/news/feature/2015/08/17/bringing-electricity-to-
kenyas-slums-hard-lessons-lead-to-great-gains
• Self-Generation and Households' Willingness to Pay for Reliable Electricity Service in
Nigeria
https://ideas.repec.org/a/aen/journl/ej38-4-oseni.html
Suggested
• Factors affecting household satisfaction with electricity supply in rural India
https://www.nature.com/articles/nenergy2016170
• Productive Use of Energy – PRODUSE. A Manual for Electrification Practitioners
http://www.euei-
pdf.org/sites/default/files/field_publication_file/150907_euei_productive-use-
manual_rz_04_web.pdf
• How to pay the bills? A survey of public attitudes to electricity tariff reform in
Rajasthan. GSI Report. 2016.
https://www.iisd.org/sites/default/files/publications/survey-public-attitudes-electricity-
tariff-reform-rajasthan.pdf