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CLOSE THIS BOOKBasic Electrification for Rural Households - GTZ's Experience with the Dissemination of Small-Scale Photovoltaic Systems (GTZ, 1992, 28 p.)
VIEW THE DOCUMENT(introduction...)
VIEW THE DOCUMENTForeword
VIEW THE DOCUMENT1. Background information and recommendations
VIEW THE DOCUMENT2. Photovoltaics as an energy option for rural areas: benefits and over all social and economic context
3. PV systems for supplying electric power to rural households
VIEW THE DOCUMENT4. The demand situation of potential shs target groups
VIEW THE DOCUMENT5. Criteria for assessing the economic feasibility and financing options for solar home systems
6. An appropriate dissemination strategy for shs and the role of GTZ
VIEW THE DOCUMENT7. References

2. Photovoltaics as an energy option for rural areas: benefits and over all social and economic context

GTZ is currently implementing more than 20 projects In the Third World in which photovoltaics plays an important role. As of 1991, PV systems of various types with a total output of about 400 kWp had been installed in GTZ projects, and current plans call for this figure to be doubled to around 800 kWp by the year 1993.

Components of a photovoltaic system

The illustration on the left shows the structure of a simple photovoltaic system. In most instances, solar generators must be supplemented by storage batteries and electronic charging/regulating devices.

Graphic: Siemens

However, photovoltaics as an energy source for rural areas must be seen within the following overall context:

- Over 90 % of the energy consumed by rural households is used for cooking. Photovoltaic systems are not suitable for meeting these needs.

- Nonetheless, the way in which these households obtain the remaining 10 % of their energy requirements has a major impact on the quality of life in rural areas. For example, the inhabitants of such areas attach great importance to having modem lighting in their dwellings and having access to modem communications media such as radio and television, and the requisite electric power can be supplied by the environmentally friendly photovoltaic technology.

- Although the target group of dissemination measures includes the poorest of the poor in developing countries, investments in this superior technological option are still worthwhile because this target group presently spends a large part of its scarce monetary resources on traditional energy sources. Over time, photovoltaic systems will cost the same as the traditional options they are now using, but the PV technology supplies a form of energy that is not only of much higher quality; It is also more reliable than the conventional alternatives and exposes the users to far fewer health risks than those alternatives.

The amounts which households now spend on kerosene and dry-cell batteries are roughly equivalent to what they would have to pay in order to finance a photovoltaic system under annuity conditions (see Table 1). From the point of view of household energy consumers, however, there is an important difference between the two options: With the one they are burdened with a long-term financial obligation involving the repayment of a sizeable debt, while with the other they are free to purchase conventional energy sources on an ad hoc basis in accordance with their needs and financial resources. Thus, the question of financing is of crucial importance for the success of dissemination measures for PV systems which are aimed at low-income segments of the population.

Smaller photovoltaic systems in particular - which are generally referred to as solar home systems (SHS) - have a number of secondary benefits that are important in terms of both raising the individual users' living standards and helping to narrow the existing gap between urban and rural areas in terms of their level of infrastructural development. Although their direct impact on national energy balances will be small for a long time to come, the use of SHS can conserve conventional energy resources and at the same time yield indirect energy savings, e. 9. by eliminating the necessity of transporting batteries. They can also be expected to produce tangible environmental benefits.

The introduction of SHS leads to a noticeable improvement in the users' standard of living, above all through positive impacts that cannot easily be measured in monetary terms:

- Significantly better light is available, with benefits such as reduced eye strain.

- The smoke and fire hazards in the home that are associated with traditional indoor light sources (e. 9. candles, oil lamps) are eliminated.

- There is no danger of children burning themselves if they come in contact with the light source.

- A constant, reliable supply of energy is ensured.

- The improved light makes it possible for the members of the household to engage in productive activities during the evening hours.

- SHS are a much more environmentally friendly source of electricity than dry-cell batteries, which contain highly toxic substances and often end up as "toys" in the hands of children or are disposed of in such a way that they pollute sources of drinking water or the soil in livestock grazing areas.

- The utilization of SHS also gives users the feeling that they are participating in, and benefiting from, technical progress.

- Although automobile batteries are already being used for lighting and to power devices such as television sets, their service life is greatly prolonged when they are utilized as part of an SHS: When they are recharged with standard battery chargers like those found in car repair shops, they are often charged too rapidly, and in many cases the users wait too long to have their batteries recharged, thus allowing them to deep discharge to a dangerously low level. Moreover, with SHS the heavy, cumbersome batteries do not need to be regularly disconnected and transported to a charging facility, a time-consuming and sometimes difficult task.

The fact that small photovoltaic systems are available on a large scale and are an affordable option for a significant percentage of the rural population means that measures that will significantly enhance the quality of people's life can now also be carried out in the countryside. Indeed, with photovoltaics the energy supply situation in remote rural areas can be improved to the point that the gap between rural and urban dwellers in terms of the basic material comforts and overall "lifestyle" which they enjoy is visibly narrowed. Moreover, when SHS are utilized, individualized systems can often be supplied which meet the needs of specific consumers and can also be largely financed by the users, resulting in savings for the government (cheaper than state-subsidized grid-based electrification programs). This is an especially attractive option for rural areas that are not likely to be connected to the national or regional power grid in the foreseeable future (i. e. the promotion of individual household electrification using SHS is a viable rural energy policy).

There are still only a very small number of photovoltaic systems In operation in developing countries, and they have only a negligible impact on national energy consumption. But photovoltaic systems can help to reduce the adverse effects of conventional energy consumption on the climate and the environment if they are mass-produced and employed on a large scale not only in the countryside but also in urban areas. For instance, they can greatly reduce the pollution caused by the improper disposal of dry- cell batteries, millions of which are currently decaying and releasing their toxic contents (heavy metals) into the soil and the groundwater in developing countries. This type of environmental degradation can be avoided by using SHS, although it is usually first necessary to establish a recycling system for the storage batteries that are used in the systems.

Thus, the decision for or against the utilization of decentralized photovoltaic systems will be based on an assessment of factors that operate at three different levels:

- Micro-economic feasibility, i. e. for individual households.

- Economic benefits accruing to user households, taking into account the positive impacts on individual consumers' overall standard of living, including those which are usually unquantifiable, i. e. difficult or impossible to express in monetary terms.

- Macro-economic cost-benefit considerations.

When contemplating the initiation of a broad-based dissemination campaign, energy planners must take all three of these levels into account if they are to arrive at an accurate assessment of both the campaign's prospects for success (- acceptance by users) and the desirability of large-scale dissemination from the stand-point of the economy as a whole. Certain parameters are difficult to quantify but they nevertheless have a major influence on the target group's attitude toward the technology; these factors include subjective judgements as to whether or not it is advantageous to own photovoltaic systems, and here criteria such as "modern" (= taking part in technical progress) and "prestigious" will play an important role in the thinking of members of rural middle and upper classes. In the eyes of these target groups, the fact that the SHS technology is a "time saver" and is "more convenient" than the conventional energy technologies which it substitutes can also be an important selling point.

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