Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh
Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh
Off-grid rural and remote area electrification through decentralized renewable hybrid mini-grids (HMG) has been prioritized in the recent national renewable energy policy of Bangladesh. Research was carried out to explore the actual customer willingness to pay (WTP) for the electricity to be supplied by such HMGs, while considering a wide spectrum of socioeconomic factors. Door to door household survey was conducted using structured questionnaire to collect respondent data in December 2015 from six off-grid villages under three different administrative districts. Wide variations in current cost of kerosene based lighting and expected load demand were observed among different income groups. Average monthly cost of lighting ranged between USD 3.0 to USD 9.24 and expected electricity usages as 3.60 kWh and 33.76 kWh. Families with higher income showed least mean satisfaction with kerosene lighting. However, strong mean willingness to switch HMG has been identified regardless of income status. The dichotomous choice contingent valuation method (CVM) was applied for this purpose. The maximum WPT value (USD 0.432/kWh) identified here indicates that a sustainable tariff model can be applied for attracting private investment in this sector.
433-446
Alam, Majbaul
4ae5e89d-1588-461f-be4c-8bdbc39b8b2c
Bhattacharyya, Subhes
249497ed-d158-47a8-9daf-6e4d02c4f4c2
15 November 2017
Alam, Majbaul
4ae5e89d-1588-461f-be4c-8bdbc39b8b2c
Bhattacharyya, Subhes
249497ed-d158-47a8-9daf-6e4d02c4f4c2
Alam, Majbaul and Bhattacharyya, Subhes
(2017)
Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh.
Energy, 139, .
(doi:10.1016/j.energy.2017.07.125).
Abstract
Off-grid rural and remote area electrification through decentralized renewable hybrid mini-grids (HMG) has been prioritized in the recent national renewable energy policy of Bangladesh. Research was carried out to explore the actual customer willingness to pay (WTP) for the electricity to be supplied by such HMGs, while considering a wide spectrum of socioeconomic factors. Door to door household survey was conducted using structured questionnaire to collect respondent data in December 2015 from six off-grid villages under three different administrative districts. Wide variations in current cost of kerosene based lighting and expected load demand were observed among different income groups. Average monthly cost of lighting ranged between USD 3.0 to USD 9.24 and expected electricity usages as 3.60 kWh and 33.76 kWh. Families with higher income showed least mean satisfaction with kerosene lighting. However, strong mean willingness to switch HMG has been identified regardless of income status. The dichotomous choice contingent valuation method (CVM) was applied for this purpose. The maximum WPT value (USD 0.432/kWh) identified here indicates that a sustainable tariff model can be applied for attracting private investment in this sector.
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Accepted/In Press date: 19 July 2017
e-pub ahead of print date: 8 August 2017
Published date: 15 November 2017
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Local EPrints ID: 479556
URI: http://eprints.soton.ac.uk/id/eprint/479556
ISSN: 0360-5442
PURE UUID: 2303f9af-684f-4753-97ca-46c057a6d4da
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Date deposited: 26 Jul 2023 16:37
Last modified: 17 Mar 2024 00:41
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Author:
Majbaul Alam
Author:
Subhes Bhattacharyya
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