Promoting West African Ownership of the Power Sector: Alternative Financing for Distributed Generation of Renewable Electricity

Abstract

Centralized generation remains the prevailing approach to expanding electrification in West Africa. In contrast, distributed generation (DG) of renewable electricity emphasizes generation close to the point of consumption and offers possibilities for more effective models. However, its adoption remains ad hoc and marginal despite significant advancement in the technologies. This article provides an overview of DG, its costs, and the market failures associated with adoption. We discuss specific financing mechanisms that could make DG affordable in West Africa. Finally, we recommend DG as a viable paradigm for electricity planning that is more amenable to flexible financing, local ownership, and widespread electrification.

KEYWORDS:

• distributed generation
• financing
• micro-finance
• ownership
• renewable resources
• sustainability
• widespread electrification

Notes

From Thiam (2010) (The referenced report provides the final LCOE values in FCFA. We used the conversion rate of $1 US = 489.207 FCFA listed in the article).

HTAs are community associations formed by migrants in the host countries who channel collective remittances for development.