Understanding demand (price elasticity) and supply (economies of scale) functions for a more financially sustainable rural electrification sector | ||||||
Working Paper note Sep 2023 ; 18 pages ![]() Ed. Inensus - Goslar Téléchargeable sous format: PdF ![]() Téléchargeable chez l'éditeur ![]() Abstract: Price elasticity of electricity demand has so far been widely neglected by most stakeholders in the mini-grid sector, leading to false conclusions regarding the effect of tariff adjustments on revenue, or the impact of grant funding/RBF instruments on tariffs. Collaterally, as demand was considered to be fixed, the potential benefits of economies of scale in mini-grids have also re mained under-investigated. This document is a project proposal summarizing the stakes of price elasticity and seeking to: a) generate a much better understanding of demand and supply patterns in mini-grids, and b) explore the regulatory and financial implications of such patterns. Contents: Executive Summary p.2 Problem Statement p.3 Implications: where could we go from here? p.9 Proposed project description p.10 Annex: case studies p.13 Publics-Cibles:
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