Nigeria has a vibrant and growing tech sector. In a survey of tech firms conducted in 2018, we find that most firms start small but grow quickly, more than doubling their size in the few years since the start of operations. Many are addressing inefficiencies in distribution of goods and services. But firms are still hampered by the business environment, notably unreliable electricity and lack of access to credit. Most suffer significant power outages, forcing them to purchase generators. Few firms have access to financial institutions or venture capitalists, relying instead on family and professional networks. Finally, tech firms employ very few women. While the Nigerian government has made the tech sector a priority, it needs to do more to improve the basics of the business environment. The government and the private sector must also take steps to increase the participation of women in the tech sector.
Bolivia, like many other fuel producers, subsidizes the domestic consumption of energy heavily, particularly oil and natural gas. This paper estimates the magnitude of the subsidies and offers an approximate picture of their incidence by income decile.
How Do African Firms Respond to Unreliable Power? Exploring Firm Heterogeneity Using K-Means Clustering - Working Paper 493
While previous studies have found a positive relationship between the reliability of power and firm growth, we find that such a clear relationship seems not to prevail. In other words, some firms are able to cope with an unreliable supply of power while many others do not.
If You Build It, Will They Consume? Key Challenges for Universal, Reliable, and Low-Cost Electricity Delivery in Kenya - Working Paper 491
Kenya’s rapid electrification in the past decade has improved the lives of millions, but significant challenges remain. This paper provides analysis that shows electrification can be improved by considering cheaper options that still meet the needs of low consumers and that low consumption is a first-order problem for the sustainability of utilities.
This paper explores the feasibility of commercial nuclear power in sub-Saharan Africa, especially in light of advanced nuclear technologies and their potential to overcome some of the challenges to deployment.
What Can We Learn about Energy Access and Demand from Mobile-Phone Surveys? Nine Findings from Twelve African Countries
We conducted phone-based surveys on energy access and demand in twelve African countries. From these findings, we draw several potential policy implications. First, both grid electricity and off-grid solutions currently are inadequate to meet many African consumers’ modern energy demands. Second, grid and off-grid electricity are viewed by consumers as complementary, rather than competing, solutions to meet energy demand. Third, a market exists for off-grid solutions even among connected, urban Africans.
This paper covers qualitative case studies from Iran, Nigeria, and India to illustrate a series of lessons for governments implementing subsidy reform policies. From these three country experiences, we find that fostering public support to implement lasting reform may depend on four measures: (1) forming a public engagement plan and a comprehensive reform policy that are then clearly communicated to the public in advance of price increases; (2) phasing in price adjustments over a period of time to ease absorption; (3) providing a targeted compensatory cash transfer to alleviate financial impacts on low- to middle-income households; and (4) capitalizing on favorable global macroeconomic conditions.
Todd Moss testified before the Senate Foreign Relations Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy, and Environmental Policy at a hearing titled “Energy and International Development” on November 1, 2017. During his appearance before the Committee, Todd detailed how US efforts to expand meaningful—modern—energy access in sub-Saharan Africa serve US interests and offered recommendations for strengthening Power Africa.
In the past decade, Ghana has experienced severe electricity supply challenges even though installed generation capacity has more than doubled over the period. The electricity supply challenges can be attributed to a number of factors, including a high level of losses in the distribution system as well as non-payment of revenue by consumers. Solving Ghana’s electricity challenges would require a range of measures.
This paper finds that end-user financing (i.e. consumer subsidies and tax rebates) is relatively ineffective at enhancing sales of off-grid solar technologies in India. If the government is to make meaningful progress toward its national goal to extend a constant supply of electricity to every household in the coming years, it will need to learn from and adapt its current financing structures for off-grid solar (and other renewable energy) technologies.
The Digital Transformation and Disruptive Technologies: Challenges and Solutions for the Electricity Sector in African Markets
The rise of disruptive technologies is profoundly transforming systems of production and management across sectors and industries, but primarily in wealthy countries. This paper considers how disruptive technologies could help improve power sector reform and development in African markets.
My family’s ancestral home in the village of Jakhan in India’s western state of Rajasthan exemplifies the challenges and opportunities of facilitating energy access in India. Though Rajasthan is perhaps the most densely populated desert on the planet, near Jakhan the population is spread more thinly, and electrification has been slow in coming. The dreams of people such as my grandparents, who wished to see central electricity access arrive at their doorstep, were unfortunately not met in time. My grandfather filed an application to have a grid connection reach his home in the 1970s. The connection came three decades after his passing. Today, over 300 million people still lack access to reliable centralized electricity in this nation of 1.2 billion people.
Energy is critical to human welfare, yet energy consumption in developing countries is extremely low relative to modern living standards. Conventional aid programs have invested in energy production with some success but also with many notable failures. This paper discusses how a distinctive approach to development aid—disbursing funds against improved outcomes—could make aid more effective in the energy sector. In particular, it explores the use of Cash on Delivery Aid (COD Aid) to resolve perennial difficulties encountered by conventional aid programs in energy sector development.
Power Africa has the potential to be transformative for millions of poor people and be the single biggest legacy in Africa for President Barack Obama. Observers now have roughly three years to reflect on the initiative: on what’s progressing well, what’s not, and where future risks may lie. While it is still too early to provide a complete analysis of outcomes, this report card provides a timely assessment at the close of this administration and an input to the next one. While the judgments of Power Africa are largely positive, the coming months will be crucial to keeping the effort on a positive trajectory.
More Than a Lightbulb: Five Recommendations to Make Modern Energy Access Meaningful for People and Prosperity
Energy is fundamental to modern life, but 1.3 billion people around the world live without “access to modern electricity.” The current definition of modern energy access—100 kilowatt-hours per person per year—is not enough for poor countries to meet their goals for human welfare and national economic growth.
More Than a Lightbulb: Five Recommendations to Make Modern Energy Access Meaningful for People and Prosperity (brief)
As late as 1930, only 1 in 10 rural Americans had access to electricity. In subsequent years, rapidly increasing power generation and growing the electrical grid across the country became major pillars of the American battle against domestic poverty and a foundation for decades of economic growth and wealth creation. Today, energy access is universal in the United States. Reliable and affordable electricity is considered a basic necessity of life, an indispensable input to almost every aspect of modern living.
That same transformation is possible today in large parts of the developing world, where lack of access to modern energy harms quality of life and constrains economic growth. A concerted policy effort by the United States could help unleash tremendous human and market potential around the world. Pushing to promote electricity generation and access could significantly contribute to doing good in developing countries — and doing well for the United States.
Balancing Energy Access and Environmental Goals in Development Finance: The Case of the OPIC Carbon Cap
The international community has ambitious goals for responding to climate change and increasing global access to energy services. To date, these agendas have been viewed to be largely complementary. However, policy makers are now facing more explicit interactions between environment, energy, and economic and social development objectives and associated trade-offs.