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| | + | | style="width: 250px; background-color: rgb(72,177,69)" colspan="2" | '''<font color="#ffffff"><span style="font-size: 16px"></span></font>'''<p style="text-align: center">'''<font color="#ffffff"><span style="font-size: 16px">SOFTWARE UPDATE ANNOUNCEMENT: 30 AUG - 10 SEP</span></font>'''<font color="#ffffff"><span style="font-size: 16px"></span></font><br/></p> |
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| − | = Introduction =
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| − | In recent years, innovative financing schemes like [[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|Pay-as-you-go (PAYG)]] have made picoPV products affordable and easily available to the most remote population of the world. This proliferation of picoPV products have further been supported by the increased awareness about the negative effects of kerosene on health, environment and finances.<br/>
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| − | This article explores how the recent boom of picoPV market has affected the traditional kerosene and candle market.
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| − | = Kerosene Market =
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| − | [[File:Share of Population without Access to Grid.png|thumb|360px|Figure 1: Share of population without access to grid]] Since mid 19th century, kerosene has been used for lighting purposes all over the world. This situation changed in developed countries with the introduction of electricity in mid 20th century. However, in developing countries, kerosene is still the dominant fuel used for lighting purposes. <ref name="Nicholas L. Lam et al., “Kerosene: A Review of Household Uses and Their Hazards in Low-and Middle-Income Countries,” Journal of Toxicology and Environmental Health. Part B, Critical Reviews 15, no. 6 (2012): 396–432, doi:10.1080/10937404.2012.710134.">Nicholas L. Lam et al., “Kerosene: A Review of Household Uses and Their Hazards in Low-and Middle-Income Countries,” Journal of Toxicology and Environmental Health. Part B, Critical Reviews 15, no. 6 (2012): 396–432, doi:10.1080/10937404.2012.710134.</ref><br/>
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| − | In 2016 1.2 billion people were not connected to the power grid and thus, were dependent on external sources such as candles and kerosene for meeting their lighting needs. '''Similarly, USD 27 billion is spent annually on lighting and mobile phone charging services using kerosene, candles, battery torches or other fossil fuel-powered technologies. <ref name="GOGLA, “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data July-December 2016,” n.d., 7, https://www.gogla.org/sites/default/files/recource_docs/final_sales-and-impact-report_h22016_full_public.pdf.">GOGLA, “Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data July-December 2016,” n.d., 7, https://www.gogla.org/sites/default/files/recource_docs/final_sales-and-impact-report_h22016_full_public.pdf.</ref>The poor households usually pay for lighting services in the range of USD 100 per kilowatt-hour which is more than a 100 times the amount people in rich countries pay. <ref name="UNEP/GEF, United Nations Environment Programme and Global Environment Facility, “Developing Effective Off-Grid Lighting Policy,” 2015, 5, http://www.enlighten-initiative.org/portals/0/documents/Resources/publications/Guidance%20note%20OGL_en.lighten_English_2016-01-08.pdf.">UNEP/GEF, United Nations Environment Programme and Global Environment Facility, “Developing Effective Off-Grid Lighting Policy,” 2015, 5, http://www.enlighten-initiative.org/portals/0/documents/Resources/publications/Guidance%20note%20OGL_en.lighten_English_2016-01-08.pdf.</ref>Households also use approximately 4 to 25 billion liters of kerosene annually for lighting purposes. <ref name="Elizabeth Tedsen, “Black Carbon Emissions from Kerosene Lamps: Potential for a New CCAC Initiative,” 2013, 2, http://www.ccacoalition.org/sites/default/files/resources/black-carbon-and-kerosene-lamps-study.pdf.">Elizabeth Tedsen, “Black Carbon Emissions from Kerosene Lamps: Potential for a New CCAC Initiative,” 2013, 2, http://www.ccacoalition.org/sites/default/files/resources/black-carbon-and-kerosene-lamps-study.pdf.</ref>'''
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| − | Figure 2 and Figure 3 shows the annual spending on off-grid lighting and phone charging in Africa and Asia respectively. The data shows that kerosene and candles have a huge market presence in African and Asian countries, more than 10 billion market in Africa and more than 3 billion market in Asia. <ref name="Bloomberg New Energy Finance, Lighting Global, and Global Off-Grid Lighting Association, “Off-Grid Solar Market Trends Report 2016,” 2016, 4, https://www.energynet.co.uk/webfm_send/1690.">Bloomberg New Energy Finance, Lighting Global, and Global Off-Grid Lighting Association, “Off-Grid Solar Market Trends Report 2016,” 2016, 4, https://www.energynet.co.uk/webfm_send/1690.</ref>It is important to note that in many countries such as India and Nepal, the government has even subsidized kerosene to make it affordable for the poorest population. In Nigeria, the amount the government spends on kerosene subsidy is more than that for security, critical infrastructure, human capital human capital development, and land and food security combined.<ref> UNEP DTU Partnership, “The Emerging Market for Pico-Scale Solar PV Systems in Sub-Saharan Africa,” n.d., 8, https://www.gogla.org/sites/default/files/recource_docs/market-pico-solar_web.pdf.</ref>The subsidy on kerosene also creates illegal black market as kerosene is often trafficked from countries where it is subsidised to the neighbouring ones where it is not subsidized.<ref name="Lam et al., “Kerosene: A Review of Household Uses and Their Hazards in Low-and Middle-Income Countries.”">Lam et al., “Kerosene: A Review of Household Uses and Their Hazards in Low-and Middle-Income Countries.”</ref>
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| − | | [[File:Annual Spending on Off-grid Solutions in Africa.JPG|thumb|right|300px|Figure 2: Annual spending on off-grid lighting and phone charging in Africa in 2014 in USD billion(estimated)]]
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| − | | [[File:Annual Spending on Off-grid Solutions in Asia.JPG|thumb|300px|Figure 3: Annual spending on off-grid lighting and phone charging in Asia in 2014 in USD billion(estimated)]]
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| − | Hence, kerosene is still a dominant fuel in developing countries. Nevertheless, with the increasing popularity of picoPV products, they have an opportunity to tap into the kerosene market and replace kerosene as lightning source.
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| − | = Transition from Kerosene to LED Lamps using Dry-Cell Batteries =
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| − | The kerosene and candles market (for lighting) in African context has not only been affected by the penetration of picoPV products but also by the easy availability of low-cost LED lamps using dry-cell batteries. In recent years (after 2008), battery based LED lights have largely penetrated the rural market in many African countries, particularly in West African countries and have replaced kerosene and candles, without any incentives from external government or non-governmental organisations. However, this transition from kerosene and candles to LED lights has largely been unnoticed as the official censuses do not count dry-cell based LED lamps as a lighting option.<ref name="Gunther Bensch, Jörg Peters, and Maximiliane Sievert, “The Lighting Transition in Africa – From Kerosene to LED and the Emerging Dry-Cell Battery Problem,” n.d., 4, http://en.rwi-essen.de/media/content/pages/publikationen/ruhr-economic-papers/rep_15_579.pdf.">Gunther Bensch, Jörg Peters, and Maximiliane Sievert, “The Lighting Transition in Africa – From Kerosene to LED and the Emerging Dry-Cell Battery Problem,” n.d., 4, http://en.rwi-essen.de/media/content/pages/publikationen/ruhr-economic-papers/rep_15_579.pdf.</ref>
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| − | The LED lights have high efficiency and low energy consumption as compared to kerosene or candles. However, the output of the individual LED lamps vary depending on the number of diodes, performance of diodes and dry-cell batteries. Figure 4 shows different types of lighting sources and their performance.<ref name="Gunther Bensch, Jörg Peters, and Maximiliane Sievert, “The Lighting Transition in Africa – From Kerosene to LED and the Emerging Dry-Cell Battery Problem,” n.d., 10, http://en.rwi-essen.de/media/content/pages/publikationen/ruhr-economic-papers/rep_15_579.pdf.">Gunther Bensch, Jörg Peters, and Maximiliane Sievert, “The Lighting Transition in Africa – From Kerosene to LED and the Emerging Dry-Cell Battery Problem,” n.d., 10, http://en.rwi-essen.de/media/content/pages/publikationen/ruhr-economic-papers/rep_15_579.pdf.</ref>
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| − | [[file:Types of Lighting Sources and their Performance.png|300px|thumb|Figure 4: Types of lightning sources and their performance]]
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| − | = References =
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| − | [[Category:Energypedia]]
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