Solar PV rural electrification and energy poverty assessment in Ghana: A principal component analysis

Type Report
Title Solar PV rural electrification and energy poverty assessment in Ghana: A principal component analysis
Author(s)
Publication (Day/Month/Year) 2007
URL https://www.econstor.eu/bitstream/10419/88352/1/578445719.pdf
Abstract
The relationship between solar photovoltaic (PV) rural electrification and energy poverty was assessed
using social, economic and environmental indicator-based questionnaires in 96 solar-electrified and 113 nonelectrified
households in rural Ghana. The purpose was to assess energy-poverty status of households with and
without solar PV systems, and to determine the factors that explain energy-poverty in off-grid rural households.
Principal component analysis (PCA) was used to construct energy-poverty index scores (EPIS). On the basis of the
results of the EPIS, about 80% of the non-electrified households were assessed as relatively energy poor compared
with only 10% of the solar-electrified households. Three significant indicators increased linearly with increasing
EPIS and therefore explained the variation in EPIS. They are monthly savings on lighting (r2
=0.214), number of
children who can sit around lighting (r2
=0.388) and amount paid to obtain lighting/electricity system (r2
=0.261). On
the contrary, EPIS decreased linearly with increasing monthly costs of kerosene, candles and dry-cell batteries. This
indicates that increasing expenditure on kerosene, candles and dry-cell batteries is likely to affect household
savings and investment in quality energy delivery systems that can increase EPIS. To improve EPIS, households
should invest a bit more in reliable and quality energy delivery systems, which can help to improve their quality of
life. The use of EPIS successfully demonstrated the difference in energy-poverty status between households with
and without solar PV. This lays down a basis of understanding the relationship between solar PV rural electrification
and energy poverty improvement in off-grid communities.

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