Abstract

This dissertation explores rural electrification subsidies and the policies around them, with an objective of assessing whether there are opportunities to restructure, and therefore redistribute subsidies to a larger portfolio of technology options to accelerate rural electrification and improve energy justice. Redistribution of subsidy necessitates an understanding of the amount of subsidy and how it is distributed. To do this, a quantitative modeling framework that enables for a direct comparison between grid extension and mini grid based electrification pathways based on implicit subsidy required to make connections over a system lifetime was developed and is presented. Using this framework, our results show that by correctly matching communities with an appropriate technology option, rural electricity access rate could be at least 55% higher, and national electricity access rate could be at least 9.2% higher. A lot of studies assessing justice outcomes of subsidies on grid electricity have revealed inefficiencies. To realize the fully utility of electricity subsidies, it is important to understand beforehand what their likely impacts on distributional justice of electricity are. A second quantitative modeling framework which enables for assessment of justice outcomes of electricity subsidies ex-ante was developed to understand justice outcomes of three subsidy models; direct capital subsidy, concessional financing and supply side tariff subsidy as applied to mini grid systems. Results show that capital subsidy accelerates electrification, concessional financing slows electrification, while all create an additional burden on fiscal spending. Further, this dissertation explored likely consequences of a policy that requires mini grid operators to charge grid level tariff in the absence of subsidy for mini grids. The results reveal that mini grid customers may experience unreliable power supply as operators dispatch the systems such that they maximize profits. In the worst case scenario, some communities may experience de-electrification if the mini grid developers cannot realize positive returns. Overall, the results presented in this dissertation suggest that restructuring and distributing subsidies indiscriminately across technology options can help facilitate faster rural electrification, improve financial sustainability of mini grid developers, and hence improve energy justice.

Publication Date

8-2024

Document Type

Dissertation

Student Type

Graduate

Degree Name

Sustainability (Ph.D.)

Department, Program, or Center

Sustainability, Department of

College

Golisano Institute for Sustainability

Advisor

Nathan Williams

Advisor/Committee Member

Jay Taneja

Advisor/Committee Member

Eric Williams

Campus

RIT – Main Campus

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