Abstract
This research was completed in conjunction with the Water Research Commission and the OR Tambo District Municipality within the Eastern Cape Province of South Africa.
Highlights
The major role that access to energy services plays in economic development is generally recognised
If the development of the small-scale hydropower (SSHP) is by a nonprofit organization or a government grant and revenue is only obtained to cover the initial capital cost and operation and maintenance costs, the feasibility of the project will be determined by a positive Net present value (NPV)
If the development of the SSHP is for rural electrification for remote communities not connected to the local or national electricity grid, a cost/benefit ratio of less than 1 will determine the feasibility of the project
Summary
The major role that access to energy services plays in economic development is generally recognised. The linkages between the provision of energy and poverty alleviation through economic development are not fully understood and it can be argued that this lack of understanding contributes to the relatively slow pace of energisation of the African continent (Szewczuk, 2010). The South African Government is committed to universal access to electricity across South Africa. Feasible grid electricity is being extended as far as is possible into the rural areas. Large numbers of households and communities will not be connected to the national electricity grid for the foreseeable future due to high cost of transmission and distribution systems to remote communities, the relatively low electricity demand within rural communities and the current expenditure on upgrading and constructing of new coal-fired power stations
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