Abstract
The paper evaluates solar powered microgrids as a candidate solution for rural electrification in Pakistan where over 51 million people still live off-grid. Microgrids can significantly reduce the cost of providing basic electrification and may also be scaled up to provide higher levels of services efficiently through energy and cost sharing. A census of 6 off-grid villages highlights the demand for electrification. On average household report a willingness to pay of USD 1.78 per month for the provision of high quality lighting and USD 3.24 per month for the addition of a fan. Furthermore, households are willing to pay an additional USD 0.89 per month for a communal load. First order cost calculations show that this demand can be met through the use of various solar topologies, in particular decentralised microgrids by local entrepreneurs with suitable public sector subsidies. Recommendations to modify the current legal framework are also presented, so as to provide an enabling environment for rural electrification through solar microgrids.
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