Abstract

This paper focuses on how demand response programs (DRPs) can be used in sub-Saharan Africa to resolve residential electricity management crises using Ghana as a case study with particular interest in retailer’s returns as against the flat rate tariff system in use. Applying an incentive-based DRP model on unit charge per kWh data for residential consumers of Ghana, our simulation results indicated that, retailers can improve their revenue by about 4% or more if DRPs are implemented. Thus, sub-Saharan African countries can introduce DRPs to solve their electricity management crises in their economies, optimize electricity usage and attract investors into the electricity sector.

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