The Profitability and Affordability of Smart Renewable Microgrid in Sub-Saharan Africa

Abstract

Sadly, in the twenty-first century, approximately 55% of the people living in sub-Saharan Africa do not have access to electricity. According to the International Energy Agency (IEA), the number of people without access to electricity in the world was 860 million by 2017, and 600 million of those people were from sub-Saharan Africa. Lack of access to electricity and shortage of electricity has negative impacts on the economy, environment, as well as the quality of healthcare and education of people in sub-Saharan Africa. This paper seeks to examine the factors that influence the profitability and affordability of smart renewable microgrid. Eliminating or reducing the barriers to profitability from an investor’s perspective and consumer affordability will help to accelerate implementation to achieve the UN Sustainable Development Goal 7 (SDG7) to ensure access to renewable, reliable, and affordable electricity to most people in sub-Saharan Africa and elsewhere by 2030. As a result, a significant improvement in the economic livelihoods of people in these regions.