Access to electricity and a reliable supply of energy are essential elements of local economic development and poverty reduction. To address these challenges, appropriate policies and mechanisms at the national and regional levels need to be implemented. In this study, we used Johanson cointegration and Granger causality techniques to examine the different cointegration and causal relationships that exist between the growth of electricity consumption (CE) and socio-economic parameters (GDP, tertiary GDP, GDP per capita, number of households, number of subscribers and population) in Cameroon during the period from 1975 to 2011. The results from the software Eviews 7.2 show that there are cointegration relationships between electricity consumption and socio-economic indicators (LGDPH, LPO and LS) thus reflecting the long-term relationship between socio-economic growth and electricity consumption (CE). Consumption growth could, therefore, follow socio-economic growth. In addition, the analysis of the Granger causality test results reveals that there is a unidirectional causal relationship of macroeconomic indicators towards electricity consumption. That is, LGDPG to LCE, LGDPH to LCE, and LGDPT to LCE. There is also a unidirectional relationship between LCE and the demographic indicators that is the relationship of LCE to LS (number of subscribers). We can, therefore, conclude that the indicators that have a better influence on electricity consumption are the overall GDP for the macroeconomic indicators and the population for the socio-demographic indicators respectively. In addition, the analysis of renewable energy potential (EnRs) shows us that Cameroon enjoys good irradiation throughout its territory, hence its high solar potential. The wind speed is unevenly distributed over the territory, it has an average speed in the region of the very north of the country, but a low speed in the rest of the territory, which justifies the low wind potential in the country. We also noticed that the forest is concentrated in the southernmost part of the country, mainly in the eastern and southern regions. After study, we concluded that it is possible to truncate thermal power plants with renewable energy plants. We proposed to trade the thermal power stations of additions by biomass plants. We also offer hybrid solar-biomass power plants for isolated power plants; and solar-wind hybrid power plants for the Far North region of the country, given its strong wind power potential. We also identified the sources of over-consumption and estimated the amount of energy that could be saved by developing an energy efficiency plan (10%) with the standard scenario that would take into account good energy-saving practices. We then estimated at 336,938 Kg the gain in CO2 emissions if we exchanged the thermal power stations into EnRs. Recommendations are then suggested for the successful implementation of an energy efficiency plan and implementation of renewable energy in Cameroon.
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