An Evaluation of Dynamic Electricity Pricing for Solar Micro-Grids
In Rural India

Energy Strategy Reviews

29 Pages Posted:  

Sini Numminen

Aalto University - School of Science

Semee Yoon

Yonsei University - UIC & Graduate School of International Studies

Peter Lund

Aalto University School of Science

Johannes Urpelainen

Johns Hopkins SAIS

Date Written: June 9, 2018

Abstract

Stand-alone photovoltaic systems provide a potentially sustainable option for rural electrification, but the design and management of these systems is a challenge. Here we examine the ability of dynamic (real-time) pricing in off-grid systems to improve the durability of the batteries used to store power. In a randomized controlled trial with a pre-paid solar micro-grid in rural India, we found that dynamic pricing did not improve technical performance or customer satisfaction. The best explanation for the null finding is that, for various reasons, households minimized their power consumption and there was thus little need for demand management. These findings suggest that the low demand for power is a key challenge for the profitability of pre-paid off-grid systems.

Keywords: India, energy access, solar power, distributed energy, demand management, field experiment

Suggested Citation

Numminen, Sini and Yoon, Semee and Lund, Peter and Urpelainen, Johannes, An Evaluation of Dynamic Electricity Pricing for Solar Micro-Grids In Rural India (June 9, 2018). Energy Strategy Reviews. Available at SSRN: https://ssrn.com/abstract=

Sini Numminen

Aalto University - School of Science ( email )

Otakaari 1
Espoo, FI-00076
Finland

Semee Yoon

Yonsei University - UIC & Graduate School of International Studies ( email )

Seoul

Peter Lund

Aalto University School of Science ( email )

Espoo
Finland

Johannes Urpelainen (Contact Author)

Johns Hopkins SAIS ( email )

1740 Massachusetts Avenue, NW
Washington, DC 20036-1984
United States

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