2012 international year for sustainable energy for all: African Frontrunnership in rural electrification

2012 has been declared the “International Year for Sustainable Energy for All” by the UN. While Africa remains the most ‘underpowered’ continent, the prognosis for a brighter future is looking good, as key stakeholders (governments, private sector, civil society, and the donor community) have mobilized at an unprecedented scale to experiment with new policies, regulatory frameworks, and business models to rapidly upscale access to sustainable energy. The top-down, central grid expansion approach to increasing electricity access is very capital intensive and yet has gained considerable momentum at the expense of lower cost options that utilize decentralized off-grid solutions. A decentralized bottom-up approach could also use indigenous renewable energy sources and foster more significant linkages with livelihood opportunities in the rural un-served territories. This paper evaluates the emerging experiments through the lenses of C.K. Prahaladʹs “bottom of the pyramid” theory and Clayton Christensenʹs “disruptive technologies” perspective. Three front-runner initiatives involving new business models, innovative technologies, and institutional capacity building will be analyzed. In addition, the paper examines a regulatory policy initiative designed to stimulate clean energy investments in Ghana. Though the examples are all from Ghana, they illustrate general challenges to sub-Saharan Africa as a whole.