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| 1 |
ID:
166304
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| Summary/Abstract |
Energy efficient lighting confers significant potential in electricity demand reduction. To increase the diffusion of energy efficient lighting, an LED Replacement Lamps Program is proposed. Free of charge LED lamps are suggested to be distributed to households by government to reduce household electricity demand. Because electricity is heavily subsidized in Iran, the direct benefit of the program for the government will be avoiding the energy subsidy payments. Back-of-the-envelope benefit cost analysis suggests that if potential electricity savings are realized, the program will be profitable. However, the possible rebound effect may negatively impact the program effectiveness through partially offsetting the potential electricity savings. Therefore, the viability of the program depends on the actual electricity savings that may differ from its anticipated levels. A hybrid dynamic general equilibrium model is employed to evaluate the actual economy-wide energy savings. The model has the novelty of endogenously calculating useful energy demand (e.g. lighting, cooling). Energy demand is then derived based on end-use efficiency and useful energy demand. Model results indicate an average economy-wide rebound of 43.8%. Even though the rebound value is high, the program is shown to be profitable.
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| 2 |
ID:
133084
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| Publication |
2014.
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| Summary/Abstract |
Despite frequent blackouts and brownouts, extension of the central grid remains the Indian government×s preferred strategy for the country×s rural electrification policy. This study reports an assessment that compares grid extension with distributed generation (DG) alternatives, based on the subsidies they will necessitate, and costs of service interruptions that are appropriate in the rural Indian context. Using cross-sectional household expenditure data and region fixed-effects models, average household demand is estimated. The price elasticity of demand is found to be in the range of ?0.3 to ?0.4. Interruption costs are estimated based on the loss of consumer surplus due to reduced consumption of electric lighting energy that results from intermittent power supply. Different grid reliability scenarios are simulated. Despite the inclusion of interruption costs, standalone DG does not appear to be competitive with grid extension at distances of less than 17 km. However, backing up unreliable grid service with local DG plants is attractive when reliability is very poor, even in previously electrified villages. Introduction of energy efficient lighting changes these economics, and the threshold for acceptable grid unreliability significantly reduces. A variety of polices to promote accelerated deployment and the wider adoption of improved end-use efficiency, warrant serious consideration.
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