How to Enhance Energy Services in Informal Settlements? Qualitative Comparison of Renewable Energy Solutions

Abstract

More than half of the urban population of Sub-Saharan Africa lives in informal housing conditions. While urban areas are, in general, characterized by a high electrification rate, residents of informal settlements are still affected by energy poverty, the use of traditional energy sources and unreliable electricity supply. The aim of the study is to give an overview of different renewable-energy-based solutions which are able to improve local energy provision. These are Solar Home Systems, Mini-Grids, and Energy-Hubs. The technologies are compared to another option for improving energy supply, namely Grid Expansion. The analysis is based on 24 Key Performance Indicators, which can be classified into technical, economic, environmental, social, and political dimensions. The selection of indicators is based on the challenges prevalent in informal settlements that impede a comprehensive, sustainable energy supply. The literature-based indices are used to determine which of the four technologies is a suitable solution for minimizing the challenges prevailing in informal settlements. The resulting matrix provides a holistic comparison and serves as a decision aid in selecting the appropriate technology for future projects in informal settlements, depending on local conditions and the needs of the population. The results show that the Energy-Hub is a valid alternative for energy supply improvement in Informal Settlements.