Cleantech Market Intelligence
Solar PV Helps Eliminate Kerosene Lamps
About 250 million households, representing 1.3 billion people, lacked reliable access to electricity to meet basic lighting needs in 2010, according to the International Energy Agency. Until recently, kerosene lamps were one of the few options for illumination in communities with household income as low as $2 per day. Kerosene is highly detrimental to health and the environment, subjecting people to multiple pollutants, including fine particulate matter, formaldehyde, carbon monoxide, polycyclic aromatic hydrocarbons, sulfur dioxide, and nitrogen oxides. Exposure to these pollutants can result in an increased risk of respiratory and cardiovascular diseases, cancer, and death. Despite these hazards, kerosene is the leading source of illumination for most people in developing countries.
There’s now growing momentum to displace the estimated 4 billion to 25 billion liters of kerosene used each year, driven by a combination of government policy, clean energy businesses, and investment. Kenya, Ghana, India, and Nigeria are a few of the countries that have announced initiatives to phase out kerosene and replace it with solar and other clean energy options, as covered in Navigant Research’s report, Solar Photovoltaic Consumer Products.
- Kenya’s kerosene phase-out program, announced in 2012, aims to eliminate the use of kerosene for lighting and cooking, replacing the fuel with clean energy products. Norway has pledged $44.5 million toward the initiative.
- India’s National Solar Mission seeks to achieve 20 GW of solar power by 2022, in part through the installation of rooftop PV systems. It has also set the specific goal of providing 20 million solar lighting systems in place of kerosene lamps to rural communities, with the goal of reaching an estimated 100 million people.
- The Ghana Solar Lantern Distribution project provides subsidies to support sales of 200,000 solar lanterns between 2014 and 2016 using money formerly allocated for fuel subsidies.
Kerosene remains the most important lighting fuel for off-grid and under-electrified households and small businesses in Africa, and accounts for approximately 55% of total lighting expenditure for those living on less than $2 per day, according to Lighting Africa. Kerosene has been increasing as a percentage of household expenditure. Ted Hesser developed the following chart with data from the United Nations, Saviva Research, World Bank, and the U.S. Energy Information Administration, highlighting the growth in kerosene prices. Between 2000 and 2012, kerosene prices increased 240% in the developing world, from an average price of roughly $0.50 per liter in 2000 to about $1.20 per liter in 2012. In high-cost markets – including Burundi, Guatemala, and Panama – kerosene costs can be as high as $1.80 to $2.10 per liter.
Price of Kerosene by Country, Selected World Markets: 2000-2012
(Source: Ted Hesser)
The climate impact of kerosene lamps has been dramatically underestimated by considering only CO2. Recent studies estimate that 270,000 tons of black carbon (i.e., fine particulate matter that results from the incomplete combustion of fossil fuels, biofuels, and biomass) are emitted from kerosene lamps annually – leading to a warming equivalent of about 4.5% of U.S. CO2 emissions and 12% of India’s, according to a Brookings Institute study.
The Brookings study points out that kerosene lamps are not the largest emitters of black carbon. The leading source is residential burning of solid fuel, such as wood and coal for cooking – which emits 6 times more black carbon than lamps. Similarly, diesel engine black carbon emissions are 5 times that of lamps.
Solar PV and other lower-emissions consumer products, such as improved cook stoves, are making their way to the market through a variety of private, non-profit, and public initiatives. Education and awareness of the options available to consumers are the biggest challenges to changing the behavior of customers in remote communities. But the combination of new business models, government leadership, and technical innovation are leading to a growing number of success stories that could lead to significant reductions in black carbon emissions.