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Resources 2015, 4(3), 673-691; doi:10.3390/resources4030673

The Influence of Diesel Fuel Subsidies and Taxes on the Potential for Solar-Powered Hybrid Systems in Africa

Reiner Lemoine Institute, Ostendstraße 25, Berlin 12459, Germany
These authors contributed equally to this work.
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Academic Editor: Damien Giurco
Received: 6 June 2015 / Accepted: 24 August 2015 / Published: 31 August 2015
(This article belongs to the Special Issue Alternative Energy Sources in Developing and Developed Regions)
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Abstract

Many people in African countries lack access to sufficient electricity supply due to missing infrastructure of the centralized conventional power generation system. In order to provide electricity to a wider part of the population, it is necessary to exploit the vast renewable resources in African countries. Therefore, this paper scrutinizes the economic advantages of photovoltaic-based hybrid systems over fossil fuel-based power generation. A simulation model is applied in order to calculate the cost advantage of hybrid systems compared to diesel-only systems for the entire continent on a long term basis by applying two scenarios: one based on world market diesel prices and the other one based on national diesel prices. The results indicate that average power generation costs per country can be reduced by up to 0.11 €/kWh considering world market diesel prices and by up to 0.48 €/kWh considering national diesel prices. Furthermore, the effect of diesel fuel subsidies and taxes on the renewable energy potential and the respective savings are examined. These findings may ameliorate the policy development according to fossil fuel subsidies and taxes and demonstrate the advantages of decentralized renewable hybrid systems especially in rural areas of Africa. View Full-Text
Keywords: alternative energy sources; developing regions; hybrid energy system; economic analysis; energy systems; modelling; rural electrification; developing countries alternative energy sources; developing regions; hybrid energy system; economic analysis; energy systems; modelling; rural electrification; developing countries
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Bertheau, P.; Cader, C.; Huyskens, H.; Blechinger, P. The Influence of Diesel Fuel Subsidies and Taxes on the Potential for Solar-Powered Hybrid Systems in Africa. Resources 2015, 4, 673-691.

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