For more than 1.5 billion people around the world, reliable electricity is an inaccessible necessity. Populations regularly rely on petrol and diesel backup generators as a stopgap.
It is estimated that 25 million generators are deployed within developing economies, with 75% of generators globally operated in areas with grid connection (source IFC). In sub-Saharan Africa, back-up generators make up 9% of total electricity consumed, rising to 40% in West Africa.
Entrenched dependence on fossil fuel generators carries huge financial, environmental and social cost.
Economic
Estimates of the levelised cost of electricity show that the average cost of generators ($0.20 - $0.60 / kWh) is usually higher than grid-based energy ($0.10-0.30 / kWh) and on par with solar+storage ($0.40-0.70 / kWh).
Generator customers spend on average $0.30/kWh on fuel alone. An estimated $28 billion to $50 billion is spent by generator users globally on fuel each year.
In regions where generators are a predominant source of energy access, population spend on fuel can be equivalent to or higher than the total population spend on the grid.
Operations and maintenance costs for generators could add an additional 10 percent to 20 percent to fuel service costs.
These expenses can drain region’s development potential and the growth of private enterprise and personal wealth.
Environmental
The fleets of generators across developing economies combined account for nearly 20 to 30 million sites with an installed capacity of 350 to 500 gigawatts (GW), equivalent to 700 to 1,000 large coal power stations. They are a significant factor in many countries missing their climate targets.
Each year, back-up generators emit more than one hundred megatons of CO2e into the atmosphere.
Without action, business-as-usual activity would generate 550 MtCO2e cumulative emissions. from 2021 to 2030.
Health and social
Generators are estimated to cause approximately 1,500 deaths per year in Nigeria from the inhalation of generator smoke and carbon monoxide; increasing the chances of lung cancer by 70 percent.
The negative impacts particularly affect children under the age of five, who are more susceptible to respiratory infections.
IFC estimates that generators account for 5% of NOx emissions across developing economies, rising to 15% in sub-Saharan Africa.
The close location of most generators to users houses and business not only increases the negative health consequences of pollution as well as results in excessively high levels of noise.
Large generators can emit as much as 100+ decibels, which is as loud as a bulldozer. Estimates suggest that in areas of concentrated use they can cause hearing impairment in 2 of 3 users.
It's estimated up to $50bn spent by generator users globally on fuel each year.
Without action, business-as-usual activity would generate 550 MtCO2e cumulative emissions. from 2021 to 2030.
Generators are estimated to cause approximately 1,500 deaths per year in Nigeria from the inhalation of generator smoke and carbon monoxide; increasing the chances of lung cancer by 70 percent.