Exploring neighborhood power production technologies and business models for developing economies

Abstract

A Neighborhood Power Producer business solution, which aggregates customers and therefore employs economies of scale, is one solution to the energy access issue of most developing economies. In this approach, entrepreneurs contract with a group of colocated residents or businesses to provide modem energy services. This service can be grid-tied or off-grid, serving as either backup power to the central electricity grid or as primary power, depending on access to the electric grid and/or the quality and availability of power. These systems are essentially micro-grids with distributed generation. These developing world Neighborhood Power Producers will also benefit from the rising demand for a more distributed electric grid as a solution to the threat of adverse weather like hurricanes and super storms in developed economies. Cyber security threats are also leading to increased research into distributed power generation systems. This provides technological advances that are powered by investments in developed markets. The developing economies can essentially leapfrog their more developed counterparts with regards to grid-resiliency. The goal of this thesis is to examine broad trends in the Neighborhood Power Producer business model and what strategies are necessary for business sustainability in the short, mid, and longer term.