The cost of reliability in decentralized solar power systems in sub-Saharan Africa

Although there is consensus that both grid extensions and decentralized projects are necessary to approach universal electricity access, existing electrification planning models that assess the costs of decentralized solar energy systems do not include metrics of reliability or quantify the impact of reliability on costs. We focus on stand-alone household solar systems with battery storage in sub-Saharan Africa using the fraction of demand served to measure reliability, and develop a multistep optimization to compute efficiently the least-cost system with the fraction of demand served as a design constraint, and take into account the daily variation in solar resources and costs of solar and storage. We show that the cost of energy is minimized at approximately a 90% fraction of demand served, that current costs increase, on average, by US$0.11 kWh–1 for each additional ‘9’ of reliability, and that this reliability premium could be as low as US$0.03 kWh–1 in a plausible future price scenario.