5.2.2. Energy Affordability Benchmarking

A detailed energy-affordability benchmarking on a national or regional level for rural SSA is essential to include in future MG scale-up strategies and can be based on data for national disposable rural household income, which however might vary between different locations. Based on the community survey data presented in this study and regional benchmarking data [87], it can be assumed that the total disposable income for non-housing costs ranges from 1 to 2 \$ per day in rural Eastern Africa. In rural Zambia, it is significantly lower. Table 8 provides a scenario for affordable energy tariffs at the Sinda and Mpanta sites based on the current number of connected customers, MG energy output and local household income and spending levels. The calculation which has been made in local currency illustrates the significant gap between affordable and cost-reflective tariffs at both sites. It also indicates that a desired further increase in consumption, for example through the productive use, would require a further tariff reduction or careful calculation of added value and income generation through these activities as an automatic increase in household income through energy access cannot automatically be assumed at all locations as the survey data indicates. The affordability context in this scenario however is purely based on a financial calculation and does not include the dimension of energy justice. If we transfer this scenario to an average UK household connected to Sinda mini-grid, this calculation would reveal an energy tariff of around 9£ per kWh which would be hard to communicate to a UK customer. These scenarios also emphasise that energy affordability does not automatically contribute to energy justice.

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**Table 8.** MG energy-tariff affordability estimation for Mpanta and Sinda MG sites and comparison to UK household scenario based on household income and spending levels.

 Percentage based on regional income-benchmarking studies [87]. \*\* Assuming equal consumption across consumers.
