| dc.description.abstract | Socio-economic benefits are gaining prominence as a key driver for renewable energy
deployment in Sub-Saharan Africa. However, analytical work and empirical evidence on
these topics remains relatively limited. In an effort to contribute to this field of knowledge,
this thesis conducts a comprehensive ripple effects analysis of the socio-economic impacts
that stem from renewable energy deployment in the region. By conducting a case study of
the ASYV solar power plant in Rwanda, developed and operated by the Norwegian company
Scatec Solar, we identify local socio-economic ripple effects arising from Scatec Solar’s
procurement spending in Rwanda and the corresponding increased access to clean and
reliable electricity for local households and businesses, and assess the value of these effects.
We find that a relatively low share of Scatec Solar’s total value creation can be attributed to
local suppliers in Rwanda. High dependency on imported products and foreign know-how in
all segments of the project’s value chain explains this finding. The ripple effects are,
however, more substantial in terms of the creation of employment throughout the local value
chain. Parallel to the expansion in electricity access, it will be crucial for the Rwandan
Government to adapt the right policies in order to capture more of the value generated by
foreign direct investments at the local level. Future efforts must be concentrated in sustaining
technology transfers into the local economy, strengthening capabilities and promoting
innovation in local economic sectors. Cross-cutting measures across all segments of the
value chain will provide higher potential for local value creation.
In terms of ripple effects arising from electricity access, we also find that these effects
remain modest in the short to medium-term, which contrasts the general belief that electricity
is a key driver for socio-economic growth in developing countries. A number of country and
region specific factors, like limited market exchange and high electricity tariffs, might
explain this contradiction. Our findings suggest that electricity is not a criterion for
development, but a facilitator, that in combination with possibilities for market exchange and
a competitive electricity tariff can give rise to sustained growth in the long-term. | nb_NO |
