Person:

Yeh, Bee Hui

The energy poverty challenge sits in an estimated $6.4 trillion clean technology market opportunity in developing and emerging markets over the next decade (World Bank, 2014). As a result, private sector investments have magnetized towards renewable energy technology solutions that while innovative, are limited in scalability. However, large-scale electrification has seen narrow success, often only using income levels as a proxy for development – a myopic measure for Quality of Life (QOL) in rural areas with drastically different livelihoods than their urban counterparts.

Thus, my critical research objective was to determine which Rural Energy Development Solution(s) (REDS) best catalyze QOL improvements in rural communities to increase return from international development dollars and private sector investment. My primary hypothesis was that small-scale solar REDS (i.e., solar lamps and Solar Home Systems (SHS)) have the highest degree of correlation with QOL indicators, suggesting a sustainable and significant development opportunity for rural communities in Malaysia. However, the model showed the impossibility of predicting REDS fit without taking both a holistic and customized assessment of each village’s situation. In Kampung Dew, an islanded microgrid has the most promise, largely given the anticipated growth in energy need from the village’s budding ecotourism business and accountable management entity expected from the stable local government. In contrast, a SHS is an optimal match for Kenyah due to its community-oriented longhouse living arrangements; ongoing displacement as a result of hydrodam construction make the ability to pump water to irrigate its farmlands even more important.

Methodology for this research centered on determining Clean Tech Rural Development Model (CTRDM) variables to build a robust and applicable cost-benefit model. First, by assessing environmental, economic, and social implications, I identified the pertinent costs and benefits of a representative range of three REDS from the smallest to largest application (i.e. solar lamp, small-scale solar home systems (SHS), and mid-scale microgrid electrification). This investigation uncovered a net positive impact from each REDS after accounting for up-front capital, implementation, and maintenance costs. Both per household and government perspectives were crafted to provide a balanced viewpoint of each REDS.

Second, I identified relevant QOL inputs and created assessment mechanisms for each of these variables, quantitative where possible, and qualitative where not. This composite of inputs provides a comprehensive assessment of Environmental, Economic, Social, and Governance factors (e.g. number of households, proximity to grid, access to biofuel) that tailor REDS selection to a specific rural locale.

Lastly, customizing this model for two villages in Peninsular and Sarawak Malaysia determined which solutions yielded the highest impact on QOL indicators relevant to rural development, i.e. income level, health, education, and gender inequity.

CTRDM can thus serve as a decision tool that forecasts the extent to which REDS impact QOL indicators for a specific region and guides government policies and private investment in REDS implementation. While rural villages in Peninsular and Sarawak, Malaysia were used as test cases for the CTRDM, the customizable inputs make the model applicable to a wide range of countries considering rural development through clean technology solutions. As REDS advance, further studies, using the replicable methodology, can be conducted to build out the cost-benefit model.