In spite of the intention of governments to increase the use of renewable energy in electricity supply, particularly the use of solar photovoltaic (PV) for energy poverty reduction in rural and peri-urban areas of Africa, there is relatively little information on how solar PV electrification impacts on energy poverty reduction. Therefore, there is a gap in the literature and hence the need for continuous research. Using Ghana as a reference country, the historical trend, donor cooperation and other aspects of solar PV rural electrification are discussed. The paper illustrates the intersectoral linkages of solar PV electrification and indicators on education, health, information acquisition, agriculture and micro-enterprises. It also reviews sustainability related issues including costs and market barriers, subsidies, stakeholders involvement, political and policy implications, which are critical factors for sustainable market development of solar PV and other renewables. Finally, a common framework is developed to provide a basic understanding of how solar PV electrification impacts on energy-poverty. This framework provides

Dancing to the Tune of

Acknowledgement This work was conducted within the framework of a project financed by GTZ on behalf of the Government of the Federal Republic of Germany. Authors ’ address

1 The contributions by Verena Christmann, Ariane Grubauer, Christian Sebaly and other members of the ZEF Project Group “Governance of Diversity ” are gratefully acknowledged. 4 Contents

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The relationship between solar photovoltaic (PV) rural electrification and energy poverty was assessed using social, economic and environmental indicator-based questionnaires in 96 solar-electrified and 113 nonelectrified households in rural Ghana. The purpose was to assess energy-poverty status of households with and without solar PV systems, and to determine the factors that explain energy-poverty in off-grid rural households. Principal component analysis (PCA) was used to construct energy-poverty index scores (EPIS). On the basis of the results of the EPIS, about 80 % of the non-electrified households were assessed as relatively energy poor compared with only 10 % of the solar-electrified households. Three significant indicators increased linearly with increasing EPIS and therefore explained the variation in EPIS. They are monthly savings on lighting (r 2 =0.214), number of children who can sit around lighting (r 2 =0.388) and amount paid to obtain lighting/electricity system (r 2 =0.261). On the contrary, EPIS decreased linearly with increasing monthly costs of kerosene, candles and dry-cell batteries. This indicates that increasing expenditure on kerosene, candles and dry-cell batteries is likely to affect household

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