Are cooling systems in the off-grid world, underrated?
We need off-grid innovation to support the growing need for cooling systems in the most underserved regions on the planet.
The development of cooling systems is linked to nine sustainable development goals defined by the United Nations. Yet, just 0.4 per cent of total overseas development assistance is directed towards improving cooling systems in the hottest and most impoverished regions of the planet.
Introduction
For those who live on off-grid setups and don't have access to reliable electricity or even basic services, inexpensive and effective cooling solutions are a rare commodity. A recent SEforAll report concluded that 318 million people living in poor, rural settings are at risk due to a lack of access to cooling systems. Being at risk due to a lack of cooling systems translates into the inaccessibility of three primary requirements - comfort, safety, and agricultural productivity. In addition to the lack of access, unorganized off-grid expansion primarily led by the private sectors has created irregular quality standards for the use of cooling devices in an off-grid setup.
Why cooling?
Increasing effects of climate change expose over 30 per cent of the global population to 20 days of life-threatening temperatures every year. Deplorable climate change adaptation and slow rates of urbanization have put millions of people at risk. A direct impact of poor adaptation to increasing temperatures has proven to have a paramount effect on the lives of humans. In 2015, India and Pakistan witnessed over 4,500 deaths due to extreme heat waves alone. As temperatures continue to rise globally, the World Health Organization predicted a death toll of over 92,000 by 2030 if developing nations of Asia and Africa are unable to integrate efficient cooling mechanisms for their ever-growing population.
In addition to being a threat to life, poor cooling systems in developing nations have regularly de-accelerated the upliftment of livelihoods. Over two-thirds of global food wastage occurs in Africa and Asia, regions where integration of cooling systems is almost non-existent. India, the world's largest pharmaceutical manufacturer, often discards 20 per cent of their manufactured vaccines and medicines due to the existence of a subpar cold storage supply chain.
A rising global population has accounted for improved demand for better cooling infrastructure. While this would push nations towards infrastructural development, it would also give rise to increased demand for electricity.
Off-grid energy for cooling?
Cooling systems and reliable electricity supply are near-perfect metaphors. Over two billion people on our planet currently live without access to reliable electricity. More recently, off-grid technology has made it possible for communities to utilize life-essential technology for the first time. The International Energy Agency reports that almost 70 per cent of disconnected communities will be engaged in power consumption using off-grid technology.
Dissemination of clean energy products and improved awareness of off-grid energy in rural areas involves customer interaction with families in socially excluded regions. More often than not, this has helped create a sense of trust and security amongst rural communities that are unable to exploit advancements in science. Recent data has suggested that communities harnessing off-grid energy are now more open to experimenting with economically feasible essential goods to improve livelihoods. Hence, modern technology supported by off-grid energy services is now more marketable. This has pushed manufacturers towards creating off-grid energy-friendly life-essential products for better impact.
Cooling technologies have been habitually discarded as an overpriced application of technology that economically harms more than it socially supports. For most rural communities in Africa and Asia, bread earners cannot afford to spend more than a dollar a day on the livelihood of individual family members. Cooling systems were an unaffordable luxury until the global rise of off-grid energy technology.
Since 2015, the number of rural households using fans, coolers, and mini-refrigerators has slowly risen. Most ground-level surveys have regularly begun to cite fans as an essential Tier 1 technology, that is, the first or second electric device integrated after power is supplied to a household. Communities are beginning to realize the social and productive advantages of existing in a cooler environment. Promoting access to quality cooling devices increases consumer confidence, leading to increased and accelerated sales, enhanced affordability, and expanded reach.
It is now essential for global decision-making institutions to focus finance and research towards integrating Tier 2 and Tier 3 cooling technology such as air conditioners and post-harvest refrigerators. Historically, small-scale refrigerators have had a high perceived consumption value, but innovation has allowed efficiency to increase by almost 36 per cent. Regardless, refrigerators have become one of the most challenging devices for off-grid setups due to their initial capital expenditure. Similarly, small air conditioners are economically more viable technology but consume high volumes of electricity during operation. To diminish the excessive capital burden of potential cooling appliance customers, the market began ramping up advertising and sales of small air coolers in areas with a low per capita income. Yet, poor marketing strategies and declining customer belief have not allowed air coolers to make a substantial impact.
Supporting cooling systems using off-grid energy in households with varying economic backgrounds remains to be an unsolved challenge. The solution to this must be two-pronged, first, ensuring stable and reliable off-grid power for all. Second, innovate economically sustainable high impact technology with lower capital and operational cost.
Here is how it has been done
Innovation in the off-grid space for any application is often tailored to the specific needs of the project. While it's arduous for us to identify streamlined pathways to integrate cooling technology into off-grid energy networks, we highlight two significantly impactful stories that have led to large-scale community impact using decentralized cooling systems.
Cooling as a Service for underserved agricultural economics. ColdHubs Ltd. was founded in 2015, pioneering its bespoke pay-as-you-go cooling as a service (CaaS) model for smallholder farmers, retailers, and wholesalers of horticultural produce. The project eliminates food spoilage due to the lack of cold storage at key points within the food supply chain by deploying and operating robust off-the-grid cold storage.
The organization designs, installs, commissions, and operates 100 per cent solar-powered walk-in cold rooms, branded as “ColdHubs”, in farm clusters, produce aggregation centres, and outdoor markets. The Hubs store and preserve fresh fruits, vegetables, and other perishable foods 24/7, extending their shelf life from two days to more than 21 days.
ColdHubs operates a simple pay-as-you-store model. Farmers and retailers pay 100 Nigerian Naira (the equivalent of US$ 0.50) to store one 20kg (44 lbs) returnable plastic crate per day inside the cold room. Hubs are operated by a female hub operator tasked with monitoring the loading and unloading of crates, fee collection, and a market attendant who builds relationships in farm clusters and markets. The organization owns all the equipment with the assets on their balance sheet, removing this barrier for small-scale operators unable to fund capital expenses for cold storage systems.
Each ColdHub is made up of a cold room having dimensions of 10ft x 7ft x 7ft; this contains approximately three tons of perishable food arranged in 150 units in 20 kg (44 lbs) plastic crates stacked on the floor. An energy-efficient natural refrigerant-charged R290 monoblock refrigeration unit with 24/7 autonomous refrigeration, consuming 658 W of energy per hour is used to cool the interior. Temperatures are kept around 4 degC. The energy used to operate the device is provided by rooftop solar panels, connected to a set of deep-cycle, long-lasting batteries, off-grid, and inverters.
ColdHubs currently serves 3,517 farmers, retailers, and wholesalers using its 24 installed cold rooms in 18 farms, aggregation centres, and markets within the Southern and Northern Regions of Nigeria.
Let's look at the existing impact in numbers:
Improved household income of 3,517 small farmers, retailers, and wholesalers by 50 per cent
Quality enhancement of 20,400 tons of fresh fruits and vegetables
Saved an estimated 462,528kg of CO2 emissions while reducing annual energy consumption by 547 kWh.
Sustainable fans for increased comfort. In 2016, CLASP (Collaborative Labeling and Appliance Standards Program) and its implementation partners utilized the result-based financing (RBF) mechanism in Bangladesh through the Efficiency for Access Coalition (EforA) to catalyze the uptake of high-quality, super-efficient off-grid fans. Bangladesh is an ideal market for super-efficient off-grid fans. The nation’s harsh tropical climate heavily influences its culture, economy, and demand for affordable and sustainable cooling solutions. The RBF mechanism was implemented in Bangladesh from 2017 to 2019. Two distributors participated in the program - Super Star Group (SSG) and Rahimafrooz Renewable Energy Ltd.
Between 2016 and 2018, the average price of fans dropped by 47 per cent. While DC fans were still, on average, more expensive than AC fans due to the higher cost of BLDC motors, sustained growth in the off-grid fan market improved cost reductions for BLDC motors through the support of the RBF scheme.
Another factor that was crucial to the growth of off-grid fans is the high consumer awareness in the target geographies. In Bangladesh, surveyed shop owners indicated that the main drivers of off-grid fan sales were from on- and weak-grid consumers who perceive DC fans as more energy efficient. Shop owners also reported that consumers who looked for solar fans were grid-connected customers seeking cooling solutions that did not depend on grid electricity. Hot climate, perceived energy savings, and capability to mitigate grid reliability challenges – contribute to making South Asia the largest off-grid fan market in the world.
Consumer impact: Through on-ground surveys conducted with 1600 interviewees, CLASP was able to identify the benefits of cooling fans:
Fans increase productivity and comfort by allowing people to work longer hours and move work indoors when necessary.
In Bangladesh, women often cook, process food, and take care of children in traditional mud houses that are too hot for indoor activities. 65 per cent of survey respondents in Bangladesh stated that using a fan allows their family to shift activities like food processing, indoors. The ability to work inside contributes to overall comfort and safety, and productivity. These productivity gains help women save time from household chores and pursue higher-value paid work and education, contributing to women’s empowerment.
By reducing humidity and increasing airflow, fans can help reduce the health risks associated with indoor air pollution.
Conclusion
Global off-grid energy has been cited for playing a major role in diminishing energy poverty. Marginalized communities gaining access to power are being given an opportunity to revolutionize their living standards. That said, a large portion of economically disabled regions are present in areas that climatologically experience the highest annual temperatures in a year. These are the same regions where the idea of off-grid energy has flourished and has given millions a new lease of life. Innovators and planners need to focus on integrating innovative cooling technology supply chains in areas with off-grid power supply.
The requirement for better and cheaper cooling technology is at an all-time high. Coupling growing energy access with product innovation will help communities translate energized opportunities into high impact results for themselves.