Economic Development & Poverty Reduction

Kerosene and other non-electric sources of light used in the developing countries are expensive and inefficient. A poor rural family in the developing world, pays the equivalent (over USD $100 per year in many cases) of what a family from the North pays for lighting services in order to receive only 0.2% of the light. LUTW is providing its systems at social price negotiated with the component suppliers. The long life of WLEDs and low power requirements results in extremely low ongoing maintenance costs. Cumulative savings from kerosene replacement significantly bolsters disposable incomes. Lighting also facilitates the establishment of indoor and evening cottage industry helping people earn a modest living.

By promoting the use of renewable energy LUTW is helping to divert national funds away from the consumption of fossil fuels. On a larger scale the global household-sector use of fuel-based lighting is responsible for annual energy consumption of 96 billion liters of kerosene. This equates to 1.7 million barrels of oil per day, comparable to the total production of Algeria, Brazil, Indonesia, or Libya (1). Energy costs divert money away from food, health services, housing and other basic needs in poor countries. Moreover, for a country like Nepal that spends one third of its GDP on imported kerosene and distribution subsidies, fluctuations in world energy markets affects the countries holding of valuable foreign currency. The opportunity in economic terms of moving away from a fossil fuel imports is enormous and frees up foreign exchange for national programs.

(1) “The Specter of Fuel-Based Lighting”. An Issue Paper from Lawrence Berkeley National Laboratory.