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The (Economics of the) Generator

Herat: the economics of the generator

Roadside bottle-on-a-barrel fuel for the generator can be cheaper than a more formal petrol station, but does carry the risk of dirtying and shortening the life of the generator. Consumers are well-aware of the risks and where they buy their fuel and provides a glimpse of the short-term versus long-term strategic thinking.

In many communities an entrepreneur will run a larger generator and run a power line to any house that pays per day’s access. Globally there’s a lot of activity in this space with technology providing opportunities for new business models such as pay-as-you-go. Check out Simpa Networks and this article on charging the uncharged.