The Impact of an Electrical Mini-grid on the Development of a Rural Community in Kenya

Electrical mini-grids can provide electrification to rural communities far from the national network. However the benefits of such schemes are disputed. We observed changes in two matched trading-centres in Makueni County, Kenya, neither of which were initially electrified. During the study a solar photovoltaic mini-grid scheme (13.5 kWp) was constructed in one of the trading-centres. After electrification there were relative increases in the number of businesses and business income. Comparing the households in the areas around the trading centres, perceived wealth increased more around the electrified trading centre. Qualitative interviews indicated improvements in service provision by the local school and health centre. The co-operative set up to run the mini-grid was free to set its own kWh tariff and chose to reduce it to a level that covers operating costs and would recover 70% of the initial investment interest-free. However, the tariff finally agreed is higher than the national grid tariff, which would be difficult to achieve if the mini-grid was not owned by and run for the benefit of the local community. Overall, we found that the mini-grid had a positive effect over background development, recovered some of its cost and charged a higher tariff than the national rate.

[1]  James Knuckles,et al.  Business models for mini-grid electricity in base of the pyramid markets , 2016 .

[2]  A. Bahaj,et al.  Social Structure, Reasonable Gain and Entrepreneurship in Africa , 2015 .

[3]  D. Kammen,et al.  Community-Based Electric Micro-Grids Can Contribute to Rural Development: Evidence from Kenya , 2009 .

[4]  T. Robinson,et al.  Sustainable Development Goals , 2016 .

[5]  Heather Adair-Rohani,et al.  Limited electricity access in health facilities of sub-Saharan Africa: a systematic review of data on electricity access, sources, and reliability , 2013, Global Health: Science and Practice.

[6]  T. Huld,et al.  Energy solutions in rural Africa: mapping electrification costs of distributed solar and diesel generation versus grid extension , 2011 .

[7]  Benjamin Sovacool,et al.  New partnerships and business models for facilitating energy access , 2012 .

[8]  Patrick Bayer,et al.  Does basic energy access generate socioeconomic benefits? A field experiment with off-grid solar power in India , 2017, Science Advances.

[9]  B. Tenenbaum,et al.  Regulatory Decisions for Small Power Producers Serving Retail Customers: Tariffs and Quality of Service , 2014 .

[10]  G. George,et al.  How does energy matter? Rural electrification, entrepreneurship, and community development in Kenya , 2019, Energy Policy.

[11]  Trust Chamukuwa Chimaliro.  Financial Statements for the year Ended 30 June ,2017 , 2018 .

[12]  Laura B. Rawlings,et al.  Impact Evaluation in Practice: Second Edition , 2010 .

[13]  Rubaba Ali,et al.  Who Benefits Most from Rural Electrification? Evidence in India , 2012 .

[14]  N. Madise,et al.  Perceptions of development by residents of a rural community in Kenya: a capability issue , 2014 .

[15]  Rosamaría Dasso,et al.  The effects of electrification on employment in rural Peru , 2013 .

[16]  Subhes C. Bhattacharyya,et al.  Mini-grid based off-grid electrification to enhance electricity access in developing countries: What policies may be required? , 2016 .

[17]  Kenya.,et al.  Kenya Demographic and Health Survey 2008-09 , 2004 .

[18]  Jörg Peters,et al.  Does Large Scale Infrastructure Investment Alleviate Poverty? Impacts of Rwanda's Electricity Access Roll-Out Program , 2015 .

[19]  S. Bhattacharyya,et al.  Mini-grids for rural electrification of developing countries , 2014 .

[20]  A. Bahaj,et al.  Infrastructural challenges to better health in maternity facilities in rural Kenya: community and healthworker perceptions , 2015, Reproductive Health.