Community-Based Electric Micro-Grids Can Contribute to Rural Development: Evidence from Kenya

Abstract

In this paper we clarify the mechanisms through which rural electrification can contribute to rural development. Through a detailed case study analysis of a community-based electric microgrid in rural Kenya, we demonstrate that access to electricity enables the use of electric equipment and tools by small and micro enterprises, resulting in significant improvement in productivity per worker (100-200% depending on the task at hand) and in a corresponding growth in income levels in the order of 20-70%, depending on the product made.Access to electricity simultaneously enables and improves the delivery of social and business services from a wide range of village-level infrastructure (e.g., schools, markets, and water pumps) while improving the productivity of agricultural activities. We find that increased productivity and growth in revenues within the context of better delivery of social and business support services contribute to achieving higher social and economic benefits for rural communities. We also demonstrate that when local electricity users have an ability to charge and enforce cost-reflective tariffs and when electricity consumption is closely linked to productive uses that generate incomes, cost recovery is feasible.

The Natural and Infrastructural Capital Elements of Potential Post-Electrification Wealth Creation in Kenya

“…Traditional approaches to off-grid electricity demand estimation, as well as those that evaluate users' ability and willingness to pay for electricity services, have traditionally used social science methods such as surveys [1] [6], field and longitudinal studies [7][8], and stated preferences (contingent valuation, ability and willingness to pay) [9] [10]. These approaches are extremely valuable as they usually provide detailed knowledge about a consumer and the intricacies of daily life in a region, village, or town.…”

Are the Rural Electrification Efforts in the Ecuadorian Amazon Sustainable?

“…Although RE may help to increase the reliability of supply (due to the diversification of energy matrix; [23,39,41]), reliability in rural areas demands for local access to spare parts, which entails the know-how to exert maintenance [42]. Moreover, as a higher access to energy is usually correlated with higher income [38], these solutions are expected to contribute to the income-generating opportunities for inhabitants of remote areas [43][44][45]. In this case, electrification programs need to be coupled with complementary infrastructure, including training and education [46].…”

Presenting Triple-Wins? Assessing Projects That Deliver Adaptation, Mitigation and Development Co-benefits in Rural Sub-Saharan Africa

“…Women and children bear the heaviest burden of biomass use as they often have to travel long distances to collect wood (Calvo 1994) and are disproportionately exposed to combustion pollutants (Bailis et al 2005). For this reason, rural electrification has the potential to meet gender-equality goals and other development goals through improved access to social and business services, including schools, markets, water pumps and technology for increased agricultural productivity (Kirubi et al 2009). Where opportunities for livelihood diversification and improved agricultural productivity exist, adaptation goals can also be met.…”