Sustainability of Community-Owned Mini-Grids: Evidence From India

Abstract

Background: To ensure universal access to electricity, community-owned mini-grid systems are gaining popularity, particularly for remote locations in developing countries where central grid extension is technically and economically challenging. However, our understanding of the conditions ensuring the long-term sustainability of these solutions and their ability to produce socio-economic benefits is still limited. To reveal these issues, we study 24 community-owned Solar Mini-Grids (SMGs) using a multi-dimensional and multi-tier framework. These implementations are developed by a single social enterprise and span a few months to over five years of operation. Results: We find that the underlying model analysed is capable of providing a consistently high quality, durable, reliable and affordable power supply. Strong community engagement from early stages helps to create effective and inclusive governance, motivating users to make regular payments, thus ensuring economic model sustenance and overall satisfaction of the users. These factors contribute to social and environmental benefits, particularly in terms of increased safety, a strong sense of community connectedness, child education, and improved air quality. However, energy consumption and engagement in productive activities remains marginal. Conclusions: The multi-dimensional analysis revealed that community-owned energy interventions can be developed sustainably, provided quality of power supply is good and there is a deep engagement with local communities. However, dedicated interventions are needed for communities to benefit from energy access beyond the purpose of illumination. Particularly, those at the nexus of energy and rural development, for example agriculture, water and sanitation, can help in creating environments suitable for sustainable rural living.

Keywords: Solar Mini-Grid, Sustainability, India, Demand Growth, Productive Use, Impact Evaluation, Multi-Criteria, Community Energy, Local Governance