Abstract
Mini grids are increasingly filling the supply gap between government supplied electricity and the requirements of households and enterprises. We present a descriptive analysis of enterprise development within a large mini grid based rural electrification initiative launched in India in 2015. Using data from two surveys conducted with 229 enterprise operators, we explore the change in aspirations among enterprise owners and the impacts of longer duration of reliable electricity on key business outcomes. We find that improved quality of electricity from mini grids leads to a shift towards using mini grids as the primary source of electricity; transition from lighting to productive uses of electricity; and increased aspirational demand for electricity among enterprise operators. Further, we find a positive relationship between increased hours of reliable electricity supply and extended hours of operation and customer footfall, but not with revenue generation. Our findings suggest that mini grids offer an important opportunity for enhancing local aspirations for business development and should be an integral part of policies focused on rural enterprise development.
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