Abstract
The development of resilient energy systems is important for sustainable cities and communities. However, in countries with insufficient national energy supply, electricity distributors rarely consider remote communities due to their distant settlement, low electricity demand and poor payment capabilities. The United Nations has set a goal to deliver universal energy access by 2030; hence, it has become imperative to deploy clean and affordable off-grid mini-grid solutions to previously abandoned communities. Access to energy in rural communities is expected to result in unlocking their economic potentials. This paper investigates the impact of a solar hybrid mini-grid on the socio-economic growth of local entrepreneurs in Gbamu Gbamu village, Nigeria. A total of 83 micro- and small-enterprises has been surveyed; descriptive statistics, paired-sample t-test, cross-tabulation and χ2 test, were used to assess the performance of businesses before and after electrification. The outcomes include the number of business enterprises created, employment statistics, energy expenses and income generated. Regression analysis was conducted on the relationship between the average income generated by businesses and independent socio-economic variables such as gender, marital status, household size, age, education level, years of business establishment, hours of operation, building tenure, capital source, number of employees, generator ownership and the days of operation.This article is part of the theme issue 'Developing resilient energy systems'.
Highlights
This paper investigates the impact of a solar hybrid mini-grid on the socio-economic growth of local entrepreneurs in Gbamu Gbamu village, Nigeria
In 2015, the Nigerian Energy Support Programme supported by the German government in partnership with the Nigerian Federal Ministry of Power carefully identified some remote villages for the implementation of up to 10 Rural Electrification Pilot Projects (RrE-PP)
Access to energy in rural communities has been recognized as a key contributor to socioeconomic development
Summary
The challenge of climate change and its direct effect, global warming, has received much attention. According to a report from the Small and Medium Enterprise Development Agency of Nigeria [10], a total of 36 million Nigerian MSEs contributed about 48.47% of the country’s National Gross Domestic Product in 2013. This directly implies that the growth of MSEs could be an indicator of the overall performance of an economy. What are the impacts of access to electricity on rural MSEs in Nigeria, as measured by the number of new business enterprises, number of employees, petrol or diesel generator usage, the amount spent on energy before and after mini-grid connection, and income generated before and after mini-grid connection? The key questions posed and answered in this study include: 1. What are the impacts of access to electricity on rural MSEs in Nigeria, as measured by the number of new business enterprises, number of employees, petrol or diesel generator usage, the amount spent on energy before and after mini-grid connection, and income generated before and after mini-grid connection?
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