Socio-economic impacts of rural electrification in Tanzania

Recently, penetration rates of solar PV-systems increased drastically in rural Sub-Saharan Africa, and there will be less areas without electricity access altogether. Simultaneously, mini-grid systems are expected to be key in rural electrification because they allow for higher loads. Eventually, interconnection of national grids with mini-grid systems will gain importance. This case study compares impacts of electrification on households connected to an interconnected 4 MW mini-grid system with effects on households connected to off-grid energy systems in rural Tanzania. Relying on Propensity Score Matching, the analysis detects minor differences regarding usage of electrical equipment and expenditures for energy sources between the comparison groups. As has been expected, it concludes that grid-electrified households have significantly higher mean lumen and lighting hours. However, the case study shows that off-grid technologies, including solar PV-systems, are important sources to bridge and narrow the electricity gap and can already meet a critical level of rural electricity demand of households. Pre-grid-electrified statuses and their socio-economic impacts need to be reflected in research as they build the foundation for further electrification measures. © 2019, Aalborg University press. All rights reserved.