Socio-economic impacts of energy access through off-grid systems in rural communities: a case study of southwest Nigeria

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'.