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Household Effects of Electrification Through Mini-Grids: Evidence from Tanzania

Author

Listed:
  • Federico M. Accursi
  • Raul Bajo-Buenestado

Abstract

Mini-grids are emerging as a key solution to electrify access-deficit communities, yet their effectiveness in improving energy access and household welfare remains underexplored. This paper provides novel evidence from Tanzania, where a policy reform doubled the number of mini-grids since 2008. Exploiting spatial and temporal variation created by the distance to the households in proximity to mini-grids and the timing of their deployment, and using data from two different nationally representative surveys, we find that mini-grids increase local electrification rates by 10-23 percentage points — a result corroborated by a surge in nighttime light intensity near newly deployed projects. We also show that mini-grids reduce reliance on polluting fuel-based lighting and drive the uptake of electric-powered devices. Back-of-the-envelope calculations suggest the surplus generated by renewable-based mini-grids nearly offsets their costs.

Suggested Citation

  • Federico M. Accursi & Raul Bajo-Buenestado, 2026. "Household Effects of Electrification Through Mini-Grids: Evidence from Tanzania," CESifo Working Paper Series 12453, CESifo.
    • Handle: RePEc:ces:ceswps:_12453
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    Keywords

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    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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