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WP02-26

Household effects of electrification through mini-grids: Evidence from Tanzania

Resumen

Mini-grids are emerging as a key solution to electrify access-deficit communities, yet their effective ness 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 rep resentative 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 up take of electric-powered devices. Back-of-the-envelope calculations suggest the surplus generated by renewable-based mini-grids nearly offsets their costs.

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Autores: Federico M.Accursi, Raúl Bajo-Buenestado.