Assessing the feasibility of a solar microgrid social enterprise in sub-Saharan Africa

Delivering Sustainable Development Goal 7 by providing secure, affordable and reliable access to modern electricity for over 700 million people globally demands innovation in technology, policy and delivery models. Solar PV microgrids, defined as energy generation and supply systems having capabilities of managing local energy supply, are proving a viable solution for remote rural areas in Sub-Saharan Africa with no prospect of main grid connection. While steady technological progress in the microgrid sector is being observed, effective planning methodologies and delivery models are key to sustainable microgrid implementation. Social enterprise is a collective term for a range of organisations that trade for a social purpose, and offer a niche innovative energy access delivery model that is neither public nor private sector, achieving primary social goals through active marketplace trade. This thesis proposes an evidence-based analysis methodology for assessing the feasibility of deploying and operating solar microgrids as a social enterprise in a low-income developing country through assessing financial sustainability and social impact. The former is assessed through conducting a site-specific feasibility study; assessing the market potential over a given region; and business scale-up scenario modelling, while the latter is assessed through a novel key performance indicator framework. The methodology is tested on a use case in Malawi, where pilot microgrids provide primary data to inform SMSE feasibility. Results indicate a SMSE operating a 10 site portfolio offer a positive IRR and investment opportunity, with interventions on reduced CAPEX and OPEX and 50% grant contributions. Positive social impact is experienced by the community served by the microgrid in economic development, health, and education. The methodology is validated through the use case testing with recommendations provided for improved functionality. Further recommendations are given for interventions in the Malawian energy eco-system to remove barriers for improved SMSE feasibility, directed at policy makers, microgrid developers and research agendas.Delivering Sustainable Development Goal 7 by providing secure, affordable and reliable access to modern electricity for over 700 million people globally demands innovation in technology, policy and delivery models. Solar PV microgrids, defined as energy generation and supply systems having capabilities of managing local energy supply, are proving a viable solution for remote rural areas in Sub-Saharan Africa with no prospect of main grid connection. While steady technological progress in the microgrid sector is being observed, effective planning methodologies and delivery models are key to sustainable microgrid implementation. Social enterprise is a collective term for a range of organisations that trade for a social purpose, and offer a niche innovative energy access delivery model that is neither public nor private sector, achieving primary social goals through active marketplace trade. This thesis proposes an evidence-based analysis methodology for assessing the feasibility of deploying and operating solar microgrids as a social enterprise in a low-income developing country through assessing financial sustainability and social impact. The former is assessed through conducting a site-specific feasibility study; assessing the market potential over a given region; and business scale-up scenario modelling, while the latter is assessed through a novel key performance indicator framework. The methodology is tested on a use case in Malawi, where pilot microgrids provide primary data to inform SMSE feasibility. Results indicate a SMSE operating a 10 site portfolio offer a positive IRR and investment opportunity, with interventions on reduced CAPEX and OPEX and 50% grant contributions. Positive social impact is experienced by the community served by the microgrid in economic development, health, and education. The methodology is validated through the use case testing with recommendations provided for improved functionality. Further recommendations are given for interventions in the Malawian energy eco-system to remove barriers for improved SMSE feasibility, directed at policy makers, microgrid developers and research agendas