How a solar mini-grid company providing microfinance services could be a sustainable solution for rural electrification in Tanzania? – Case study analysis of Power Corner

Details

Supervisors

Peirce, Robert ; Lejeune, Christophe

Faculty

Louvain School of Management

Degree label

Master [120] en Ingénieur de gestion

Abstract

In Tanzania, there is currently only 16% of the population having access to energy. With a population of more than 51 million people which principally live in remote areas, the potential for rural electrification projects is huge. Thanks to the large potential for solar energy production on this part of the globe, decentralized mini-grids start to spread across the country. The purpose of the thesis was to find out how Power Corner, a smart solar mini-grid company financed and co-developed with Engie and Tractebel in Tanzania, could be a sustainable solution for rural electrification in Tanzania. After defining the different concepts and frameworks applying for mini-grid companies in Tanzania and presented a literature review on similar cases, I analyzed Power Corner Tanzania activities in the scope of an integrated framework for rural electrification based mainly on secondary document analysis and interviews with key stakeholders of the company. Then, based on a selection of 30 key characteristics of the company, I conducted a pre-assessment of Power Corner Tanzania sustainability regarding the financial, social and environmental dimensions of the Triple Bottom Line sustainability approach. The results of this indicative assessment showed that Power Corner Tanzania could be a sustainable solution for rural electrification in Tanzania. At least, there has been few evidence in the research that would prove that the company would not be viable in terms of financial, social and environmental sustainability. However, due to the complex interdependence of the company with many of its stakeholders, PCT is suggested to create and closely follow up key performance indicators of its financial sustainability and customer satisfaction level and already to start developing projects in order to anticipate potential market changes.