Off-Grid energy use and household welfare in Rwanda

Abstract

One of the biggest issues to rural growth of the economy in developing countries is insufficiency entrance to renewable energy. Energy access can improve educational and health outcomes, labor productivity, job creation, and economic growth, as well as allow for more effective use of information and communication technology. Rwanda's government intends to achieve middleincome status by 2030. To that end, the government has implemented a nationwide electrification program, which has increased electrification rates from 6% in 2008 to 50% in 2019. The study identifies the main driving forces behind Rwandan households' decision to use off-grid energy. The results indicate that the location of residence, home ownership, household size, type of marriage, household income level, and homeowner all play a crucial role in clarifying the likeliness of off-grid energy use within the household. Further the results show that electricity is more likely to be used in urban households, where household with high income more often use electricity compared to others. The study also demonstrates the significant impact of utilizing stand-alone systems energy as a means of electrification on household welfare in Rwanda.