Village development framework through self-help-group entrepreneurship, microcredit, and anchor customers in solar microgrids for cooperative sustainable rural societies

Abstract In these times of distress, self-reliant villages and sustainable development are more crucial than ever. Support is much needed to uplift durably impoverished communities. Rural electrification has been recognized as playing a key role in helping poverty-stricken rural regions to develop sustainable livelihoods. Yet, despite several plans initiated by governments, rural electrification alone has fallen short in providing sustainable solutions for the development of rural areas. In this paper, a multidisciplinary approach is prescribed. A framework to achieve sustainable development is presented where microfinancing, social cooperation, and Self-Help-Groups, stimulate entrepreneurship, and where cost effective solar + battery electricity solutions support local initiatives. Microgrid simulations based on field data show in what proportion autonomous microgrids are more cost effective when rural businesses, workshops, schools, or GSM towers, (i.e. anchor customers) complement households’ loads. Experience shows that this is also a critical factor of sustainability. Therefore, rural development and electrification campaigns would benefit from the cooperative association among anchor customers, Self-Help-Groups, and microfinancing. These findings can support policy makers, government, and regulators for the development of successful rural electrification campaigns.