Integrating user experiences into mini-grid business model design in rural Tanzania

Abstract Renewable energy mini-grids can have significant impacts on livelihoods and improved business performance and productivity in rural parts of Africa, particularly where electricity grid extension is technically or financially unviable. However, designing mini-grid business models that balance affordable service provision with acceptable cost recovery remains a challenge. Research on how to design effective business models points to the need for a more service-oriented approach, in which user needs and experiences are more clearly reflected in mini-grid business model design. In this paper, we explore how mini-grid business models might be designed so they are more responsive to user needs and maximise positive user experiences. Our study focuses on the case of a privately developed 6 kW solar PV mini-grid in northwestern Tanzania, commissioned in late 2018. We employ user journey mapping – a method drawn from service design – to better understand users' needs, expectations and experiences associated with adopting and using electricity services from the mini-grid, and behavioural and socio-cultural aspects of transition from traditional to modern energy services. We find that catering for household and business users requires more than a single value proposition from mini-grid developer. Moreover, expectation management is crucial to avoid disappointment and dissatisfaction amongst all groups of users after the mini-grid is up and running. Lastly, continuous engagement to improve the user experience after connection could mitigate the risk of service disuse or ‘energy stacking’. These findings are of relevance to policymakers and practitioners seeking to support scaling up of mini-grids in rural Africa as part of efforts to reach universal energy access.