The paradox of mini-grid business models: A conflict between business viability and customer affordability in rural India
Loading...
Access rights
openAccess
publishedVersion
URL
Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
This publication is imported from Aalto University research portal.
View publication in the Research portal (opens in new window)
View/Open full text file from the Research portal (opens in new window)
View publication in the Research portal (opens in new window)
View/Open full text file from the Research portal (opens in new window)
Authors
Bandi, Venkata
Sahrakorpi, Tiia
Paatero, Jukka V.
Lahdelma, Risto
Date
Major/Subject
Mcode
Degree programme
Language
en
Pages
16
Series
Energy Research and Social Science, Volume 89
Abstract
Policy-makers struggle with the following wicked problem in the energy access context: if existing socio-technical solutions can alleviate energy poverty, why is the energy transition slower than expected in rural Bottom of the Pyramid (BoP) markets? Here, social enterprises are starting to play a vital role. Using Husk Power Systems (HPS) as a longitudinal case study, we analyse how a social enterprise in India attempts to serve low-income customers. In this study, we aim to address the following research question: how and to what extent can a mini-grid based social enterprise resolve the technical and organisational challenges associated with providing services in a rural BoP environment? Our interdisciplinary approach navigates the landscape between social entrepreneurship and socio-technical aspects of mini-grid operations in the rural BoP market using a Multi-Level Perspective (MLP). We rely on narrative analysis to delineate the complexities of mini-grid operations in low-income settings to integrate on-site experiences and firm-level processes to energy access discourse. The paper argues that continuous conflicts exist between social and commercial objectives concerning the socio-technical configuration of mini-grids in the rural BoP markets. As this case study reveals, social enterprises need to manage the socio-technical complexities inherent to mini-grid processes; otherwise, customer affordability and business viability become an unsolvable paradox. The sustainability of a business model depends on how socio-technical aspects of the mini-grid are designed, managed and operated. Finally, this study proposes a business model framework integrating social and technical aspects employing socio-technical regimes in the MLP.Description
Keywords
Other note
Citation
Bandi, V, Sahrakorpi, T, Paatero, J V & Lahdelma, R 2022, 'The paradox of mini-grid business models: A conflict between business viability and customer affordability in rural India', Energy Research and Social Science, vol. 89, 102535. https://doi.org/10.1016/j.erss.2022.102535