This study revisits the financial viability and social benefits of renewable microgrids in Ethiopian rural communities. A comprehensive review of existing literature and financial data from multiple microgrid projects in different Ethiopian rural areas was conducted. Statistical models were used to analyse the cost-benefit ratios and social outcomes. The analysis revealed that, on average, renewable microgrids generated a net profit of 50 per household per month, with significant reductions in energy costs for beneficiaries. Renewable microgrids offer substantial financial benefits to rural Ethiopian communities, with clear evidence supporting their economic viability and social impact. Government policies should prioritise the expansion of renewable microgrid projects in underserved rural areas to maximise social welfare and environmental sustainability. The empirical specification follows Y=₀+^ X+, and inference is reported with uncertainty-aware statistical criteria.
Mengisteab et al. (Mon,) studied this question.