Lessons Learned from Rural Electrification Experiences with Third Generation Solar Home Systems in Latin America: Case Studies in Peru, Mexico, and Bolivia

Abstract

There are 17 million people without access to electricity services in Latin America. This population lives in small isolated and scattered communities with low incomes where it is difficult to achieve 100% access to electricity by the grid extension. Therefore, it is necessary to create market mechanisms and promote off-grid electrification in which photovoltaic (PV) technology plays a fundamental role. This research assesses successful projects developed in Peru, Mexico, and Bolivia, where 3rd Generation Solar Home Systems (3G-SHSs) are being introduced to support off-grid initiatives. To do so, we applied a mixed-methods approach including a comparative case study analysis, an extensive literature review, focus group discussions, and field research. Thereby, the lessons learned reveal that confidence, commitment, and flexibility are the main pillars of rural electrification. Additionally, it is demonstrated that the combination of various business models—an energy service company, fee-for-service, pay-as-you-go, and a microfranchising—with 3G-SHSs is powerfully effective in terms of sustainability. Our findings are useful to policy makers, researchers, promoters, and other stakeholders to rethink intervention strategies in rural areas. Access to electricity must be a state policy to facilitate the participation of new actors, especially of the private sector and communities, and the introduction of innovative business models and high-quality technology.