Renewable Energy Microgrids and Livelihood Diversification in South African Rural Communities: An Economic Sustainability Assessment

Renewable energy microgrids have emerged as a promising solution for enhancing electricity access in rural areas of South Africa, where traditional grid connections are often limited or non-existent. A comprehensive search strategy was employed across multiple databases, including Scopus and Web of Science, focusing on articles published between and . Studies were critically appraised using predefined inclusion criteria to ensure the quality and relevance of the reviewed literature. Microgrids have been found to diversify livelihoods by providing off-grid energy for productive uses such as irrigation, enhancing agricultural productivity and reducing reliance on traditional fuels like firewood or kerosene. Proportions of households adopting microgrids varied from 20% in less arid regions to up to 50% in semi-arid areas. The review underscores the potential of renewable energy microgrids as a sustainable approach for improving livelihoods and economic resilience in South African rural communities, particularly when tailored to local conditions and needs. Policy makers should consider incentivizing the adoption of renewable energy microgrids through subsidies or grants, while also promoting awareness campaigns on their benefits and operational aspects. The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.