An analysis of remote electric mini-grids in Laos using the Technological Innovation Systems approach

Abstract

The electrification of the world's rural poor is an important aim of the United Nations. Off-grid technologies, such as electric mini-grids are seen as appropriate solutions. However, their diffusion rate in developing countries is not sufficient to reach poverty reduction targets. In this paper we analyze the case of remote electric mini-grids in Laos, a least-developed country characterized by many barriers to the diffusion of modern technology. We apply the Technological Innovation Systems (TIS) approach in order to derive policy recommendations on how to increase the diffusion rate. As the TIS framework has hardly been applied to such challenging contexts, we also aim to produce insights for the theoretical advancement of the TIS literature. Our analysis, which draws from secondary and primary data collected through field work, points to two systemic root causes for the low diffusion rate: institutional mismatches within and across geographical levels as well as hampered flows of resources across these levels. Based on these findings we derive policy recommendations proposing to formulate a national technology-specific electrification strategy. In terms of insights for the TIS community, we suggest to strengthen the role of culture in empirical TIS analyses and to extend the definition of one specific TIS function.