Business models for mini-grid electricity in base of the pyramid markets

•This study explores mini-grid business models.•A business model framework specific to mini-grids is developed.•Configurations of business model elements are analysed.•Implications for mini-grid success and policymakers are discussed.

This research project develops a business model framework based on the robust management literature on business models and uses the framework to analyze 24 mini-grid business models that serve “base of the pyramid” markets. The framework is based on the four dimensions of a business model that strategy scholars have identified, and is tailored to the unique circumstances of mini-grids that serve BOP customers. The study identifies 29 configurations of elements within mini-grid business models that supply a large—and growing—unmet demand for electricity in these markets. Analyzing these configurations results in a series of observations that pave the way for future research on mini-grid business models, as well as a number of trends within the off-grid electrification sector. The implications of these findings, and areas for further research, are also discussed.