ABSTRACT

Rural communities in South Africa face still experience the challenges of not having access to electricity. The use of generators has been common; however, alternative sources of electricity are required due to cost and environmental concerns. The study aims to provide strategies for successfully implementing renewable energy microgrids to promote economic development in rural areas of the Eastern Cape. The data was collected from small businesses operating in the rural areas of the Eastern Cape. The study used a qualitative method design and structured interviews supported by a few closed-ended questions. The study revealed that businesses spend most of their earnings on fuel for diesel-powered generators, making their operations non-profitable. Further studies can focus on the life cycle assessment of the microgrids for the various businesses in rural areas.