Approximately 1.2 billion people willneed to gain access to electricity to achieve universalaccess by 2030. The only way to achieve this is through acombination of the main grid extension, mini grids, andoff-grid solar. This report shows that about half a billionpeople can be cost-effectively provided with electricitythrough mini grids. The combination of falling costs,dramatic increase in the quality of service, and favorableenabling environments have made modern mini grids a scalableoption to complement grid extension and solar home systems.The report is the most comprehensive study on mini grids todate. It takes stock of the global mini grid market andindustry; analyzes in detail the solar-hybrid mini gridcosts and technological innovations; shows the importance ofintroducing income-generating machinery and micro-financeearly in the planning process; and provides policy makers,investors and developers with insights on how mini grids canbe scaled up. Modern mini grids can pave the way for morefinancially viable future grid expansion, as by the time themain grid arrives, significant demand for electricityalready exists and customers have a greater ability to pay.The key is to define—in advance—technical standards andcommercial options for integration once the main gridarrives. A win-win situation for both the mini griddevelopers and national utilities. Mini grids are not a newphenomenon: nearly all electricity grid systems inhigh-income countries started with isolated mini grids,which gradually interconnected. Over the past severaldecades throughout the rest of the world, mini grids havegrown from a niche solution for electrification to beingdeployed widely. Globally, at least 19,000 mini grids areinstalled in 134 countries, representing a total investmentof 28 billion US Dollars and providing electricity to about47 million people. Asia has the most mini grids installedtoday, while Africa has the largest share of planned minigrids. However, at present, the combined mini gridinvestment in countries with low levels of electricityaccess in Africa and Asia totals only 5 billion US Dollars,compared to the 220 billion US Dollars needed to connect 500million people to 210,000 mini grids in these regions by2030. Therefore, across the globe, countries need toactively mobilize private sector investment. This can beachieved by setting up policies that support comprehensiveelectrification programs, promoting viable business models,and providing well-designed public funding, for examplethrough performance-based grants.
PDF
download
878987797
028-85220240
