Discover the study "Mini Grid Solutions for Underserved Customers: New Insights from Nigeria and India" written by Bernard Tenenbaum, Chris Greacen and Ashish Shrestha
Foreword's extract:
"Mini grids, powered by solar and batteries, are emerging as a key option in advancing rural electrification for the hundreds of millions of people who do not have access to modern energy. What was once a fringe element of power supply is now coming to the forefront of a new paradigm of distributed energy resources.
The World Bank’s Global Facility on Mini Grids has been a pioneer in nurturing the growth of such mini grids. Together with several development partners, we have directed resources and expertise to mobilize private investment in mini grids for isolated villages of Africa and Asia. Such mini grids produce two concrete benefits. First, they can provide first-time access to reliable electricity. Second, they lead to immediate reductions in harmful emissions by reducing the need to run polluting diesel and gasoline generators. Nevertheless, these potential benefits can only be achieved if the mini grid’s electricity is affordable and can achieve commercial sustainability.
We have seen the recent emergence of a new type of mini grid in low- and middle-income countries: undergrid mini grids. Undergrid mini grids (both interconnected and non-interconnected to the main grid) are being built in communities that are connected to the grid but face poor service supply. In response, firms are beginning to build and operate undergrid solar hybrid mini grids in these countries. In India, more than 600 non-interconnected undergrid mini grids have been built in rural communities. In Nigeria, early examples of undergrid mini grids that are now interconnected have the potential to lower their capital and operating costs through bulk purchases and sales. This, in turn, can make the mini grid’s electricity more affordable for its customers and facilitate commercial sustainability.
The key question is whether undergrid mini grids, whether interconnected or non-interconnected, can be scaled up in other countries where the need is great due to grid electricity supply. The answer will depend on whether commercial, technical, and regulatory arrangements can be created for undergrid mini grids that will produce win-win-win economic outcomes for consumers, local Discos, and private mini grid developers..."
