Mini Grids for Half a Billion People : Market Outlook and Handbook for Decision Makers
Approximately 1.2 billion people will need to gain access to electricity to achieve universal access by 2030. The only way to achieve this is through a combination of the main grid extension, mini grids, and off-grid solar. This report shows that a...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/300241561040821658/Mini-Grids-for-Half-a-Billion-People-Market-Outlook-and-Handbook-for-Decision-Makers-Executive-Summary http://hdl.handle.net/10986/31926 |
| Summary: | Approximately 1.2 billion people will
need to gain access to electricity to achieve universal
access by 2030. The only way to achieve this is through a
combination of the main grid extension, mini grids, and
off-grid solar. This report shows that about half a billion
people can be cost-effectively provided with electricity
through mini grids. The combination of falling costs,
dramatic increase in the quality of service, and favorable
enabling environments have made modern mini grids a scalable
option to complement grid extension and solar home systems.
The report is the most comprehensive study on mini grids to
date. It takes stock of the global mini grid market and
industry; analyzes in detail the solar-hybrid mini grid
costs and technological innovations; shows the importance of
introducing income-generating machinery and micro-finance
early in the planning process; and provides policy makers,
investors and developers with insights on how mini grids can
be scaled up. Modern mini grids can pave the way for more
financially viable future grid expansion, as by the time the
main grid arrives, significant demand for electricity
already exists and customers have a greater ability to pay.
The key is to define—in advance—technical standards and
commercial options for integration once the main grid
arrives. A win-win situation for both the mini grid
developers and national utilities. Mini grids are not a new
phenomenon: nearly all electricity grid systems in
high-income countries started with isolated mini grids,
which gradually interconnected. Over the past several
decades throughout the rest of the world, mini grids have
grown from a niche solution for electrification to being
deployed widely. Globally, at least 19,000 mini grids are
installed in 134 countries, representing a total investment
of 28 billion US Dollars and providing electricity to about
47 million people. Asia has the most mini grids installed
today, while Africa has the largest share of planned mini
grids. However, at present, the combined mini grid
investment in countries with low levels of electricity
access in Africa and Asia totals only 5 billion US Dollars,
compared to the 220 billion US Dollars needed to connect 500
million people to 210,000 mini grids in these regions by
2030. Therefore, across the globe, countries need to
actively mobilize private sector investment. This can be
achieved by setting up policies that support comprehensive
electrification programs, promoting viable business models,
and providing well-designed public funding, for example
through performance-based grants. |
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