Smart grid network Central African Republic

Are mini-grids the future of smart grid development?

The rapid evolution in distributed energy technologies and services is showing us that, Smart Grids will similarly soon overtake outdated electrification approaches based solely on hub-and-spoke main-grid extension. In this evolution, mini-grids are already playing an important role as nuclei and test centers for Smart Grid development.

Are smart mini-grids the future of rural electrification?

Technological innovation has improved the reliability and cost of smart mini-grids, making them an ideal technology to address rural electrification. Concessional funds have been - and remain - key to rural electrification efforts worldwide.

How did the small power producers framework affect Tanzania's mini-grids?

In 2008, Tanzania adopted a new regulatory framework to encourage low-cost investment in mini-grids, called the small power producers (SPP) framework, which caused the number of mini-grids to double. The financial mechanism created – a feed-in tariff – was technology neutral, which favored biomass and hydro development with low generation cost.

Can the private mini-grid sector be a key tool for universal electrification?

Though progress has been made by each of these stakeholders over the past few years, more will be needed over coming decades to ensure that the private mini-grid sector achieves its potential as a key tool for meeting the continents universal electrification tar- gets.

What makes a good funding structure for mini-grid developers?

The second major component of an effective funding structure for mini-grid developers is project level debt. This debt needs to either be offered on concessional terms or blended with other grant and concessional funding in order to be a viable option.