Rethinking the sustainability and institutional governance of electricity access and mini-grids: electricity as a common pool resource

Rural mini-grids are viewed as a key technology for providing access to electricity to the billion or more people that lack it by 2030 (in line with the UN’s Sustainable Energy for All commitment). But at present no model for the sustainable management of rural mini-grids exists, which contributes to high failure rates. This paper makes a number of contributions. First, it explores how electricity in mini-grids might be understood as a Common Pool Resource (CPR), opening up potential to learn from the extensive literature on institutional characteristics of sustainable CPR management in the natural resource management literature. Second, it refines Agrawal’s (2001) overarching framework of enabling conditions for sustainable CPR management institutions to develop a framework applicable to rural mini-grid management in developing countries. Thirdly, the utility of this refined framework is demonstrated by applying it to analyse data from 27 semi-structured interviews with actors with expertise in mini-grid development and management in Kenya and 2 field visits to rural mini-grids there. This contributes a nuanced basis for future application of CPR theory to mini-grids and a systematic analysis of institutional challenges and possible solutions, which have hitherto received limited attention in the energy and development literature

IBEKA: Community-owned and Managed Mini Grids in Indonesia

Institut Bisnis dan Ekonomi Kerakyatan (IBEKA), or People Centred Economic and Business Institute, supports rural electrification by installing small-scale hydro or wind mini grids and setting up village-based organisations to own, maintain and operate the systems. Elements that support participation include community ownership of energy infrastructure (mini grid) alongside community-managed enterprises to run them. Revenue generated from the mini-grids are shared through a community fund and spent based on collective decision-making.Open Society Foundation

Sustainable mini-grid

Abstract Paper summarized the research done in min-grid field. Mini-grid is small, stand-alone power system, which role is to provide constant and affordable electricity in remote places, where the connection with main grid is unprofitable. Mini-grids are important tools in fight with power-poverty in developing countries. The economics of power technologies is widely analyzed in different studies. The paper presents the advantages of application of integrated sustainable assessment for analyzing different power technologies for mini-grids. The paper highlight the importance of environmental and social aspects and its influence on local community

Financial sustainability of mini-grid electricity distribution companies in Uganda

This study investigated the financial sustainability of electricity Mini-grids in Uganda. The challenges of sustainability of Mini-grids were recognised by Tenenbaum Bernard, Greacen Chris, Siyambalapitiya Tilak (2014) as well as Payen, Bordeleau and Young (2016), with a focus on developing countries, particularly in Asia. There is, however, no literature that was found on similar challenges in Uganda. The specific objectives of this study were to examine the profitability, liquidity, efficiency and operational sustainability of Mini-grids in Uganda. The study focused on four Mini-grids as case studies: Ferdsult Engineering Services Limited (FESL), Bundibugyo Energy Cooperative Society (BECS), Kilembe Investments Limited (KIL) and West Nile Rural Electrification Company (WENRECO). The research objective was addressed by analysing audited financial reports for the respective Mini-grids from 2010 to 2015 and other operational information published by the electricity regulator. The study established that Mini-grids in Uganda were not financially sustainable despite having steady growth in sales revenue and customer numbers. The main factors that affected the sustainability of Mini-grids include a higher growth rate in operational and maintenance costs compared to the sales revenue. In addition, operational efficiency challenges were observed, including energy losses, imprudent financial management practices and poor liquidity. These shortfalls consequently showed that the Mini-grids are not financially sustainable. Despite the fact that Mini-grids are not financially sustainable in Uganda, their benefits go beyond electricity provision. The other benefits of Mini-grids are socio-economic in nature, including support for health services and enhancement of economic activities and the livelihoods of the poor. The socio-economic benefits from access to electricity in these rural areas may far outweigh the financial limitations observed. It is therefore important that Mini-grids continue to get the necessary support until such a time as they become sustainable. It is recommended that the Government of Uganda should provide financial and operational support through subsidies or other support systems to ensure continuity of the Mini-grids and, ultimately, their financial sustainability in the medium term in order to enhance access to electricity and the knock- on benefits that come with this access. In this regard, governance and technical skills enhancement remain key in order for these -grids to move forward. Further research should establish the optimal size and internal operational parameters that will ensure the sustainability of the Mini-grids, the amount of government subsidy required and the time it would prudently take to attain sustainability

Electrification of Sub-Saharan Africa through PV/hybrid mini-grids: Reducing the gap between current business models and on-site experience

The absence of publicly available up-to-date costs breakdown data on photovoltaic (PV)/hybrid mini-grids in Sub-Saharan Africa (SSA) is a barrier that needs to be resolved in order to overcome challenges in rural electrification planning, regulation, life-cycle operation, financing, and funding. The primary aim of this research is to provide better understanding of the cost structures of PV/hybrid mini-grid projects in Sub-Saharan Africa. The review on existing literature reveals significant lack of transparency and inconsistencies in PV/hybrid mini-grid costs. This paper aims to support the fact that there still remains a strong need to reduce the gap between current business model concepts and successfully implemented scale-up electrification models. Based on the experience of PV/hybrid mini-grids projects implemented in various rural communities of SSA, we propose a multi-dimensional cost analysis with a standardised break-down of the real costs of installed projects. Subsequently, we assess the main social and environmental implications and we identify barriers that appear to hinder successful PV mini-grid planning and subsequent implementation in SSA. Africa has the unique opportunity to utilize renewable energy as a primary energy source. Indeed, the continent has the potential to bring electricity especially to its rural population by means of PV/hybrid mini-grids. However, the capability of public and private sector investors to preevaluate projects is limited by the lack of locally available information on PV/hybrid mini-grid costs or the reliability of data (when available). Multi-dimensional cost analysis of social and environmental impacts from this study highlight that PV/hybrid mini-grids offer a unique opportunity to create a standardised framework for quantifying costs of PV/hybrid mini-grids in SSA, that can support decision-making processes for designing viable business models. Findings show that there is a strong need to minimise the data quality gap between current business model and that of successfully implemented PV/hybrid mini-grids electrification projects. This gap could be mitigated through studying the issues that influence mini-grid costs (both hardware and software). In addition to understanding other factors that can influence project costs such as the market maturity and remoteness of the site, organisation capability, development approach, and level of community involvement. Regarding policy considerations, stronger political will coupled with proactive rural electrification strategies and targeted renewable energy regulatory framework would be essential in order to establish viable dynamic domestic market for off grid renewables. In the presented benchmarking analysis, the experiences of public and private development organisations are synchronized to contribute to the furthest extent possible to facilitate the assessment. Those include the disaggregation of component costs according to their unit in order to make comparison more accurate and include site-specific parameters in the discussion of costs.JRC.C.2-Energy Efficiency and Renewable

Electrification Modelling for Nigeria

AbstractReliable access to electricity still remains a challenge in many regions of Nigeria. For achieving a rapid electricity access for large geographic regions alternative electrification pathways apart from grid connection need to be taken into account. Therefore, sophisticated planning tools to determine techno-economic optimized electrification pathways are necessary. Here, an approach for such a tool is presented and combines GIS and energy system simulation tools. The approach is based on the identification of consumer clusters, determination of status of electrification and assignment of a suitable electricity supply option. Three options are taken into account: Grid extension, PV-hybrid mini-grids and solar-home systems (SHS). Within this study we have identified 47,489 consumer clusters for entire Nigeria and found that 46% of the people living in these clusters are currently not supplied with electricity. A connection of all customers within a 20km zone around the existing grid would have the largest impact with delivering electricity to 57.1 million people. Outside this grid zone, a population of 12.8 million is most suitably supplied by PV-hybrid mini-grids and 2.8 million by SHS. Therefore, a PV capacity in a range of 671 to 1,790 MW for mini-grids and 84 MW for SHS would be required

Impact of demand-side management on the sizing of autonomous solar PV-based mini-grids

Solar PV-based autonomous mini-grids represent an economically affordable and robust electrification option for rural communities. However, the initial investment cost for renewable energy technologies such as solar PV remains high for rural communities. Implementation of demand-side management (DSM) could increase the cost-efficiency of mini-grids in rural areas. This requires demand-side knowledge, but little is still known of electricity demands in recently electrified areas and, in particular, of how DSM implementation could impact mini-grids. The few studies available focus either on systems or on appliance levels while this study aims to determine cost-efficiency impacts of DSM implementation at a category level. A shifting strategy is applied based on classification into high priority loads and low priority loads. Autonomous rural mini-grid components sizing for four different load categories and load flexibility are carried out using particle swarm optimization. The results show that different load category combinations result in large variations in terms of possible levelized energy cost reductions and, thus, in terms of the cost-optimal sizing of the mini-grid components. The DSM implementation on the household and productive use categories have the largest capacity of reducing the levelized energy cost, by 45.8% and 20.7%, respectively, compared to the no demand-side management case

The role of private sector mini-grids

Research Brown Bag PresentationsUniversal rural electrification is a worthwhile target, but requires subsidy. This is because rural electrification targets remote, spread-out customers, which raises connection costs. The lower incomes of rural populations relative to urban dwellers also makes rural electrification financially unviable. This presentation argues that private sector mini-grids have a critical role in delivering universal electrification to at least 100 million people in Africa for the least amount of public subsidy. The study demonstrates that, for these 100 million people, mini-grids are the most cost-effective means of providing electricity. It also argues that mini-grids and the main grid will ultimately integrate to form the grid of the future, which means that mini-grids are not a dead end or a stop-gap measure. And, finally, the presentation shows that mini-grids facilitate private utilities, enabling them to serve rural customers better and faster.SERC; CrossBoundar

A review of renewable off-grid mini-grids in Sub-Saharan Africa

Sub-Saharan Africa (SSA) is home to 75% of the world’s unelectrified population, and approximately 500 million of these live in rural areas. Off-grid mini-grids are being deployed on a large scale to address the region’s electrification inequalities. This study aims to provide a comprehensive review of the research on the off-grid renewable mini-grids in SSA. The study covers the current status of the level of deployment of off-grid mini-grids. It also reviews multi-criteria decision-making models for optimizing engineering, economics, and management interests in mini-grid siting and design in SSA. The statuses of financing, policy, and tariffs for mini-grids in SSA are also studied. Finally, the current status of energy justice research in respect of mini-grids in SSA is reviewed. The study shows the important role of decentralized renewable technologies in the electrification of SSA’s rural population. Within a decade since 2010, the rural electrification rate of SSA has increased from 17% to 28%, and 11 million mini-grid connections are currently operational. Despite these gains, the literature points to several injustices related to the present model by which SSA’s renewable mini-grids are funded, deployed, and operated. Hence, several recommendations are provided for the effective application of the energy justice framework (EJF) for just and equitable mini-grids in SSA

The use of single wire earth return (SWER) as a potential solution to reduce the cost of rural electrification in Uganda

I. P. Da Silva; P. Mugisha; P. Simonis; G. R. Turyahikayo - Electrification and energy provision in rural areasThe rural electrification in Uganda is facing an enormous challenge following the ongoing process of privatisation/liberalisation of the power sector. The Electricity Act enacted in November 1999 provides for more power utilities in the generation, transmission and distribution of electricity, ending a more than 40 years of monopoly of Uganda Electricity Board (UEB), a government parastatal. One of the consequences of this Act is that rural electrification pass to be responsibility of the Ministry of Energy and Mineral Development. This ministry issued a document “Rural Electrification, Strategy and Plan”[1] whose overall objective is to increase electricity accessibility in the rural areas from the actual less than 1% to 10% within 10 years. It supposes to electrify 300,000 new rural households. This objective is meant to be achieved using gridextension, mini-grids and photovoltaic solar systems. This present paper considers the possibility of using SWER for grid-extension and mini-grids aiming at reducing costs. Technical and regulatory aspects are presented.The rural electrification in Uganda is facing an enormous challenge following the ongoing process of privatisation/liberalisation of the power sector. The Electricity Act enacted in November 1999 provides for more power utilities in the generation, transmission and distribution of electricity, ending a more than 40 years of monopoly of Uganda Electricity Board (UEB), a government parastatal. One of the consequences of this Act is that rural electrification pass to be responsibility of the Ministry of Energy and Mineral Development. This ministry issued a document “Rural Electrification, Strategy and Plan”[1] whose overall objective is to increase electricity accessibility in the rural areas from the actual less than 1% to 10% within 10 years. It supposes to electrify 300,000 new rural households. This objective is meant to be achieved using gridextension, mini-grids and photovoltaic solar systems. This present paper considers the possibility of using SWER for grid-extension and mini-grids aiming at reducing costs. Technical and regulatory aspects are presented