CLEAN ENERGY MINI-GRID POLICY DEVELOPMENT GUIDE
Mini-grids have been identified as a critical tool towards achieving universal electricity access by governments, donors and private sector actors alike. To enable the sustainable deployment of mini-grids, the public and private sector need to cooperate. Policies and regulations which support the most suitable mini-grid delivery models need to be developed to allow the sector to scale. The Clean Energy Mini-Grid Policy Development Guide, developed in partnership by ARE, AMDA, UNIDO, INENSUS and the AfDB Green Mini-Grid Help Desk, outlines the various forms and models that public-private cooperation could take and reflects on the outcomes of policy decisions on mini-grid deployment.
While the guide is not exhaustive, it provides an overview of the most important aspects of mini-grid policy, with the aim of supporting policy makers to accelerate mini-grid deployment and to help guide national debates and decision making on rural electrification policies and frameworks.
The guide incorporates lessons learnt from existing mini-grid policies and regulations and presents the key decisions that need to be taken by policymakers in designing the most appropriate mini-grid framework for their country. A decision tree designed for policymakers outlines which combination of key decisions leads to which outcome.
Five critical conclusions may be drawn from the guide:
- Sustainable mini-grid business/delivery models require scale.
- The way in which mini-grids are ultimately deployed, including the degree of private sector involvement, depends on decisions taken by government.
- Large government control over mini-grid deployment, minimum financial subsidies and low end consumer tariffs cannot all be achieved at the same time.
- The development of electricity demand in rural areas is difficult to predict, making it important to introduce demand risk mitigation instruments in the policy framework.
- The risk of a sudden end to the project, i.e. the termination risk, ought to be considered by policy makers and regulators.
The Clean Energy Mini-grid Policy Development Guide in English and French versions along with the Templates are available here:
CEMG Development Guide EN.pdf CEMG Development Guide FR.pdf Concession Agreement Template.pdf EPC Agreement Template.pdf ESMP Template.pdf Mini-Grid Regulation Template.pdf RBF Grant Agreement Template.pdf
NEW REPORT: BENCHMARKING AFRICA’S MINIGRIDS
New data confirms distributed energy minigrids most reliable, affordable option for African governments seeking effective rural electrification and improved livelihoods, but lengthy and unpredictable approvals stymie growth
The Africa Minigrid Developers Association (AMDA) is proud to publish the first edition of our annual Benchmarking Africa’s Minigrids report, which for the first time measures industry performance through a comprehensive dataset across 12 countries and 28 companies, encompassing market leaders and newcomers. The report confirms the essential role of minigrids in ensuring delivery of affordable, clean and reliable electricity to all Africans, and spotlighted both barriers to accelerated growth and ways to overcome them.
The report, produced together with Economic Consulting Associates (ECA) and Odyssey Energy Solutions, covers a 10-year period and focuses on important metrics such as installed and operating costs, financing, quality of service and regulatory approval times. It provides a previously absent methodology and transparency to track the fast-evolving minigrid sector.
Key Findings include:
- Minigrids outperform utilities on affordability
- Installed costs have dropped more than 60% since 2015
- Minigrids offer significantly better service than the central grid
- Regulations are stunting minigrid sector growth
- Revenues per customer remain very low
- Public funding is key to unlocking private capital