Consultancy
Renewable energy. Rural electrification Power generation
Identifying the gaps and building the evidence base on Low Carbon Mini-grids
| Country : | Tanzania. Kenya. Nigeria. Ethiopia. Malawi. Mozambique. Rwanda |
| Client : | DFID-Department for International Development . |
| Start Date : | December 2012 |
| Completion Date : | March 2013 |
| Value of services : | 130 000 € |
| Funder : | DFID (Department for International Development) |
| Associate/Partner : | N/A |
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| Description : |
Main objectives of this study: • To analyze the existing international mini-grid sector (diesel, renewable, hybrid) and to assess the potential for scaling-up green mini-grid development; • To promote, and include in new DFID portfolio, alternative energy solutions & programmes to reach larger electricity access in poor and remote areas, with key focus on Africa and ICF priority countries, taking account of social, economical and environmental factors. |
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| Description of the Actual Services Provided | The following points have been studied: • current state of the art internationally with regards to mini-grid (diesel, renewable and hybrid) implementation - presenting installed capacity, investment and performance data across technologies, implementers, donors, business models, countries and regions. • Definition of contexts where mini-grids are the optimal solution to electrification as opposed to household systems or grid-based approaches for given technologies and resources (micro-hydro, solar PV, wind, bioenergy, diesel and hybrid), consumer densities and characteristics and proximities to the grid • Benchmark of performance and impact of low carbon mini-grids worldwide in terms energy access, emissions reductions and job creation; comparison with on-grid and household scale intervention. Benchmarks are based on a cost-benefit model (including sensitivity analysis) for all renewable technologies included in the study. • Analyses of the financing gap in terms of delivering and replicating mini-grid schemes of different technology types. Study of the experience in terms of cost recovery and tariff collection with respect to repaying capital and ongoing costs. Assessment of the importance of including an anchor (larger enterprise) customer on a mini-grid. Building of a financial model for each of the technology types based on real scheme data in different countries, and assessment of project financing viability gaps overall, timing issues (in terms of expenditure and revenue profiles) • Analyses of available evidence on the key institutional, management and governance elements necessary for a successful mini-grid scheme in terms of raising finance and successfully completing construction, as well as continuing to provide long term sustainable service. Study of the most effective and viable role that end consumers can play in the process of mini-grid development. Analyses on best practice approaches to mini-grid construction, operation and maintenance, tariff collection/payment and governance – both separately (unbundled) and as a whole • Study on the expansion of mini-grids acceleration and holding back in different countries by policy and regulatory environments and energy sector structuring. Analyse of the key elements of national policy which need to be in place in order for mini-grids to be a viable delivery option. • Potential assessment for linking mini-grids and using “smart” technology to balance supply and demand across different mini-grids. Study of later possible integration with a centralised grid management. Research on the role and best practice in energy storage technologies on mini-grids where using intermittent renewables. • Analyse of key gaps and barriers to be addressed for drawing a programme targeting green mini-grids development in term of skills and resources to bring in, geographical areas to focus on and intervention strategies to be considered. Policy and capacity/enabling interventions alongside financing (grants, loans, guarantees and feed-in tariffs/results-based payments) have been considered. |