Publication: Mini-Grids and Arrival of the Main Grid: Lessons from Cambodia, Sri Lanka, and Indonesia
Loading...
Files in English
4,937 downloads
Published
2018-12
ISSN
Date
2017-12-18
Author(s)
Editor(s)
Abstract
One of the key concerns raised by the developers of mini grids is "what will become of my mini grid when the main grid arrives?" This report presents detailed case studies of what happened to isolated mini grids in Cambodia, Sri Lanka, and Indonesia when the main grid reached their villages. Six possible outcomes are described: 1) conversion to a small power producer (SPP), 2) conversion to a small power distributor (SPD), 3) conversion to a combined SPP and SPD, 4) side-by-side operation of the mini grid and main grid without any physical connection between the two systems, 5) compensation and exit, and 6) abandonment. Each case study describes the regulatory, commercial, and technical characteristics that affected the observed outcomes for the community-owned hydro mini grids in Sri Lanka and Indonesia and the privately-owned diesel mini grids in Cambodia
Link to Data Set
Citation
“Tenenbaum, Bernard; Greacen, Chris; Vaghela, Dipti. 2018. Mini-Grids and Arrival of the Main Grid: Lessons from Cambodia, Sri Lanka, and Indonesia. Energy Sector Management Assistance Program Technical Report; No. 013/18. © World Bank. http://hdl.handle.net/10986/29018 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa(Washington, DC: World Bank, 2014-01-15)Most Sub-Saharan African countries try to promote rural electrification through both centralized and decentralized approaches. This guide focuses on the decentralized approach, providing practical guidance on how small power producers and mini-grid operators can deliver both electrification and renewable energy in rural areas. It describes four basic types of on- and off-grid small power producers, as well as several hybrid combinations that are emerging in Africa and elsewhere. The guide highlights the ground-level regulatory and policy questions that must be answered by electricity regulators, rural energy agencies, and ministries to promote commercially sustainable investments by private operators and community organizations. Among the practical questions addressed is how to design and implement retail tariffs, quality of service standards, feed-in tariffs, and backup tariffs. The guide also analyzes the regulatory implementation issues triggered by donor grants and so-called top-up payments. It provides a primer for nonengineers on interconnection and operating standards for small power producers connected to main grids and isolated mini-grids. It analyzes whether the option of small power distributors, used widely in Asia, could be employed in Sub-Saharan Africa, and addresses two often ignored questions: what to do “when the big grid connects to the little grid” and how to practice light-handed regulation. Finally, the guide considers the threshold question of when to regulate and when to deregulate tariffs. All these implementation issues are presented with specific ground-level options and recommendations rather than just general pronouncements. In addition, to make the discussion more useful to practitioners, the guide provides numerous real-world examples of successful and unsuccessful regulatory and policy actions taken in Kenya, South Africa, and Tanzania, as well as Nepal, Sri Lanka, and Thailand. Many of the decisions are inherently controversial because they directly affect the economic interests of investors and consumers. The guide highlights rather than hides these real-world controversies by drawing upon candid comments of key stakeholders—national utility managers, mini-grid operators, government officials, and and consumers.Publication Mini Grids for Underserved Main Grid Customers(Washington, DC: World Bank, 2024-06-21)Can mini grids help to solve the problem of poorly served main grid connected communities A mini grid is an electricity generation and distribution network that supplies electricity to a localized group of customers. Mini grids can be isolated from or connected to the main grid. To date, most mini grids in Sub-Saharan Africa have been built in electrically isolated rural villages not connected to the main grid. Based on broad experience working with mini grid programs in more than 20 low- and middle-income countries and five detailed case studies, the authors offer observations and recommendations about mini grids in general and a new type known as “undergrid mini grids” being used in Nigeria and India to serve poorly served communities.Publication Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification Technologies(Washington, DC, 2007-12)This report is part of the Energy and Water Department's commitment to providing new techniques and knowledge which complement the direct investment and other assistance to electrification as provided by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The purpose of this report is to convey the results of an assessment of the current and future economic readiness of electric power generation alternatives for developing countries. The objective of the technical and economic assessment was to systematically characterize the commercial and economic prospects of renewable and fossil fuel-fired electricity generation technologies now, and in the near future. The study was designed to cover the widest possible range of electrification applications faced by energy services delivery and power system planners, whether supply is provided through grid networks or stand-alone or mini-grid configurations. The assessment was conducted using a standard approach and is presented in a consistent fashion for each power generation technology configuration. The assessment time frame includes current status and forecast development trends over the period 2005-15, while the economic assessment considers a range of typical operating conditions (peak, off-peak) and grid configurations (off-grid, mini-grid, interconnected grid) for various scales of demand. The technology characterization reflects the current stage of commercialization, including indicative cost reduction trends over 10 years. This study is limited in several ways. First, it is time-bound. It does not reflect new technology developments or new secular trends that have emerged since the terms of reference were formalized. Secondly, it is bound by the available literature. Thirdly, the results are generalized and represent averaging over what are important specific conditions (although the uncertainty analysis accounts for this somewhat).Publication Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification Technologies : Annex 1. Detailed Technology Descriptions and Cost Assumptions(Washington, DC, 2007-12)This report is part of the Energy and Water Department's commitment to providing new techniques and knowledge which complement the direct investment and other assistance to electrification as provided by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The purpose of this report is to convey the results of an assessment of the current and future economic readiness of electric power generation alternatives for developing countries. The objective of the technical and economic assessment was to systematically characterize the commercial and economic prospects of renewable and fossil fuel-fired electricity generation technologies now, and in the near future. The study was designed to cover the widest possible range of electrification applications faced by energy services delivery and power system planners, whether supply is provided through grid networks or stand-alone or mini-grid configurations. The assessment was conducted using a standard approach and is presented in a consistent fashion for each power generation technology configuration. The assessment time frame includes current status and forecast development trends over the period 2005-15, while the economic assessment considers a range of typical operating conditions (peak, off-peak) and grid configurations (off-grid, mini-grid, interconnected grid) for various scales of demand. The technology characterization reflects the current stage of commercialization, including indicative cost reduction trends over 10 years. This study is limited in several ways. First, it is time-bound. It does not reflect new technology developments or new secular trends that have emerged since the terms of reference were formalized. Secondly, it is bound by the available literature. Thirdly, the results are generalized and represent averaging over what are important specific conditions (although the uncertainty analysis accounts for this somewhat).Publication Five Government Approaches to Promote Solar Hybrid Mini grids in Africa(Washington, DC: World Bank, 2025-02-14)Different private sector-led and government-led approaches to the development of solar hybrid mini grids are found around the world. Five approaches used in Africa are reviewed here. Each works better in some contexts than in others; each has advantages and disadvantages. In private-sector-led approaches, private developers choose mini grid sites based on their own criteria; in government-led approaches, governments conduct competitive procurements to award individual sites or zonal concessions. In a variant of the government-led approach, utilities help private companies create and operate mini grids that are later absorbed into the utility’s power system. All approaches involve capital subsidies. What is at stake here Rapid expansion of access to electricity depends on finding the best way to promote mini grids in countries with different starting conditions.
Users also downloaded
Showing related downloaded files
Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication The Container Port Performance Index 2020 to 2024: Trends and Lessons Learned(Washington, DC: World Bank, 2025-09-22)The Container Port Performance Index (CPPI) provides a global benchmark of how container ports perform in handling vessel calls. Developed jointly by the World Bank and S&P Global Market Intelligence, it measures the time ships spend in port and relates this to the number of containers moved during that time. This approach makes the CPPI a unique diagnostic tool that can highlight patterns in port operations and shed light on global and regional supply chain dynamics. Now in its fifth edition, the CPPI report covers the period from 2020 to 2024. It builds on a well-established methodology to generate scores for more than 400 container ports worldwide. Over time, the CPPI has become a trusted reference point for policymakers, industry stakeholders, and researchers who seek to understand how ports adapt to shocks, recover from disruptions, and identify opportunities for investments, reform and modernization. A major innovation in this edition is the introduction of multi-year trend analysis. Rather than presenting annual snapshots, the report now tracks how CPPI scores have changed across five years. This longitudinal perspective reveals shifts in port performance, showing where scores have risen, fallen, or remained stable. By linking these movements to external factors, the CPPI offers insights into how global and regional supply chains evolve under pressure. The results clearly mirror the crises that have shaken global trade. During the COVID-19 pandemic, CPPI scores in different regions declined sharply as congestion, equipment shortages, and delays overwhelmed many ports. By 2023, global averages rebounded in parallel with easing freight markets and reduced congestion. Yet 2024 brought new challenges: the Red Sea crisis disrupted major trade lanes, while climate-related constraints at the Panama Canal added further stress. These shocks were reflected in lower global and several regional average scores, underscoring the vulnerability of maritime transport to geopolitical and environmental events. The CPPI is not about comparing one port against another, but about understanding changes in performance over time. Ports that improved their scores often did so by reducing time at anchor, optimizing berth operations, investing in digital tools, and strengthening coordination across logistics partners. The evidence confirms that improvements are possible across ports of all sizes, and that rising scores are linked to deliberate actions to minimize time in port relative to containers moved. By consolidating five years of results, this edition transforms the CPPI into a long-term reference point. It shows how global crises have affected shipping, how different regions have adapted, and what lessons can be drawn for future resilience. The World Bank and S&P Global Market Intelligence remain committed to maintaining the CPPI as a global public good, providing transparency, comparability, and practical insights to support more reliable and sustainable maritime supply chains.Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.