Technical Paper

Mini Grids for Half a Billion People : Market Outlook and Handbook for Decision Makers

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collection.link.263
https://openknowledge.worldbank.org/handle/10986/17456
collection.name.263
ESMAP papers
dc.contributor.author
Energy Sector Management Assistance Program
dc.date.accessioned
2019-06-20T17:16:29Z
dc.date.available
2019-06-20T17:16:29Z
dc.date.issued
2019-06
dc.description.abstract
Approximately 1.2 billion people will need to gain access to electricity to achieve universal access by 2030. The only way to achieve this is through a combination of the main grid extension, mini grids, and off-grid solar. This report shows that about half a billion people can be cost-effectively provided with electricity through mini grids. The combination of falling costs, dramatic increase in the quality of service, and favorable enabling environments have made modern mini grids a scalable option to complement grid extension and solar home systems. The report is the most comprehensive study on mini grids to date. It takes stock of the global mini grid market and industry; analyzes in detail the solar-hybrid mini grid costs and technological innovations; shows the importance of introducing income-generating machinery and micro-finance early in the planning process; and provides policy makers, investors and developers with insights on how mini grids can be scaled up. Modern mini grids can pave the way for more financially viable future grid expansion, as by the time the main grid arrives, significant demand for electricity already exists and customers have a greater ability to pay. The key is to define—in advance—technical standards and commercial options for integration once the main grid arrives. A win-win situation for both the mini grid developers and national utilities. Mini grids are not a new phenomenon: nearly all electricity grid systems in high-income countries started with isolated mini grids, which gradually interconnected. Over the past several decades throughout the rest of the world, mini grids have grown from a niche solution for electrification to being deployed widely. Globally, at least 19,000 mini grids are installed in 134 countries, representing a total investment of 28 billion US Dollars and providing electricity to about 47 million people. Asia has the most mini grids installed today, while Africa has the largest share of planned mini grids. However, at present, the combined mini grid investment in countries with low levels of electricity access in Africa and Asia totals only 5 billion US Dollars, compared to the 220 billion US Dollars needed to connect 500 million people to 210,000 mini grids in these regions by 2030. Therefore, across the globe, countries need to actively mobilize private sector investment. This can be achieved by setting up policies that support comprehensive electrification programs, promoting viable business models, and providing well-designed public funding, for example through performance-based grants.
en
dc.identifier
http://documents.worldbank.org/curated/en/300241561040821658/Mini-Grids-for-Half-a-Billion-People-Market-Outlook-and-Handbook-for-Decision-Makers-Executive-Summary
dc.identifier.uri
http://hdl.handle.net/10986/31926
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
ESMAP Technical Report;014/19
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
ELECTRICITY
dc.subject
ACCESS TO ENERGY
dc.subject
ELECTRICITY ACCESS
dc.subject
ELECTRICITY GRID
dc.subject
MINI GRID
dc.subject
SERVICE DELIVERY
dc.subject
UTILITIES
dc.subject
ENERGY FINANCE
dc.title
Mini Grids for Half a Billion People
en
dc.title.subtitle
Market Outlook and Handbook for Decision Makers
en
dc.type
Technical Paper
en
okr.date.disclosure
2019-06-25
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: ESMAP Paper
okr.docurl
http://documents.worldbank.org/curated/en/300241561040821658/Mini-Grids-for-Half-a-Billion-People-Market-Outlook-and-Handbook-for-Decision-Makers-Executive-Summary
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b086de6d27_1_0
okr.identifier.internaldocumentum
31178531
okr.identifier.report
138093
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/300241561040821658/pdf/Mini-Grids-for-Half-a-Billion-People-Market-Outlook-and-Handbook-for-Decision-Makers-Executive-Summary.pdf
en
okr.sector
Energy and Extractives
okr.theme
Rural development :: Rural services and infrastructure
okr.topic
Energy :: Electric Power
okr.topic
Energy :: Energy Finance
okr.topic
Energy :: Energy Policies & Economics
okr.topic
Energy :: Rural Energy
okr.topic
Rural Development :: Rural and Renewable Energy
okr.unit
Energy & Extractives - Sector (GEEES)

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