Mini-grid

A modern mini-grid may include renewable- and fossil fuel-based power generation, energy storage, and load control.

[11] These systems are typically small and isolated, powered by diesel or hydropower, and built by local communities or entrepreneurs primarily to provide rural households with access to electricity, especially in areas not yet served by the main grid.

[14] Mini-grids are a cost-effective and timely solution for more isolated areas in which connection to the main electric grid is unavailable, and represent a practical option for meeting the energy demand in Sub-Saharan Africa, South and East Asia, and Small Island Developing States.

[3] Because a grid must balance the supply of energy with the demand, the mini-grid's larger size and flexibility allows for safer and more affordable power.

Most solar mini grids are hybridized with a diesel generator that provides backup power in the event of extended cloudy periods.

[18] Where suitable sites allow, small scale hydroelectricity (micro- or mini-hydropower) provide cost-effective 24-hour a day electricity generation.

In areas where windspeeds are consistently high and/or sunlight is very restricted seasonally, wind is used to power mini grids, often in a hybrid configuration with solar or diesel or both.

In renewable energy mini-grids, storage plays a crucial role by balancing the intermittency of sources like solar and wind, ensuring a consistent and reliable supply of electricity, especially during periods when generation is low or demand is high.

If a feeder in the distribution system is longer than roughly 1 km in distance, then it is generally necessary to use transformers to step up the electricity to medium voltage (35 kV or below) to reduce ohmic losses.

Pre-pay meters are more common and work like pre-paid phone plans, automatically disconnecting customes when the amount of purchased electricity is consumed.

The use of mini-grids also decreases the amount of time the generators are run at low loads thereby increasing efficiency of the entire system.

[23] An additional benefit mini-grids provide is that they do no require a traditional fuel source as many larger scale electric grids do.

First, deployment of mini-grids in rural unelectrified areas circumvents the high costs and logistical challenges associated with extending national grid infrastructure to these regions.

Third, by providing reliable electricity, mini-grids stimulate economic growth in rural areas, fostering small businesses and industries, which in turn can increase local income levels.

[23] For instance, a study on solar mini-grids in Kenya and Nigeria showed a significant increase in productivity and economic activity.

The median income of rural Kenyan community members quadrupled, and business establishments reported an increase in operational hours, expansion in products and services, and hiring more employees.

Additionally, mini-grids led to a shift from hazardous energy sources like kerosene lamps to safer, more reliable electricity, further enhancing economic stability and health in these communities.

[4] The UNFCCC estimates that every megawatt-hour of electricity delivered to customers of mini-grids saves between 0.8 and 2.72 tons of carbon dioxide equivalent from being released into the atmosphere.

[23] For example, a study in Kenya and Nigeria showed that local health clinics connected to mini-grids reported significant improvements in service delivery, including enhanced refrigeration for vaccines and medicines and the ability to treat more patients with extended operational hours.

This not only improved healthcare access but also reduced reliance on hazardous energy sources like kerosene lamps, which pose health risks.

The introduction of mini-grids also positively impacted education, with increased school enrollment and improved academic performance due to extended study hours enabled by reliable lighting.

This shift contributes to greater gender equality and empowers women with more opportunities for economic participation and decision-making in their communities.

It is often difficult to estimate the load size, growth, and schedule which can lead to the system running with lower efficiency and higher cost.

This is a risk that exists with any type of grid, however the regions where mini-grids are typically used are poor rural areas with less access to maintenance services so the effects are exacerbated.

[23] Due to the remote and underdeveloped locations where mini-grids are typically implemented, it is difficult to transport supplies and skilled personnel to the areas they are needed.

[23] Implementing a mini-grid into a community takes meticulous planning and cooperation between the people living in the area as well as the technicians installing the devices.

Mini grids that are currently being planned are expected to bring electricity to an additional 35 million people, mostly in Sub-Saharan Africa.

To reach universal electricity access by 2030, 490 million people will be served at least cost by 217,000 mini grids requiring an investment of $127 billion.

[4] Mini grid developer Husk Power projects a similar decrease in LCOE is possible, reducing to $0.20 per kWh by 2030 if the mini grid industry is able to adopt of sustainable business models at site and portfolio levels with cost, quality of service and demand shaping projects rollout.

The World Bank has identified ten: 1) reducing costs and optimizing design & innovation for solar mini grids; (2) planning national strategies and developer portfolios with geospatial analysis and digital platforms; (3) transforming productive livelihoods and improving business viability; (4) engaging communities as valued customers; (5) delivering services through local and international companies and utilities; (6) financing solar mini grid portfolios and end user appliances; (7) attracting exceptional talent and scaling skills development; (8) supporting institutions, delivery models, and champions that create opportunities; (9) enacting regulations and policies that empower mini grid companies and customers; and (10) cutting red tape for a dynamic business environment.