Page 18 - Apmor 2018

energy commentary

THE POWER OF

MINI-GRIDS

By Strive Masiyiwa and Richard Branson
Strive Masiyiwa Richard Branson

espite impressive economic grids to help address Africa’s energy challenge potential of mini-grids to help expand energy
development in recent years, Africa still has yet to be tapped. Reliance on mini-grids access?
Dlags far behind on energy, with almost is expanding more slowly than in other world As recent experience in the United States has
two-thirds of the continent’s citizens lacking regions, with Africa being more likely to shown, early adoption of technical innovations,
access to electricity. implement off-grid systems. particularly of digital management tools, could
enable mini-grid business models to become
While getting more power to the people is One obstacle is the lack of proven commercial
an important goal, extending electricity grids business models and adequate and appropriate more cost-efficient. New technologies could
is expensive and slow. Meanwhile, off-grid forms of financing. Another is that policy even enable mini-grid providers to develop
options may not be sufficient to meet people’s frameworks often are not accommodating. entirely new organisational models for
energy needs. Fortunately, there is a third And many developers and operators lack the electricity systems that are more effective and
approach that can help fill in the gaps: mini- requisite knowledge and experience. resilient than the conventional utility-based
grids. The situation is ripe for change. With the approach.
Mini-grids are essentially localised electricity United Nations sustainable development Experience in the US, as well as in Asia, also
networks that supply several users, whether agenda ambitiously targeting universal underscores the importance of favourable
households or businesses. They can be grid- access to energy by 2030, policymakers are government policy and regulations, including
connected, but they do not have to be. And, as paying more attention to electrification, and capital subsidies.
a new report from the Africa Progress Panel (of development-finance institutions and partners The challenge, of course, will be for each
which one of the authors is a member) shows are making more funding available. African government to design a mini-grid
- and as another report by the Rocky Mountain Meanwhile, the cost of renewable energy is strategy around the options and models that
Institute underscores - mini-grids are an falling; energy efficiency is improving, both for work locally. That means setting appropriate
important piece of Africa’s energy puzzle. tariffs and establishing a coherent framework
generating equipment and for the machines
Mini-grids can have a major competitive to be powered; and innovative digital of technical, financial, and procedural
advantage over grid extension in rural and technologies are facilitating the management regulations. It also requires building up the
remote areas, because they can provide of electricity services. necessary skills and capacities in the labour
electricity more quickly and at much lower A flexible solution like mini-grids is well suited force.
cost. Because mini-grids require less capital to this context. As it stands, mini-grids in Africa In developing their electricity systems, most
investment than grid expansion, it can be are mostly diesel or hydropower systems. Yet African countries will have to consider and
easier to secure financing for them, meaning mini-grids can - and increasingly do -take the combine many different models and options.
that they can electrify communities that might form of solar PV and hybrid systems, with For many, mini-grids can play an important role.
have to wait years for a grid connection. hybrid systems being particularly promising. If African governments embrace diversity in the
Mini-grids also have a distinct advantage over Diesel systems face the risk of fuel-supply way electricity is generated and distributed,
off-grid systems: greater power generation. disruptions or cost increases, while renewable- they could provide modern energy to millions
Productivity-enhancing farm machinery, for energy generation can vary according to of people, while placing the continent at the
example, usually requires more power than weather and season. Hybrid systems that forefront of a global energy transformation.
off-grid household systems can provide. combine diesel with solar or wind power
Moreover, mini-grids can be used to increase mitigate these risks. Strive Masiyiwa, is a member of the
the resilience of existing electricity systems. Mini-grids are flexible in other ways, too. Mini- Africa Progress Panel, the founder
Power cuts on the main grid can affect a large grids may or may not be connected to the and chairman of Econet Wireless
number of businesses and households, and it national grid. They can be operated privately, Richard Branson, is the founder
can be difficult to restore services quickly. Mini- by utilities, on a community basis, or according
grids can ensure that consumers retain access to a public-private model. And they can sell of the Virgin Group, and a
to power when the grid suffers interruptions. electricity to retail consumers, utilities, or both. philanthropist.
Despite these benefits, the potential of mini
So how can African governments use the

18 | AFRICAN POWER Mining & Oil Review Vol 21, Issue 20, 2017