Mini Grids Have Potential to Bring Electricity to Half a Billion People – Report

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

15 Wool Braid Hairstyles You Should Try

Wool braid hairstyles have been popular for years and show no signs of slowing down. Wool braids allow you...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
Mini Grids Have Potential to Bring Electricity to Half a Billion People - ReportMini Grids Have Potential to Bring Electricity to Half a Billion People - Report

Mini-grids, previously viewed as a niche solution, can provide electricity to as many as 500 million people by 2030, helping close the energy access gap, according to a new World Bank report. The combination of falling costs, a dramatic increase in quality of service, and enabling policies has made mini-grids a scalable option to complement grid extension and solar home systems.

Mini-Grids for Half a Billion People: Market Outlook and Handbook for Decision Makers is the most comprehensive study on mini-grids to date. It provides policymakers, investors, and developers with insights on how mini-grids can be scaled up.  It takes stock of the global market and industry, analyses costs and technological innovations, and shows the importance of microfinance and income-generating uses of electricity.

Compared with the main grid and solar home systems, mini-grids are a more viable solution for areas with high population density and medium electricity demand. Extending the main grid to serve remote communities is often prohibitively expensive. Globally, at least 19,000 mini-grids are already installed in 134 countries, representing a total investment of $28 billion and providing electricity to around 47 million people. Most are deployed in Asia, while Africa has the largest share of planned mini-grids.

At present, the total mini grid investment in countries with low levels of electricity access in Africa and Asia totals $5 billion. It is estimated that $220 billion is needed to connect 500 million people to 210,000 mini-grids in these regions by 2030. 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 public funding, for example through performance-based grants.

Read Also:  56 Countries To Participate in Festac '77 @ 40
- Advertisement -

Mini grids are now one of the core solutions for closing the energy access gap. We see great potential for mini-grid development at scale and are working with countries to actively mobilize public and private investment,” said Riccardo Puliti, Senior Director of Energy and Extractives at the World Bank. “The World Bank has been scaling up its support to mini-grids while helping countries develop comprehensive electrification programs. Our commitments to mini-grids represent about one-quarter of total investment by the public and private sector in our client countries. The Bank’s portfolio spans 37 mini-grids projects in 33 countries, with a total commitment of more than $660 million. This investment is expected to leverage an additional $1.1 billion in co-financing.”

In addition to being cost-efficient, mini-grids have many other benefits. They have positive environmental impacts: 210,000 mini-grids powered by solar energy would help avoid 1.5 billion tons of CO2 emissions globally. They also offer national utilities a win-win solution in the electricity sector by paving the way for more financially viable future grid expansion.

Read Also:  Atlantic Hall Flag-off Multi-million Naira Ultra-modern Sports Complex Construction

By the time the main grid arrives, significant demand for electricity would already exist and customers would have greater ability to pay through the generation of productive uses made possible by mini-grids.

Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

- Advertisement -
Mini Grids Have Potential to Bring Electricity to Half a Billion People - ReportMini Grids Have Potential to Bring Electricity to Half a Billion People - Report

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Mini Grids Have Potential to Bring Electricity to Half a Billion People - ReportMini Grids Have Potential to Bring Electricity to Half a Billion People - Report

Latest News

MPC Maintains Accommodative Stance…Cuts MPR to 12.50%

In a shocking turn of events, the Monetary Policy Committee (MPC) cut its key policy rate MPR by 100bps...

History Of Coca-Cola Advertising Slogans

Red, White & You (1986) Throughout the years, the slogans used in advertising for Coca-Cola have reflected not only the brand but the times. Slogans...

Dangote Cement Plc – Resilient Q1 2020 results amid early impacts of COVID-19

Dangote Cement Plc grew revenue YoY by 4% in its Q1 2020 result. Gross profit rose YoY by 3% on account of faster growth...

Q1’2020 GDP Growth Slows – Underlying economic weaknesses reflect in GDP performance

The Nigerian economy grew by 1.87% on a year-on-year (YoY) basis in Q1’20. The GDP performance represented a 23 basis points decline from the...

These Are The 6 Major Areas Of Consumption Affected By COVID-19

As many markets across the globe begin to ease living restrictions and many consumers start to take tentative steps outside their homes, the world...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Mini Grids Have Potential to Bring Electricity to Half a Billion People - ReportMini Grids Have Potential to Bring Electricity to Half a Billion People - Report