- The number of connected consumers is almost 300, up from 90.
- Mini-grid revenue doubles in over 18 months.
- Developer looking to double system capacity to meet growing energy demand.
Nigeria’s first commercial undergrid mini-grid (also known as an interconnected mini-grid) was deployed in Molkoloki in Ogun State in February 2020. Two years later, the installation is flourishing, providing a reliable power supply to the previously underserved community. The mini-grid system comprises a 100kWp solar PV, 194kWh battery storage, and an 88kW diesel backup generator. The hybrid solar mini-grid was borne out of a three-way partnership between the community, mini-grid developer Nayo Tropical Technology, and the Ibadan Electricity Distribution Company (IBEDC).
The undergrid mini-grid provides customers with stable electricity without overworking the DisCo’s network. Over the past 24 months, the system has generated an average of over 5,500kWh of solar energy monthly. Before the deployment of the mini-grid, only 90 customers in Mokoloki were connected to the grid. Currently, the community has about 300 connections. As a result, collection rates in the community have climbed from about 20% before the mini-grid to 100%, with every customer now metered. The mini-grid revenue has also doubled over the past 18 months, with the average user revenue in Mokoloki twice that of an average off-grid mini-grid user in Nigeria. The mini-grid operator has met 100% of its financial obligations to IBEDC, reducing the DisCos’ collection losses.
The energy reliability is leading to a surge in energy demand in the community. Commercial users are looking to expand their businesses, even as many other businesses are looking to move to Mokoloki. As a result, nearby communities have expressed interest in hosting undergrid mini-grids. Nayo Tech plans to expand the system capacity to meet these growing energy demands. To meet the growing interest in nearby communities, Nayo Tech and IBEDC are developing a pipeline of new projects expected to deploy more solar undergrids within the IBEDC franchise area.