The 63rd power dialogue was centred around discussions in ensuring the sustainability of mini-grid deployment. In recent times, mini-grids have become a cost-effective option for the electrification of communities across Africa. As a result, the adoption of off-grid technologies is set to rapidly increase over the next couple of years.
In Nigeria, grid-connected generation capacities have stalled for the past couple of years; this inadequacy has significantly accelerated mini-grid deployments across the country, with an estimated 38 solar PV mini-grids with a cumulative capacity of 1,210.8kW.
Initiatives Employed in Ensuring Mini-grid Sustainability
Mini-grid developers have made some initiatives in Nigeria to ensure its sustainability. Hasana Bello Aliyu, Vice President Operations, Konexa Solutions, stated that to ensure the sustainable use of mini-grid systems, the company has several pilot initiatives such as demand stimulation. Here, businesses operating within their mini-grids have been provided with finance to purchase appliances like refrigerators and grinding machines to boost energy demand and provide a means of generating income to pay for the energy utilised.
On the residential end, she mentioned that the company is looking into the payment pattern of residential customers for a given period to decipher each customer’s creditworthiness before providing residential energy solutions.
How can Mini-Grid Projects be Sustainable?
On the sustainability of mini-grid projects, obtaining a suitable business model is essential. In addition, mini-grid developers have to properly assess the receiving community’s energy needs and garner adequate demand-side data and energy consumption levels before deploying any mini-grid technology.
Furthermore, at the dialogue, Uche Honnah, the component coordinator for solar mini-grids for the Nigeria Electrification Project, highlighted some of the programs currently being organised by the Rural Electrification Agency (REA) to provide sustainable and affordable energy solutions to communities. For example, the Minimum Subsidy Tender aims to electrify communities with the most economic growth potential through a competitive tender and Performance-Based Grants targeted at mini-grid developers with the most viable and sustainable energy solution.
Finally, a significant step in ensuring the sustainability of mini-grid projects has been heightened by the collaboration between the Nigeria Electricity Regulatory Commission (NERC) and Rural Electrification Agency (REA) to regulate the tariffs provided by energy developers.
In case you missed the dialogue, here is a link to stream the video.