- The World Bank researchers recommend investing $127 billion in green mini-grids for Sub-Saharan rural electrification.
- The report suggests electrification methods for half a billion people in developing countries.
The World Bank releases a new report that guides how to use green mini-grids as a lever in the electrification process in developing countries, particularly in sub-Saharan Africa. The World Bank’s Energy Sector Management Assistance Program (ESMAP) produced the report. According to the report, investing $127 billion in green mini-grids could electrify 490 million people by 2030.
According to the International Energy Agency, 733 million people worldwide do not currently have access to electricity, with 570 million living in Africa (IEA). The Covid-19 health issue and other factors have contributed to a considerable slowdown in the implementation of solar mini-grids in recent years.
The analysis warns that just 44 800 installations would be constructed, servicing 80 million people by 2030 if public and private investors maintained the current level of mini-grid development. As many as 217,000 mini-grids might be installed in underdeveloped nations, with the mobilization of $127 billion over the following eight years.
The World Bank encourages implementing deployment strategies and programs, especially in Africa. However, the international financial institution only targets comprehensive electrification programmes. As a result, according to the bank, it has only committed $1.4 billion to develop projects in 30 different nations. For instance, the World Bank funded the Nigerian Electrification Project (NEP). The Rural Electrification Agency (REA) offers performance-based grants (PBG) to solar mini-grid suppliers as part of this programme.