Globally about 770 million people lack access to stable and efficient electricity. The deficit is more pronounced in regions such as Africa and Asia. Accessing power from the centralised grid has been a challenge for many countries in these regions hence the deployment of solar mini-grids in unserved communities to provide energy. However, research shows that closing energy access gaps will require much more than installing single-unit energy systems.
A decentralised energy system involves aggregating small-scale energy-generating structures close to consumption sites. The generating infrastructure could be standalone solar systems or mini-grids connected through a network to distribute energy. This forms a network of energy systems referred to as micro-grids.
This technology is rapidly gaining traction. The International Energy Agency (IEA) predicts that microgrids will electrify 80,000 persons by 2040. Microgrids can address all market fragments from peri-urban regions with medium to high energy consumption to standalone rural households with low energy demands.
How microgrids work?
Like a centralised grid that connects homes, businesses and other buildings to a central power source, a microgrid connects several generations and consumption units. However, unlike a centralised power that depends solely on the grid, a microgrid can operate individually, independent of other generating sets. A microgrid can function with power from distributed generators, batteries, and renewable resources like solar panels. Depending on how it is energised, and its requirements are managed, a microgrid might run indefinitely.
A case of microgrids in Nigeria
Due to the potential and benefits of microgrids in aggregating energy demand and reducing energy waste, several renewable energy developers are deploying this technology to accelerate last-mile energy access. Husk power systems is an example of a developer utilising this solution. In 2021, the firm rolled out six new microgrids in Northern Nigeria under the Nigeria Electrification Project (NEP), supported by the World Bank. The system was designed to generate power for 5,000 households and 500 businesses.
The NEP saw its first solar microgrid installed two years ago. Since then, some 359 private sector-led solar microgrid projects have been launched, potentially providing electricity to 1.1 million people.
Microgrids are without doubt the future of electric connectivity and have the potential to fast-track global electrification efforts.