Mini-grids & utilities

Several men hoisting a utility pole

According to the International Energy Agency, for Africa to achieve sustainable energy for all by 2030, 40% of new connections will have to be through mini-grids. However, few mini-grid projects have been commercially successful in emerging markets because of the many challenges developers face, from gaps in policy and regulatory frameworks to difficulties accessing finance.

We offer specialized services to mini- and micro-grid project developers who are focused on building small-scale electricity generating and storage systems that connect to localized distribution networks and provide electricity to households and small businesses. 

Our support enables project developers to overcome obstacles and advance their initiatives toward financial close and commissioning. Our comprehensive guidance covers market sizing, site selection, technical system design, business model development, financial feasibility, regulatory compliance, business model design, capital equity-raising, community engagement and improved operational performance.

Utility pole near house

Utilities

In its 2022 analysis, the International Energy Agency highlights how extending national grids represents the “least costly and most prudent” option for providing electricity access to approximately 45% of people who lack it.

However, while grid expansion and densification are vital components of African governments' efforts to improve energy access in underserved rural areas, these projects often grapple with a common challenge: low demand.

Increased availability of power often does not automatically result in new connections or greater power consumption. This means the ultimate purpose of the grid investment, to promote socio-economic development, is not being realized. 

We assist utilities in their grid expansion projects by offering targeted interventions aimed at increasing power demand in newly connected communities, especially from local businesses looking to expand commercial activities and diversify services. 

By unlocking on-grid productive energy usage, utilities can achieve higher connection uptake while simultaneously reducing costs per unit of connection. This approach not only creates a more sustainable customer base for expanded grids, but also enables communities to thrive economically.


Worker drilling solar panel

Building mini-grid capacity across sub-Saharan Africa

Small-scale projects, such as mini- and micro-grids, are helping off-grid communities access clean energy. We support projects through every stage of their development, from market sizing to community engagement. We also work with the communities they serve to build the capacity of local businesses to grow and make better use of the new power supply. Part of these efforts was the creation of the Green Mini-Grid (GMG) Help Desk facility, in collaboration with the AFDB, which now serves as the sector’s de facto technical assistance and advisory portal. Through this platform we provided advisory services to over 125 developers across sub-Saharan Africa. We also developed the GMG Policy Help Desk and provided technical assistance to policymakers and regulators.

utility poles

Improving the viability of grid expansion

Over the past decade, we have developed models to boost grid-connection rates across sub-Saharan Africa. through collaborations, such as the Rural Electrification and Densification project in Tanzania. By mentoring 1,039 rural enterprises, we helped them enhance their business acumen, explore new markets, diversify offerings, and secure financing for electric tools and appliances. This facilitated business expansion, doubling energy consumption, and improving profitability by an average of 104%. Building on this success, we have designed the Post-Electrification Micro-Enterprise Development Program, blending in-person coaching with a digitally enabled mentoring platform, to be delivered in partnership with national utilities, mini-grid developers, energy tech providers, and local innovation hubs across sub-Saharan Africa.