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New: Clean Energy Mini-Grid Policy Development Guide

19/03/2021

Mini-grids have been identified as a critical tool towards achieving universal electricity access by governments, international funding partners and private sector actors alike. To enable the sustainable deployment of mini-grids, the public and private sector need to cooperate. Policies and regulations which support the most suitable mini-grid delivery models need to be further deployed to allow the sector to scale.

The Clean Energy Mini-Grid Policy Development Guide, developed in partnership by ARE, AMDA, UNIDO, INENSUS and the AfDB Green Mini-Grid Help Desk, outlines the various forms and models that public-private cooperation could take and reflects on the outcomes of policy decisions on mini-grid deployment.

The guide provides an overview of the most important aspects of mini-grid policy, with the aim of supporting policy makers to accelerate mini-grid deployment and enable national debates and decision making. Based on key lessons learnt from existing mini-grid policies and regulations, the guide presents a decision tree designed for policymakers to guide them through the decision-making process.

Five critical conclusions may be drawn from the guide:

  1. Sustainable mini-grid business models require scale.
  2. The way in which mini-grids are deployed, including the degree of private sector involvement, depends on decisions taken by government.
  3. Large government control over mini-grid deployment, minimum financial subsidies and low-end consumer tariffs cannot all be achieved at the same time.
  4. The development of electricity demand in rural areas is difficult to predict, making it important to introduce demand risk mitigation instruments in the policy framework.
  5. The risk of a sudden end to the project, i.e., the termination risk, ought to be considered by policy makers and regulators

The guide was launched at the 6th ARE Energy Access Investment Forum on 17th March and is a follow up to the Mini-Grid Policy Toolkit (2014).

Download the Clean Energy Mini-grid Policy Development Guide in English.

Téléchargé la Guide pour l’élaboration d’un cadre réglementaire favorable aux mini-réseaux à base d’énergie renouvelable en français.