Presentation is loading. Please wait.

Presentation is loading. Please wait.

Conditions for viability of minigrids

Similar presentations


Presentation on theme: "Conditions for viability of minigrids"— Presentation transcript:

1 Conditions for viability of minigrids
Rwanda i. Policy -Have a rural electrification strategy --Identified areas for minigrids based on resource availability and population Business Model: Financing: Grant funding, or Results Based financing (NGOs), [Rwanda to explain further concession loans mobilised by govt which are administered by a bank at low interest rates Not sustainable, needs additional support Tariff not clearly defined Subsidise in form of exemption of duty, vat etc ---No clear tariff mechanism (paid according to appliances, number rooms etc) Malawi Policy -an Energy policy, a RE policy and a Rural EMP exist which form the basic framework for minigrids -There 6 solar and wind hybrid minigrids were not sustainable while the (100kW) mini hydro has been successful

2 Malawi Business model --the Hybrids were funded by govt and no tariff paid by community, and hydro funded by a undp grant --Tariff group into 3: Domestic 8c/kWh; Social 4c/kWh; Business 14c/kwh --Subsidy was for capex SUDAN *selected an off-grid area far from grid; Areas not in the grid extension plan for next 25yrs *The project has SHS and solar kits with a prepaid metering system, *Other off-grid productivity projects e.g. Solar water pumping for irrigation exist; **tariff is based on cost recovery basis without profits *The off-grid in towns has commercial tariff -soft loan from banks, user chooses size of system, monthly rental tariffs only cover capex costs and transaction costs of bank --Success factor based on involvement of banks and productivity model

3 Mauritius -No policy framework for off-grid electricity becoz smaller distances -Developers and promoters not happy with lack of off-grid framework -developers share grid extension costs with govt Ethiopia Policy -Off-grid issues covered in the general Energy Policy -there is a general guideline on electrification -The Rural Energy Master Plan exists but not regularly updated to reflect situation on the ground: often the grid extension overlaps into off-grid project sites Business models -Development bank offers loans for minigrids but prefer for SHS projects becoz of the overlap stated above -tariff set by regulator at cost recovery plus profit -3 minigrids, Private, govt and NGO funded are in operation -there exists cross subsidy for diesel based minigrid operated by utility Burundi -Theres an Energy Policy for all energy forms -Has a Rural Electrification Agency for Rural areas: The utility takes care of urban electrification -REA for rural grid and off grid projects -REA has 6 microhydro minigrids

4 Burundi -Challenge is there's a rural and urban tariff: The regulator is planning to harmonised the tariffs -Business -funded by ARAB bank thru a grant Zimbabwe Policy -Energy Policy and Rural Electrification Act exist -The Rural electrification agency is funded thru a 6% levy on electricity bills and grants from govt, and ZERA -Rural Energy Master Plan is being developed. The Masterplan demarcates areas/zones for Grid and off-grid electrification in the next 25 years Business model: -Minigrids were funded by private players and also funded by Development Agencies, NGOs -Two mini-hydros have commercial rates which are above the utility tariff -A 100kW Solar minigrid has different tariffs for Social and business enterprises -Subsidies in form of exemption of duty on importation of capital equipment

5 Madagascar -Energy Policy exists; -Have a Rural Electrification Agency funded from electricity bills Business models -hydro, solar, wind, biomass minigrids exists -Govt gives up to 70% capex subside to developer thru the Rural Electrification Agency -Development agencies (EU, GIZ and others) also fund projects -Govt helps fund transmission network -regulator sets tariff often higher than grid tariffs Swaziland Policy: Electricity Act, Renewable Energy and IPP policy that speaks to electricity access by mini-grids Rural Electrification program in the Ministry which has achieved a 67% rural electrification -Most off-grid systems are stand alone solar systems by private home owners -minigrids are suitable for sparsely distributed rural settlements

6 Remarks Tariffs (social, business and domestic) for minigrids need to be cleared defined Community needs to pay reasonable tariffs for sustainability off-grid projects Success factor is based on involvement of financial institutions and productivity models Often the main grid encroaches into mini-grid sites which is not good for private developers. This needs to be clarified in the Rural Energy master plan


Download ppt "Conditions for viability of minigrids"

Similar presentations


Ads by Google