Report: Solar Mini-grids Industry Needs 10 Times Current Scale to Achieve Universal Energy Access

Emmanuel Addeh in Abuja

A new industry roadmap for mini-grids developers has indicated that the industry will need to ramp up its current production scale by at least 10 times to achieve its planned energy access in the coming years.

The roadmap by Husk Power Systems for mini-grid developers outlined a framework for growth and commercial viability for the emerging markets, as well as detailed metrics for achieving scale and sustainability.

Mini-grids have been identified by the World Bank as the most cost effective and quickest way to provide modern electricity for nearly 500 million people, most of them in Sub-Saharan Africa.

Yet the industry has yet to fully scale to its optimal capacity, with only 10 per cent of the needed 200,000 micro-grids currently in operation.

 “The new industry roadmap clearly outlines actions needed from private sector companies to realise the full potential of solar mini-grids. Policy and finance actions are also needed, such as embedding mini-grids into national electrification plans and devising financing solutions more suitable for large portfolios of smaller projects,” the report said.

Industry roadmaps have proven instrumental for other industries in driving targeted investment and innovation that lead to scale, but the mini-grids industry has never had one to guide unified action based on a commonly agreed upon set of targets and metrics, according to Husk.

“An industry roadmap fills that gap, and identifies the key characteristics for sustainability and scale. It also selects the appropriate metrics and timelines for scale, which if met will ensure the achievement of Sustainable Development Goal 7 (SDG7) – access to modern, affordable, reliable and sustainable energy for all by 2030.

“The roadmap received input from more than a dozen leading institutions, including development banks, private sector trade groups, academics, think tanks and multilateral agencies,” it stated.

In spite of the urgent need, the mini-grids industry,  has yet to produce a profitable company, said the roadmap’s lead author Brad Mattson, who is chairman of Husk Power and board member of the Africa Mini-grid Developers Association (AMDA).