Clean Energy Mini-Grid Policy Development Guide
The Clean Energy Mini-Grid Policy Development Guide, developed in partnership by ARE - ALER's partner, AMDA, INENSUS, the AfDB Green Mini-Grid Help Desk, and UNIDO - ALER’s partner, outlines the various forms and models that public-private cooperation could take and reflects on the outcomes of policy decisions on mini-grid deployment.
Mini-grids have been identified as a critical tool towards achieving universal electricity access by governments, donors 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 developed to allow the sector to scale.
Five critical conclusions may be drawn from the guide:
- Sustainable mini-grid business/delivery models require scale;
- The way in which mini-grids are ultimately deployed, including the degree of private sector involvement, depends on decisions taken by government;
- Large government control over mini-grid deployment, minimum financial subsidies and low end consumer tariffs cannot all be achieved at the same time;
- 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;
- The risk of a sudden end to the project, i.e. the termination risk, ought to be considered by policy makers and regulators.
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