Mini-grid policy directions for decentralized smart energy models in Sub-Saharan Africa

Abstract

Over one billion people are living in the dark and the majority of those who lack access to electricity reside in Sub Saharan African (SSA). In several areas of the region, it is cheaper to deploy decentralized generation systems as compared to extending the grid. The justification for these smart energy systems can be made on the basis of the available energy resources that are spread throughout SSA. Since the rural areas are remote and scattered, the deployment of suitable mini-grid generation projects can increase electrification rates. However, there is low private sector participation that may be attributed to the lack of comprehensive policies. This paper seeks to investigate current policies for mini-grid projects across SSA, in order to develop further guidelines for rural electrification. In order to engage investors as well as local entrepreneurs, mini-grid policy makers may use this development scheme to increase private sector participation.