Repurpose of abandoned mini-grids in rural areas: Analysis of potential strategies

Abstract

Electricity access remains a major challenge in rural areas of low- and middle-income countries, where traditional grid extension is impractical. Mini-grids are a key off-grid alternative, but their implementation is hampered by early abandonment. This leads to stranded assets, ineffective use of public funds, and reduced investment in rural electrification. This study aims to identify strategies for repurposing abandoned mini-grids. Through a qualitative assessment of abandoned cases, technical failure and main grid arrival were identified as the primary reasons behind this issue. While technical failure must be addressed through preventive measures to avoid interruptions in electricity supply, repurposing strategies can enhance the use of abandoned assets after grid encroachment. An economic analysis of two case studies—a 15 kW micro-hydro power (MHP) mini-grid in Nepal and a 50 kWp solar photovoltaic (PV) mini-grid in Mali—revealed that the viability of these strategies is context-specific. This was complemented by a sensitivity analysis of key parameters. In Nepal, the current situation does not encourage the repurposing of small-scale mini-grids, having a maximum Levelized Profit of Electricity (LPOE) of 0.13 €ct/kWh for post-interconnection. In other scenarios, green hydrogen production reaches an LPOE of up to 10.32 €ct/kWh under favourable investment costs and hydrogen price conditions. In Mali, post-interconnection options are cost-effective due to the tariff levels and low interconnection costs, with a current LPOE of 5.09 €ct/kWh and a maximum value of 8.80 €ct/kWh. These findings underscore the importance of national policies and regulatory frameworks in supporting the repurposing of mini-grids.