Off-grid solar mini-grids light up Africa

For the past two decades, many rural homes in Africa have relied on solar home systems to meet their basic power needs such as a few light bulbs, charging the family’s mobile phones and powering small appliances like radios and televisions. 

Now, larger off-grid systems known as mini-grids (MGs) capable of powering bigger appliances — fridges, flour and maize mills and even welding equipment — are increasingly being installed in rural areas.

“The mini-grid space continues to attract a lot of attention from development partners,” said the Africa Solar Industry Association in its latest analysis. “There are already many MGs in operation, and many more to come.” 

The recent commissioning of more than 60 solar-powered mini-grids in the Kolda region of southern Senegal is just one example. 

The Senegalese Rural Electrification Agency project targets the provision of mini-grids to more than 300 villages by 2024. The mini-grids have the capacity to power street lights, refrigerators, millet and peanut shelling machines and water pumps.

In March, the African Development Bank (AfDB) Group approved a $28.49 million grant to help the Ghanaian government install 35 solar mini-grids to power 400 schools, 200 health centres and 100 community energy service systems.

The AfDB is supporting similar projects in Madagascar, Kenya, Tanzania and Niger through its Climate Investment Funds under its Scaling Up Renewable Energy in Low-Income Countries programme.

Mini-grid initiatives are increasingly being led by private investors. In the Democratic Republic of the Congo, electricity access provider Nuru Sasu has begun courting international investors to help it develop a larger solar mini-grid project with a 35 megawatt peak capacity, targeting a population of 230 000.

Already, the energy firm has received a$1.5 million investment from a consortium of international investors to develop installed capacity of 13.7MW in the country’s three cities of Goma, Kindu and Bunia. 

“Nuru is delighted to have partners like REPP, Proparco and E3 Capital giving us the means to provide life-changing energy access in an extremely challenging environment,” said Nuru’s co-founder and chief executive, Jonathan Shaw.

In January, a Madagascar renewable energy firm, WeLight, received €‎19 million from a consortium of foreign investors, including the multilateral European Investment Bank (EIB), to support a$30 million solar mini-grid project.

The project targets a population of about 250 000 in 120 villages that will see WeLight double its coverage area in the country from eight to 17 regions.

“This project continues the EIB’s longstanding backing of off-grid solar energy in rural Africa, following successful projects in Benin, Chad, the Comoro Islands, Mozambique and Uganda,” said EIB vice-president Ambroise Fayolle in a statement.

To date, WeLight operates 40 villages in Madagascar and Mali, with plans to be present in four African countries by 2023, according to its website. “WeLight aims to replicate this approach on more than 200 new sites by 2023.”

Kenyan financial service firm CrossBoundary Energy Access and France’s Engie Energy Access plan to invest$60 million to reach a population of 150 000 in Nigeria, indicating that investment deals are now also multi-regional.

Also in March, the United Nations Development Programme announced the extension of its African Mini-Grid Programme to Burkina Faso with an investment of €1.6 million towards the development of solar mini-grids over the next four years.

The initiative, already launched in Somalia and Nigeria, targets far-flung areas of 21 African countries.

In February, Kenya announced plans to set up 136 solar mini-grids as part of WorldBank’s$150 million programme.

Kenya’s energy cabinet secretary, Davis Chirchir, said the country has 62 fully operational mini-grids and 28 others still under construction that will help the country achieve universal access to electricity by 2030.

The Rural Electrification Agency of Nigeria also recently announced plans to add 51 hybrid mini-grids following the successful installation of 12 solar-mini grids in rural areas.

In November 2021, Nigerian energy firm HUSK Power announced plans to put up more than 100 solar mini-grids by 2023 and 500 by 2026 in the country.

The World Bank has acknowledged the acceleration of mini-grids and is looking to ensure the trend continues.

The authors of a report, Mini-grids for Half a Billion People: Market Outlook and Handbook for Decision Makers, said: “This is the result of falling costs of key components, the introduction of new digital solutions, a large and expanding cohort of highly capable mini-grid developers and growing economies of scale.” 

Although mini-grids are on track to provide the least power access cost — $0.20 a kilowatt hour by 2030 —  installation needs to be accelerated if all of Africa’s rural areas are to receive electricity.

The World Bank points out that current rates will only see 12 000 new mini-grids installed by 2030, reaching only 46 million people at a cost of$9 billion dollars.

The handbook projects that more than 160 000 mini-grids are needed at the cost of$91 billion, to connect 380 million people in Africa. — bird story agency