The Role of Mini-grids in Rural Electrification Programmes in Africa and beyond: “The State of Art Paper”

Abstract

During the last two decades, there has been an outcry on how the shortage of power in rural areas can be sorted. Most Developed Countries (MDCs) like the USA, China, German, UK, Taiwan, and Singapore started using renewable energy sources to minimize power shortages in rural areas. Less Developed Countries (LDCs) mostly African countries also followed suit. This was not only to solve the power problem but also to be on the safe side after researches anticipated that in the near future, fossil fuels would be depleted. Over 50 years ago, several countries have attempted to harness power using hydro-power, biomass, solar, tidal, wave thermal, and wind energies. Different researches show that hydro-power has been most developed worldwide due to high levels of investment. Of recent, solar and biomass energies have come on board steadily, gaining trust from people. This still has benefited towns' more than rural areas due to transmission barriers, expected financial returns, and high cost of maintenance. Recently, there has been encouragement and development of solar PV systems and the utilization of mini-grids for rural electrification to minimize the challenge, especially in African countries. International Energy Agency (IEA) has high expectations in mini-grids in playing a significant role in rural electrification. Mini-grid energy solutions are emerging as the next best alternative to rural electricity access coming between the option of large-scale grid extension and solar home systems. This paper, therefore, has discussed the status, Strengths, Weaknesses, Opportunities and Threats (SWOT) strategies, financing options, risk management systems and current trends in renewable energy mini-grid development in Africa and beyond in an attempt to enhance rural electrification. This research used secondary data, internet resources, published data, and World Bank reports to synthesize the evolution and the update status of mini-grids.