RenewableS 2013 GlObal STaTUS RePORT - REN21

05 RURAL RENEWABLE ENERGY
Sidebar 8. Innovating Energy Systems: Mini-Grid Policy Toolkit
Mini-grids are power solutions for isolated sites, such as islands
and towns in remote mountainous or forested areas, where
the grid cannot easily reach and where “stand-alone” power
systems are not technically or economically viable. They are
different from stand-alone solar PV or wind systems because
they are larger in capacity (up to 1 MW), serve entire communities
through distribution networks (instead of individual sites),
and often incorporate a number of technologies (e.g., hybrid
generator-wind-PV systems). They are expandable and can be
managed by community groups or small businesses. When the
national grid does reach an area, they can be connected to it.
There are several types of mini-grids. For example:
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Inverter-connected mini-grids incorporate a variety of
technologies (solar PV, wind, diesel, battery banks) and
range in size from 2 kW to over 300 kW. This is a rapidly
developing field.
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Hydro/pico-hydro mini-grids are mature technologies used
by remote missions, tea factories, and small communities.
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Gas-fired generator mini-grids powered by agricultural waste
or biogas are maturing technologies, often used commercially
by sugar and timber industries.
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Diesel-powered mini-grids were, until recently, the most
common option. Cost and environmental concerns,
however, have forced project developers to reconsider diesel
generation as a “first” solution.
Attention to mini-grids has risen for a variety of reasons.
Extending national power grids to remote communities is
expensive, and electricity demand in rural areas may prove
too low to cover such costs. While petroleum-based generator
costs are increasing, mini-grid costs have fallen dramatically
with price reductions in solar, wind, inverter, gasification, and
metering technologies. Today, “intelligent” community minigrids
can automatically measure power use, bill customers, and
provide management data online to system operators. Further,
the demand for efficient, low-carbon technologies is at an alltime
high, and rural electrification programmes are increasingly
demanding green solutions.
For mini-grids to make sense, there usually must be potential
for economic activity in the target community or some type of
anchor load that can cover investment costs (these include
telecom base stations, agricultural processing, and battery
charging). There also must be a minimum population density
and power demand from consumers; otherwise, stand-alone PV
or generator systems tend to be better choices.
Mini-grids have been in use as long as hydro and diesel power
generation technologies have been available. Hydro-based
community mini-grids are common in Asia; in Africa, they were
more widespread before the 1960s, when the focus shifted
to large power-grid projects. Diesel mini-grids remain a “first”
choice for isolated community electrification all over Africa.
Recently, countries like Rwanda and Uganda have adopted
strong small-scale hydro programmes. Island or remotely
located sugar and lumber plantations often run biomass-waste
mini-grid systems for operations and employee housing. Since
2005, use of solar PV/battery and inverter technology in remote
communities has increased rapidly: for example, scores of solar
mini-grids have been installed in West Africa by rural energy
agencies.
Still, important barriers to wider use remain. First, poor understanding
of mini-grid technology and a lack of experience with
business models often causes decision makers to select more
“traditional” solutions rather than “risky” un-proven solutions.
Second, both unrealistic grid extension plans and a general
unwillingness to invest off-grid stifle more appropriate investments
in mini-grids. Third, the large upfront costs associated
with mini-grid solutions, combined with business-as-usual
support for diesel fuel, reduce investment in new solutions.
The “Mini-Grid Policy Toolkit” project i is increasing awareness
of the potential offered by mini-grids, resolving common
misperceptions, presenting lessons learned, and providing
recommendations for senior policymakers and their advisors
towards an increased adoption of renewable- and hybrid-based
mini-grids into energy planning and policy.
The “Innovating Energy Systems” sidebar is a regular feature
of the Global Status Report that focuses on advances in energy
systems related to renewable energy integration and system
transformation.
i The project is overseen by the Alliance for Rural Electrification (ARE), Energy Initiative Partnership Dialogue Facility (EUEI PDF), and REN21, and is being
produced by African Solar Designs and MARGE. For more information please visit www.minigridpolicytoolkit.euei-pdf.org
Source: See Endnote 9 for this section.
energy is becoming increasingly popular where resources
are available. It is highly competitive for electricity generation
in countries with readily accessible high-temperature steam
resources; for heat production from low-temperature sources;
and for cascading heat ii from higher temperature applications. 11
Small-scale electricity installations are not yet competitive, but
a few countries, including Ecuador and Kenya, have increased
R&D funding in an effort to reduce costs. 12
Solar thermal technologies are mature, reliable, accessible, and
economically competitive, and they offer enormous potential
for heating and cooling for residential and commercial needs
as well as industrial processes. They are used widely for water
heating, particularly in rural and urban China, and they offer
significant potential for other developing countries. 13
ii Cascading heat is a process by which heat surplus from a higher-temperature process is used to perform successive tasks requiring lower and lower
temperatures.
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