Of the top 20 countries with extensive access to electricity via mini-grids, nearly half are located in Sub-Saharan Africa.

In the region alone, the number of installed connections almost doubled between 2019 and 2021, from 40,700 in December 2019 to more than 78,000 in December 2021.

The State of the Global Mini-Grids Market Report 2024 released today (14 August) suggests that mini-grid installations in 2024 will be around six times higher than in 2018.

This growth is particularly notable in Sub-Saharan Africa, where mini-grids are recognised as a feasible solution for electrification in remote areas.

According to the report, there are many reasons behind the mini-grid sector’s growth – from enabling policies to innovative business and financing models.

“Several governments are tailoring regulatory processes for different mini-grid scales to enhance flexibility and reduce costs,” the report reads.

“Meanwhile, cost recovery tariffs, using a cost-based formula for calculating revenue requirements, have become common in mini-grid markets, including countries like Ethiopia, Kenya, Nigeria, Tanzania and Zambia.”

Over the past decade there has been a consistent and notable upward trend in mini-grid installations globally, the report notes.

“This increase clearly indicates the growing recognition of mini-grids as a viable solution for electrification, especially in remote and underserved areas.”

For example, Seychelles and Nepal are providing mini-grid electricity to more than 5% of their population.

Renewable energy powering mini-grid development

The report also finds that mini-grids are relying on clean energy more than ever before.

The declining costs of mini-grid components, including PV modules, inverters, batteries, battery inverters and smart meters, have significantly enhanced the financial viability of mini-grid projects.

Notably, the price of solar PV panels has plummeted by approximately 90% over the past decade, driven by increased supply and technological advancements.

The report details how mini-grids are increasingly being used to power people with renewable energy, contributing to the fight against climate change while bringing life-changing electricity to communities without it.

Between 2010 and 2021 the global population lacking access to electricity was reduced by 466 million, decreasing from 1.14 billion to 675 million.

“This progress can be attributed to a combination of factors, including advancements in renewable energy technologies, increased investment in electrification projects, and international cooperation.

“However, it is important to note that the majority of these reductions occurred in regions outside Sub-Saharan Africa.

“During this period, solar energy emerged as a key driver of electrification in remote and rural areas, due to its scalability and the declining cost of the technology.”

The report says mini-grids and standalone solar systems have become the electrification approaches for delivering electricity to communities where extending the traditional grid is not economically feasible.

Additionally, policymakers worldwide have prioritised universal access to electricity, resulting in targeted initiatives to bridge the energy access gap.

Programmes that encourage mini-grid projects in Africa

The increase in mini-grid deployment in Africa has also been assisted by the Africa Development Bank’s Africa Mini-grid Acceleration Programme (AMAP) which aims to facilitate government buy-in to encourage private sector-led mini-grid development.

The UNDP’s Africa Mini-grids Programme also focuses on strengthening political will through national dialogue on mini-grid delivery models with relevant stakeholders.

However, data from the Africa Mini-grid Developers Association (AMDA) show that for a single mini-grid, the average total time to attain all licences and approvals is 58 weeks, “which makes the timely deployment of the mini-grids required to power the un-electrified populations in the global South unattainable by 2030.”

“Sector stakeholders recognise the importance of establishing portfolios with a large number of projects to achieve economies of scale and attract investment. Portfolio applications are key for scaling up the sector, given that speed of deployment is crucial for achieving universal access by 2030.”

Business uptake set to increase in 2024

The report also expects more businesses to use mini-grids this year.

“Over the past decade, the mini-grid sector has exhibited a stable pattern of customer composition, primarily comprising households, with business customers consistently representing about 15% of total connections.

“However, a notable shift is anticipated in projects planned for 2024, where the proportion of business customers is expected to rise to 27%.

“This shift aims to enhance system utilisation and improve the financial viability of these projects by incorporating more income-generating activities.”

According to the data, public institutions account for only 2% of total connections; combined with businesses they make up approximately 17% of total connections, but together are responsible for over 50% of total electricity consumption.

Accelerating the delivery of mini-grids

The report, developed by the Mini-Grids Partnership and led by Sustainable Energy for All (SEforALL) as its Secretariat, aims to raise awareness of mini-grids, mobilise investment in the mini-grid sector and serve as a benchmark to allow decision-makers to measure progress in the sector.

The Mini-Grid Funders (MGF) database and the Mini-Grid Asset (MGA) databases were analysed in order to understand key trends in the mini-grid market.

The MGF database covers over 160 projects from 14 funders in the MGF group, across over 45 countries, mainly in Africa and Asia.

These projects account for $2.4 billion of committed funding, of which $260 million has so far been deployed.

The data reported include variables such as programme duration, type of financing instruments used, total connections planned, and total funding committed and disbursed.

The MGA database includes up-to-date data from approximately 1,100 mini-grid projects currently operating across 16 countries.

“The State of the Global Mini-Grids Market Report serves as a comprehensive resource aiming to drive investment and inform decision-making in the sector,” said Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, and Co-Chair of UN-Energy.

FAQs on mini-grids

What is the concept of a mini-grid?

A mini-grid is a set of small-scale electricity generators interconnected to a distribution network that supplies electricity to a small, localised group of customers.

What is the difference between a mini-grid and a micro-grid?

Micro-grids are used by small residential or commercial consumers. Mini-grids are larger configurations which can power commercial outlets, universities, factories and even islands, according to the International Electrotechnical Commission.

What is an example of a mini-grid? 

A mini-grid can include diesel generators, hydropower systems, solar photovoltaic (PV) modules, wind turbines, biomass-powered generators, geothermal-powered generators or a mix of these.

What is the configuration of a mini-grid? 

Mini-grids can have three basic configurations: alternating current (AC) coupled, direct current (DC) coupled or hybrid (both AC and DC).

Access the State of the Global Mini-Grids Market Report 2024