Publication date: 5 April 2022
Authors: Solar Compass/Elsevier
Description: The mini-grid market in Africa is steadily growing and solar PV, wind, hydro or biomass-powered mini-grids are expected to be a major factor in the electrification of rural areas. However, mini-grid markets cannot realize their full potential as most energy regulators do not provide an appropriate answer to the simple question “What happens when the main grid arrives?”. The lack of regulatory security of tenure and potentially subsidized tariffs for main grid-sourced electricity risk stranded investments when the main grid arrives and thus threaten private sector participation and investment.
