Mini-grid Policy Toolkit - Revision history

Fernanda Wynter: /* Overview */

2021-08-24T07:47:40Z

Overview

Ranisha at 06:41, 15 May 2018

2018-05-15T06:41:15Z

Ranisha: /* Further Information */

2018-01-18T14:16:31Z

Further Information

Ranisha at 12:58, 13 October 2016

2016-10-13T12:58:24Z

Cesar Patino: /* Further Information */

2016-10-13T12:21:09Z

Further Information

Cesar Patino: /* Further Information */

2016-10-13T12:20:15Z

Further Information

Cesar Patino: /* Case Studies */

2016-10-13T12:16:43Z

Case Studies

Cesar Patino at 12:57, 10 October 2016

2016-10-10T12:57:16Z

Cesar Patino: /* Case Studies */

2016-10-10T11:51:24Z

Case Studies

Cesar Patino: /* Further Information */

2016-10-10T11:40:00Z

Further Information

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 = Overview<br/> =
 Africa has progressed in building its energy infrastructure. However, according to the [http://www.worldenergyoutlook.org/ World Energy Outlook], 22 million people in Sub-Saharan Africa live without access to electricity. Extension of national grids is only viable to a certain extent considering geography and technology. Mini-grids, isolated networks, have become a viable alternative to advancing national grids – thanks to recent technological developments. Thus, mini-grids can contribute significantly to meeting the growing energy needs. Yet, only very few such mini grids have been deployed in Africa so far.<br/>
-The EU Energy Initiative-Partnership Dialogue Facility ([http://www.euei-pdf.org/ EUEI-PDF]) together with the Alliance for Rural Electrification ([http://www.ruralelec.org/ ARE]) and [http://www.ren21.net/ REN 21] published the '''[http://euei-pdf.org/thematic-studies/mini-grid-policy-toolkit Mini-grid Policy Toolkit]''' ("Policy and Business Frameworks for Successful Mini-grid Roll-outs”) to provide guidance on how African policy-makers can develop a sustainable mini-grid policy. The goal of the '''Mini-grid Policy Toolkit''' is to foster electricity access as well as economic activity based on secure and ideally clean electricity over the long-term. It presents&nbsp;insights into operational models,&nbsp;economics and financing aspects of mini-grids, as well as an overview of relevant stakeholders. The Toolkit also opens up the discussion of mini-grids deployment for rural electrification from a business point of view: it clearly links the different operator models and the respective financial issues and required policies and regulations. It thereby sheds light on the specific requirements for deploying the operator models, and provides hands-on guidance on how to meet them. Furthermore, it provides guidance for the process of designing and implementing mini-grid policy and the regulation framework, sources and links for further reading as well as case studies illustrating practical experiences.<br/>
+The EU Energy Initiative-Partnership Dialogue Facility ([http://www.euei-pdf.org/ EUEI-PDF]) together with the Alliance for Rural Electrification ([http://www.ruralelec.org/ ARE]) and [http://www.ren21.net/ REN 21] published the '''[https://www.ren21.net/2014-mini-grid-policy-toolkit/ Mini-grid Policy Toolkit]''' ("Policy and Business Frameworks for Successful Mini-grid Roll-outs”) to provide guidance on how African policy-makers can develop a sustainable mini-grid policy. The goal of the '''Mini-grid Policy Toolkit''' is to foster electricity access as well as economic activity based on secure and ideally clean electricity over the long-term. It presents&nbsp;insights into operational models,&nbsp;economics and financing aspects of mini-grids, as well as an overview of relevant stakeholders. The Toolkit also opens up the discussion of mini-grids deployment for rural electrification from a business point of view: it clearly links the different operator models and the respective financial issues and required policies and regulations. It thereby sheds light on the specific requirements for deploying the operator models, and provides hands-on guidance on how to meet them. Furthermore, it provides guidance for the process of designing and implementing mini-grid policy and the regulation framework, sources and links for further reading as well as case studies illustrating practical experiences.<br/>
 Next to the publication the Mini-grid Policy Toolkit also makes available useful [http://www.minigridpolicytoolkit.euei-pdf.org/support-tools support tools]&nbsp;for desiging mini-grids on its website, such as a financing tool.<br/><br/>
 = Problem<br/> =

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 = Overview<br/> =
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 <br/>
-*<span lang="en-us">'''In [[Tanzania Energy Situation|Tanzania]], '''the Rural Energy Agency has founded the Tanzania Energy Development and Access Project (TEDAP), which acts as a financial intermediary and distributes funds of the World Bank to grid-tied and mini-grid projects. Such projects benefit from subsidies, preferential interest rates and technical assistance. TEDAP was set up to support projects in their first stages and does so by paying a fixed amount in form of a matching grant or payments of up to 80% of the transmission and distribution costs. In the year 2010, there were 17 MW of off-grid projects based on renewable energies installed, planned or were in process.</span><br/>A further example from Tansania is a project by [[Biomass Mini-Grids for Palm Oil Producing Communities|Camco Advisory Services]] installing 50 agro-processing centers and village mini-grids capable of producing between 10 and 50kW of electricity for homes, social services, and businesses. It is anticipated that the VIP Plants will service more than 5,000 agrarian families. This clean energy solution will contribute agricultural development and low-carbon economic growth that improves food security, financial stability, environmental sustainability, and women’s empowerment through new entrepreneurship opportunities.<br/>
+*<span lang="en-us">'''In [[Tanzania Energy Situation|Tanzania]], '''the Rural Energy Agency has founded the Tanzania Energy Development and Access Project (TEDAP), which acts as a financial intermediary and distributes funds of the World Bank to grid-tied and mini-grid projects. Such projects benefit from subsidies, preferential interest rates and technical assistance. TEDAP was set up to support projects in their first stages and does so by paying a fixed amount in form of a matching grant or payments of up to 80% of the transmission and distribution costs. In the year 2010, there were 17 MW of off-grid projects based on renewable energies installed, planned or were in process.</span><br/>A further example from Tanzania is a project by [[Building Markets for Efficient Biomass Power Provision|Camco Advisory Services]] installing 50 agro-processing centers and village mini-grids capable of producing between 10 and 50kW of electricity for homes, social services, and businesses. It is anticipated that the VIP Plants will service more than 5,000 agrarian families. This clean energy solution will contribute agricultural development and low-carbon economic growth that improves food security, financial stability, environmental sustainability, and women’s empowerment through new entrepreneurship opportunities.<br/>
 <br/>
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 <references />
 [[Category:Mini-grid]]

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 = Further Information<br/> =
-*[http://www.minigridpolicytoolkit.euei-pdf.org/policy-toolkit Mini-grid Policy Toolkit]<br/>
+*Download Mini-grid policy toolkit in [http://www.minigridpolicytoolkit.euei-pdf.org/policy-toolkit English], [http://www.ren21.net/wp-content/uploads/2017/11/Portugese-version-EUEI-PDF_mini-grid-Policy-Toolkit.pdf Portuguese] and [http://www.ren21.net/Portals/0/documents/Resources/MGT/MGTfr.pdf French].
 *Download [http://www.minigridpolicytoolkit.euei-pdf.org/support-tools tools] of the mini-grid support toolkit<br/>
 *[[Basic Energy Services - Stand Alone / Off grid Energy Systems|Basic Energy Services - Stand Alone/Off Grid Energy Systems]]<br/>
@@ Line 161: / Line 161: @@
 [[Mini-grid Policy Toolkit#toc|►Go to Top]]
 = Reference<br/> =

@@ Line 35: / Line 35: @@
 Case studies of significant improvements in electric supply triggered by mini-grids are known from Kenya, Mali, Senegal and Tanzania.<br/>
-[[File:Minigrid space.png|776px|Graphic of mini-grid space by Inensus|alt=Graphic of mini-grid space by Inensus]]<br/><br/>
+[[File:Minigrid space.png|border|center|600pxpx|Graphic of mini-grid space by Inensus|alt=Graphic of mini-grid space by Inensus]]<br/><br/>
 [[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
@@ Line 78: / Line 78: @@
 <br/>
-[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]
 = Case Studies<br/> =
-*'''In [[Kenya Energy Situation|Kenya]],''' the electricity access rate in many remote areas is still below 5%. As grid extension to these areas is economically not feasible, mini-grids are often the most suitable alternative. Kenya's Rural Electrification Master Plan (REMP) incorporates off-grid approaches since 2009.The National Rural Electrification Authority (REA) plans and develops mini-grid sites throughout the country. At the moment (2016), there are 21 off-grid stations, which were predominantly developed by the government. While these are largly diesel-powered, the government currently plans to hybridize all systems with predominantly solar energy. Currently (as of 2016), there are 11 additional sites under construction by REA. Furthermore, NGOs and communities, but also several private firms, develop smaller-scale mini-grids in Kenya. An example of such is the [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek Power mini‐grid in Narok County], which has been developed as a demonstration power plant by the [https://www.giz.de/en/worldwide/25332.html ProSolar] project of GIZ - Kenya. Un‐interrupted grid quality electricity is be provided at a tariff agreed with the community. The power plant has received a permit from the ERC to generate, distribute and retail electrical power.
+*'''In [[Kenya_Energy_Situation|Kenya]],''' the electricity access rate in many remote areas is still below 5%. As grid extension to these areas is economically not feasible, mini-grids are often the most suitable alternative. Kenya's Rural Electrification Master Plan (REMP) incorporates off-grid approaches since 2009.The National Rural Electrification Authority (REA) plans and develops mini-grid sites throughout the country. At the moment (2016), there are 21 off-grid stations, which were predominantly developed by the government. While these are largly diesel-powered, the government currently plans to hybridize all systems with predominantly solar energy. Currently (as of 2016), there are 11 additional sites under construction by REA. Furthermore, NGOs and communities, but also several private firms, develop smaller-scale mini-grids in Kenya. An example of such is the [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek Power mini‐grid in Narok County], which has been developed as a demonstration power plant by the [https://www.giz.de/en/worldwide/25332.html ProSolar] project of GIZ - Kenya. Un‐interrupted grid quality electricity is be provided at a tariff agreed with the community. The power plant has received a permit from the ERC to generate, distribute and retail electrical power.
 <br/>
@@ Line 98: / Line 95: @@
 *'''In [[Senegal Energy Situation|Senegal]]''', electric power is provided by different providers. Responsible for large areas are companies shaped like utilities. They conduct electrification in a mixed-form of both grid extension and off-grid roll-out. In addition to these companies there are "Locally Initiated Rural Electrification" projects, operating stand-alone mini-grids for individual remote communities. In Senegal, there are many private operators active, with 30 systems in operation and several hundred mini-grid projects planned. Operators of mini-grids can apply for a so-called renewable contract which will permit them to sale electricity for the next 15 years and to distribute electricity for the next 25 years. The contracts are issued by the Senegalese Ministry of Energy and the Development of Renewable Energies. Individually determined tariffs allow comparatively high Internal Rates of Return of up to 12% of the private investment.<br/>
-<div><div><div id="_com_1"><br/></div><div>For more case studies please have a look at the [http://www.minigridpolicytoolkit.euei-pdf.org/casestudies website] of the Mini-Grid Policy Toolkit. Also the World Bank has published several [http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY2/EXTRENENERGYTK/0,,contentMDK:21819851~menuPK:5138378~pagePK:148956~piPK:216618~theSitePK:5138247,00.html#MiniGrid Mini-Grid Renewable Energy Systems Case Studies] showcasing the best practices and lessons learned.<br/></div><div><br/></div><div><br/></div><div>[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/></div><div></div></div></div>
+<div><div><div id="_com_1"><br/></div><div>For more case studies please have a look at the [http://www.minigridpolicytoolkit.euei-pdf.org/casestudies website] of the Mini-Grid Policy Toolkit. Also the World Bank has published several [http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY2/EXTRENENERGYTK/0,,contentMDK:21819851~menuPK:5138378~pagePK:148956~piPK:216618~theSitePK:5138247,00.html#MiniGrid Mini-Grid Renewable Energy Systems Case Studies] showcasing the best practices and lessons learned.<br/></div><div><br/></div><div><br/></div><div>[[Mini-grid Policy Toolkit#toc|►Go to Top]]</div></div></div>
 = Mini-grid Economics<br/> =
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 The institutional ramework&nbsp;needs&nbsp;to&nbsp;address the expectations of different stakeholders concerning revenues as well as customers needs regarding affordability and safety. It should be stable, clear and comprehensive, accessible, cost-effective and efficient,&nbsp;transparent and predictable.<br/>
-The policy and regulatory framework includes policies,&nbsp;institutions, and regulations,&nbsp;as well as processes.&nbsp;<br/>&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;<br/>
+The policy and regulatory framework includes policies,&nbsp;institutions, and regulations,&nbsp;as well as processes.&nbsp;<br/><br/>
 [[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
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 <br/>[[Mini-grid Policy Toolkit#toc|►Go to Top]]
 = Further Information<br/> =
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 *World Bank, 2014: "[https://openknowledge.worldbank.org/bitstream/handle/10986/16571/9781464800931.pdf?sequence=1 From the Bottom Up: How Small Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa]"<br/>
 *ProSolar handbooks:&nbsp;[[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|Site selection]], [[Mini Grid Licensing|Mini Grid Licensing]],&nbsp;[[Mini-Grid Sizing|Mini-Grid Sizing]].
-*ProSolar 2016 factsheets:&nbsp;[https://energypedia.info/index.php?title=File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf&page=1 ProSolar]&nbsp;project,&nbsp;Mini-Grids [[:File:Mini-Grids_RBF_Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.
+*ProSolar 2016 factsheets:&nbsp;[https://energypedia.info/index.php?title=File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf&page=1 ProSolar]&nbsp;project,&nbsp;Mini-Grids [[:File:Mini-Grids RBF Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.
 <br/>
 = Reference<br/> =
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 <references />
 [[Category:Africa]]

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 <br/>
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 *Agriculture as a productive use consumer: [[Energy Needs in Smallholder Agriculture|Energy Needs in Smallholder Agriculture]]<br/>
 *World Bank, 2014: "[https://openknowledge.worldbank.org/bitstream/handle/10986/16571/9781464800931.pdf?sequence=1 From the Bottom Up: How Small Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa]"<br/>
-*ProSolar handbooks:&nbsp;[[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|Site selection]], [[Mini_Grid_Licensing|Mini Grid Licensing]],&nbsp;[[Mini-Grid_Sizing|Mini-Grid Sizing]].
+*ProSolar handbooks:&nbsp;[[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|Site selection]], [[Mini Grid Licensing|Mini Grid Licensing]],&nbsp;[[Mini-Grid Sizing|Mini-Grid Sizing]].
-*ProSolar 2016 factsheets:&nbsp;[https://energypedia.info/index.php?title=File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf&page=1 ProSolar]&nbsp;project,&nbsp;Mini-Grids [[Mini-Grids_RBF_Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.
+*ProSolar 2016 factsheets:&nbsp;[https://energypedia.info/index.php?title=File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf&page=1 ProSolar]&nbsp;project,&nbsp;Mini-Grids [[:File:Mini-Grids_RBF_Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.
 <br/>

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 The extension of national grids into remote areas can thus bring social and economic benefits connected with an increase of agricultural productivity. However, the connection of isolated regions to the main electricity grid is often costly and difficult. Off-grid solutions such as mini-grids proof to be a very useful way to provide those territories with energy, thereby increasing agricultural productivity, development and livign standards. Renewable energy sources can play a significant role in mini-grids as prcies have decreased considerably within the last years - leading ot the fact that in Africa, nowadays renewable energy and hybrid solutions have a lower [http://www.eia.gov/forecasts/aeo/electricity_generation.cfm Levelised Cost of Electricity] than diesel generators.<br/>
-[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Mini-grids<br/> =
@@ Line 35: / Line 35: @@
 Case studies of significant improvements in electric supply triggered by mini-grids are known from Kenya, Mali, Senegal and Tanzania.<br/>
-[[File:Minigrid space.png|Graphic of mini-grid space by Inensus]]<br/><br/>
+[[File:Minigrid space.png|776px|Graphic of mini-grid space by Inensus|alt=Graphic of mini-grid space by Inensus]]<br/><br/>
 [[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Mini Grid Operator Models<br/> =
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 '''Hybrid Operator Models '''are defined by the fact that investment, ownership and operation of grid-systems is carried out by multiple actors. Separation of tasks can be executed in form of overall separation between production and distribution of power or by separating between building, owning, operating and maintaining the system. The political framework usually conveys or impedes the becoming of hybrid operated grids.<br/><br/>
-[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Barriers<br/> =
@@ Line 77: / Line 78: @@
 <br/>
-[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Case Studies<br/> =
@@ Line 97: / Line 98: @@
 *'''In [[Senegal Energy Situation|Senegal]]''', electric power is provided by different providers. Responsible for large areas are companies shaped like utilities. They conduct electrification in a mixed-form of both grid extension and off-grid roll-out. In addition to these companies there are "Locally Initiated Rural Electrification" projects, operating stand-alone mini-grids for individual remote communities. In Senegal, there are many private operators active, with 30 systems in operation and several hundred mini-grid projects planned. Operators of mini-grids can apply for a so-called renewable contract which will permit them to sale electricity for the next 15 years and to distribute electricity for the next 25 years. The contracts are issued by the Senegalese Ministry of Energy and the Development of Renewable Energies. Individually determined tariffs allow comparatively high Internal Rates of Return of up to 12% of the private investment.<br/>
 <div><div><div id="_com_1"><br/></div><div>For more case studies please have a look at the [http://www.minigridpolicytoolkit.euei-pdf.org/casestudies website] of the Mini-Grid Policy Toolkit. Also the World Bank has published several [http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY2/EXTRENENERGYTK/0,,contentMDK:21819851~menuPK:5138378~pagePK:148956~piPK:216618~theSitePK:5138247,00.html#MiniGrid Mini-Grid Renewable Energy Systems Case Studies] showcasing the best practices and lessons learned.<br/></div><div><br/></div><div><br/></div><div>[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/></div><div></div></div></div>
+<br/>
 = Mini-grid Economics<br/> =
@@ Line 117: / Line 118: @@
 <br/>
-[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Policy and Regulation<br/> =
@@ Line 129: / Line 130: @@
 The institutional ramework&nbsp;needs&nbsp;to&nbsp;address the expectations of different stakeholders concerning revenues as well as customers needs regarding affordability and safety. It should be stable, clear and comprehensive, accessible, cost-effective and efficient,&nbsp;transparent and predictable.<br/>
-The policy and regulatory framework includes policies,&nbsp;institutions, and regulations,&nbsp;as well as processes.&nbsp;<br/>
+The policy and regulatory framework includes policies,&nbsp;institutions, and regulations,&nbsp;as well as processes.&nbsp;<br/>&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;<br/>
-[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]<br/>
+[[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Mini-grids and Productive Use Costumers<br/> =
@@ Line 148: / Line 147: @@
 If&nbsp;diesel-run machines are not yet available, adopting electric machines can improve productivity, but promoting their adoption becomes more challenging. When planning electrification with mini-grids, initiating/enhancing productive uses of electricity should be considered to both support economic development of rural areas as well as&nbsp;increase the sustainability and profitability of mini-grid projects. Besides others, productive use consumers&nbsp;need&nbsp;stable electricity tariffs since tariff fluctuation can have severe impacts on their business activity and might even drive them into bankruptcy.<br/>
-<br/>[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]
+<br/>[[Mini-grid Policy Toolkit#toc|►Go to Top]]
 = Further Information<br/> =
@@ Line 172: / Line 171: @@
 [[Mini-grid Policy Toolkit#toc|►Go to Top]]<br/>
 = Reference<br/> =
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 <references />
 [[Category:Mini-grid]]

@@ Line 148: / Line 148: @@
 <br/>[[Mini-grid_Policy_Toolkit#toc|►Go to Top]]
@@ Line 162: / Line 163: @@
 *Agriculture as a productive use consumer: [[Energy Needs in Smallholder Agriculture|Energy Needs in Smallholder Agriculture]]<br/>
 *World Bank, 2014: "[https://openknowledge.worldbank.org/bitstream/handle/10986/16571/9781464800931.pdf?sequence=1 From the Bottom Up: How Small Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa]"<br/>
-*ProSolar - GIZ Kenya handbooks: '[[Mini Grid Licensing|How do we license it]]?', '[[Mini-Grid Sizing|What size shall it be]]?' and 'Where shall we put it?' <br/>
+*ProSolar - GIZ Kenya handbooks: '[[Mini Grid Licensing|How do we license it]]?', '[[Mini-Grid Sizing|What size shall it be]]?' and 'Where shall we put it?'<br/>
-'[[File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|180px|Where shall we put it|alt=Where shall we put it]]?'
+'[[File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|180px|Where shall we put it|alt=Where shall we put it]]
 <br/>