InterconnectedMinigrids:FromPilotstoPowerhouses

Howgrid-interactiveminigridsboostelectrificationandutilities’finances

November2025FolawiyoAminu,AlbertoRodríguez

AUTHORS&ACKNOWLEDGEMENTS

Authors:

FolawiyoAminuAlbertoRodríguez

Authorslistedinalphabeticalorder.AllauthorsfromRMIunlessotherwisenoted.

Acknowledgements:

Theauthorswouldliketoexpresstheirsincereappreciationtothefollowingindividualsandorganizationsforsharingdetailsoftheirprojectsandprovidingvaluableinsightsandperspectivesthatinformedthiswork:AaronCheng(PowerGenRenewableEnergy),

LaureneDesclaux(UNDP),SamDuby(TFE),StephenKansuk(UNDP),KumbiraiMakanza(NextCenturyPower),JeannotMavoko(Nuru),Luis-CarlosMiro(GIZ),ChristelleOdongo(UNDP),FauziaOkediji(GEAPP),JamesSherwood(RMI),OlatundeOkeowo(RMI),SantosJoséDíazPastor(MIT),CarolineTresise(UNDP),andXavierVallvé(TTA).

AllimagesusedarefromRMIunlessotherwisenoted.

Contacts:

faminu@

arodriguez@

Definitionsofkeytermsused

Distributedenergyresources(DERs)aredemand-andsupply-sideresourcesthatcanbedeployedattheelectricitydistributionorcustomerleveltomeetenergyandreliabilityneeds.

Minigridsareself-containedelectricitygenerationanddistributionsystemsthatprovidepoweratthe

communitylevel.Isolatedminigridsaretypicallydevelopedinruralareaswherethereisnonationalgrid

infrastructure.TheyusuallyconsistofacombinationofthefollowingDERs:solarphotovoltaics(PV),batteryenergystoragesystem(BESS),andabackupdieselgenerator.

Interconnectedminigrids(IMGs)areminigridsthatexchangepowerwithalargergrid,eitherimportingorexportingasneeded.AnIMGintegratesDERslocatedclosetowhereelectricityisconsumed,combining

themwithpowerfromalargergridtoimprovereliability,flexibility,andefficiency.

2

3

ListofAcronyms

AEDC

AbujaElectricityDistributionCompany

AMP

AfricaMinigridsProgram

ARPU

averagerevenueperuser

AT&C

aggregatetechnicalandcommercial

BESS

batteryenergystoragesystem

DARES

DistributedAccessthroughRenewableEnergyScale-up

DERs

distributedenergyresources

DisCo

distributioncompany

DRC

DemocraticRepublicofCongo

EPC

engineering,procurement,andconstruction

IE

IkejaElectric

IMG

interconnectedminigrid

IPP

independentpowerproducer

IRP

integratedresourceplan

JIRAMA

JirosyranoMalagasy(Madagascar’sstate-ownedutility)

KEDCO

KanoElectricityDistributionCompany

kW

kilowatt

kWh

kilowatt-hour

MW

megawatt

MWh

megawatt-hour

NERC

NigerianElectricityRegulatoryCommission

NGN

Nigeriannaira

PDMC

PlandeDéveloppementàMoindreCo?t(LeastCostDevelopmentPlan–Madagascar)

PV

Photovoltaic

SDG7

SustainableDevelopmentGoal7

SME

small-to-mediumenterprises

SNEL

SociétéNationaled'électricité(DRC’snationalutility)

SONELEC

SociétéNationaledel’ElectricitédesComores(Comoros’nationalutility)

UNDP

UnitedNationsDevelopmentProgramme

USD

UnitedStatesdollar

ZESA

ZimbabweElectricitySupplyAuthority

ZETDC

ZimbabweElectricityTransmissionandDistributionCompany

ZESCO

ZambiaElectricitySupplyCorporation

4

TableofContents

DEFINITIONSOFKEYTERMSUSED 2

LISTOFACRONYMS 3

EXECUTIVESUMMARY 5

IMGSINACTION:LESSONSFROMACROSSAFRICA 5

THEOPPORTUNITYFORSCALINGIMGSINAFRICA 5

1.INTRODUCTION 7

1.1.WHYINTERCONNECTEDMINIGRIDS? 7

1.2.AFRICAMINIGRIDSPROGRAM 9

1.3.REPORTSTRUCTURE 10

2.IMGEXPERIENCESINAFRICA 11

2.1.HOWIMGSWORK 11

2.2.NIGERIA—TOTO,ZAWACIKI,ROBINYANANDWUSEIMGS 14

2.3.DEMOCRATICREPUBLICOFCONGO—GOMAIMG 17

2.4.ZIMBABWE—HUNYANIIMG 19

3.FRAMEWORKFORSCALINGIMGS:IDENTIFYINGHIGH-POTENTIALMARKETSACROSSAFRICA

21

4.HIGH-LEVELCOUNTRYASSESSMENTONIMGPOTENTIAL 24

4.1.ZAMBIA—HIGHPOTENTIALFORIMGS 24

4.2.ETHIOPIA—LOWPOTENTIALFORIMGS 26

4.3.MADAGASCAR—HIGHPOTENTIALFORIMGS 28

4.4.COMOROS—MODERATEPOTENTIALFORIMGS 29

5.RECOMMENDEDPATHWAYFORIMGDEPLOYMENTS 31

APPENDIX—SUMMARYOFIMPLEMENTATIONSTEPSFORIMGSINNIGERIA 34

ENDNOTES 37

5

ExecutiveSummary

Africa’senergychallengeremainsimmense.Nearly1.4billionpeople—almost90%ofthecontinent’sentirepopulation—areeitherinthedark(600million)orsufferfromunreliablepoweronadailybasis(800

million)

.1

ThisislargelybecauseincumbentAfricanutilitiesstrugglewithlimitedgenerationcapacity,aginginfrastructure,risingdebt,andunsustainablebusinessmodels

.2

Theresultisawideninggapbetween

demandandtheelectricitysystems’abilitytosupplyit.

Interconnectedminigrids(IMGs)presentatransformativeopportunityfortheenergytransitionthatcan

scaleacrossmanygeographies.Bycombininglocalrenewableenergygenerationandstoragewiththe

nationalgrid,IMGsimprovethestatusquoofurban,peri-urban,andruralpopulationsandareabridge

betweenon-gridandoff-gridsolutions.IMGsdelivera“win-win-win”outcomefordevelopers,consumers,

andutilitiesbyofferinghighenergyconsumptionandrevenuesfordevelopers,reducingrelianceoncostlyfossilfuelsandimprovingservicereliabilityandaffordabilityforconsumers,andunlockingprivatecapitaltostrengthendistributionnetworkinfrastructureandexpandgeneration,ultimatelyimprovingutilities’

performance.IMGscanenhanceenergysecurity,supportclimategoals,anddriveindustrialization.

IMGsinaction:LessonsfromacrossAfrica

CasestudiesfromNigeriaandtheDemocraticRepublicofCongo(DRC)demonstrateIMGs’abilityto

enhancereliability,expandconnections,andstimulateeconomicdevelopment.InNigeria,fourIMGprojectstotaling3megawatts(MW)ofsolarPVand3megawatt-hours(MWh)ofstoragenowserveover13,000

connections,improvingsupplyfromlessthan3hoursto15hoursdailyandincreasingmeteredconnectionsby62%.IntheDRC,Nuru’s1.3MW/2.3MWhIMGserving2,700customersinGomareduceddiesel

consumptionby96%post-interconnection,improvedserviceavailability,andcatalyzedlocalbusiness

growth.TheIMGprovidesreliablepowertocriticalinfrastructure,includingwaterandinformationand

communicationtechnology(ICT)infrastructurethatserves400,000people,includingtensofthousandsofdisplacedpersons.InZimbabwe,theHunyani1.8MW/1.3MWhIMGprojectaimstoelectrify6,000

householdsandbusinesses.

TheopportunityforscalingIMGsinAfrica

ThereareseveralkeyfactorsandlocalconditionsthatexistinthecountrieswithafirstwaveofIMGprojects,andthatcanenablethedeploymentofIMGsinothergeographies.Theseinclude:

?Presenceofaweakandoverloadedmaintransmissionanddistributiongrid

?Strongbutunderserveddemandcenters

?Supportivepolicyandregulatoryenvironmentsandgovernmentinitiatives

?Collaborativeutilitieswiththecapacitytoparticipateinpartnerships

?Privatesectorattractiveness

WeassessedZambia,Madagascar,EthiopiaandtheComoros—countriesintheAfricaMinigridsProgram(AMP)(seesection1.2)thatrepresentdiversepowersystems,policies,privatesectorinterest,andminigridmarketgrowth—onkeyfactorstodeterminethecountries’potentialforIMGdeployment.

6

ExhibitES1:ScorecardonIMGpotentialofselectedAMPcountries

ApathwaytoscaleIMGs

ToidentifynewIMGmarketsandacceleratetheiradoption,policymakers,governmentagencies,donors,financiers,DERdevelopers,andutilitiesshouldtakethefollowingsteps:

Step1—Conductmarketassessmentstoidentifyhigh-potentialareasbasedonenablingconditions.

Step2—AdaptIMGbusinessmodelstolocalcontexts,ensuringalignmentwithregulatoryframeworksandstakeholderneeds.

Step3—Supportearly-stagepilotswithconcessionalfinancingandriskmitigationtoolstobuildconfidenceandattractprivateinvestment.

Step4—Institutionalizelearningsfrompilotsthroughknowledge-sharingandpolicyintegration.Step5—Launchsecond-waveprojectsandrefinesubsidiestoacceleratescale.

Step6—Transitiontocompetitiveprocurementformaturemarkets,reducingrelianceonpublicsubsidies.

7

1.Introduction

1.1.Whyinterconnectedminigrids?

AcrossAfrica,nearly800millionpeoplearetechnicallyconnectedtothegrid,yetmorethanhalfstillendureinsufficientandunreliableelectricitythatfailstomeettheirdailyneeds

.3

Evenmorestark,approximately600millionpeopleremainwithoutelectricityentirely,makingAfricahometotheworld’slargestenergy

accessgap

.4

Intheabsenceofreliablepowersupply,fromruralvillagestomajorcities,residential,

institutional,andcommercialcustomersareforcedtorelyonexpensivepetrolanddieselgeneratorstomeettheirenergyneeds.Theconsequencesrippleacrosstheeconomy:smallenterprisesstruggleto

survive,localmanufacturingcannotscale,andessentialindustriesfailtodevelop.Reliableelectricityisaprerequisiteforhumandevelopment,economicgrowth,andindustrialization

.5

AtthecenterofthischallengeareAfrica’selectricityutilities,whicharetaskedwithdeliveringabundantandreliablepower.Theseutilitiesfaceoutdatedandoverstretchedgridinfrastructure,limitedcapacity,and

unsustainablebusinessmodels.Asaresult,theyfacemountingdebtandchronicrevenueshortfalls,makingitextremelydifficulttoattractthepublicandprivatesectorinvestmentneededformodernization.Thisis

particularlytrueforinvestmentintransmissionanddistribution,whichlagsfarbehindgeneration,creatingacriticalbottlenecktodeliverqualityelectricitytoend-users

.6

Distributedenergyresources(DERs),particularlysolarphotovoltaics(PV),arewidelyrecognizedasa

significantpartofthesolutiontoAfrica’senergydeficit,andtheiradoptionisrapidlyincreasing

.7

One

exampleisisolatedsolarminigrids,whichareself-containedelectricitygenerationsystemsthattypically

consistofsolarPV,batteryenergystoragesystems(BESS),backupdieselgenerators,anddistribution

infrastructuretosupplypoweratthecommunitylevel.Isolatedminigridsarewidelyregardedasoneofthemostcost-effectivesolutionsforcustomerswholackaccesstothemaingrid,witharound75MWofcapacitydeployedacross

Africa.8

,i

Yetdeploymentremainsfartooslowtoclosetheaccessgapalone.

Thisslowdeploymentunderscorestheneedforcomplementarysolutionsandapproaches,suchas

interconnectedminigrids.Unlikeisolatedminigrids,aninterconnectedminigrid(IMG)leveragesexistinggridinfrastructureandexchangespowerwithalargergrid.AnIMGtypicallyblendselectricityfromalargergrid

withclean,localgeneration(i.e.,DERs)situatednearthepointofconsumption,resultinginincreasedpowerreliabilityandavailabilityatalowercosttotheend-userthanalternativefossil-fueloptions.Typically

deployedinunderservedbuteconomicallyactiveareas,IMGsgenerallyachievehigherenergyconsumptionandrevenuesthanminigridsinisolatedgreenfieldlocations.Forutilities,IMGsunlockprivatecapitalto

strengthendistributionnetworkinfrastructure,expandgeneration,andretaincustomers—a“win-win-win”modelfordevelopers,consumers,andutilitiesalike(Exhibit1).

Africa’srapidpopulationgrowthandurbanizationarecreatinganurgentneedforreliableenergysolutions.IMGscanplayacentralroleinAfrica’senergytransition,supportingthecontinent’senergysecurity,climategoals,andindustrialization.Theycanbridgethegapbetweencentralizedanddecentralizedapproaches,

expandearly-stageminigridmarketsacrossmanyAfricancountries,andhelpdriveprivateinvestmentat

iOfficialaggregatedminigridinstalledcapacityfiguresinAfricaarelikelyunderestimatedandonlyrepresentpartofthetotaldeployment.

8

scaleintothesector,contributingtotheAMPmandate,achievingSustainableDevelopmentGoal7(SDG7),andadvancingMission300

.ii

Exhibit1:Win-win-winIMGvalueproposition

Box1:PastpublicationsonIMGs

Thechallengeofdeliveringreliableelectricitytounderservedcustomers—thoseconnectedtothemaingridbutfacingfrequentandlongoutages—hasbeenwidelyexaminedintheenergyaccessliterature.

?RMI’sUndertheGridreportunderscoresthechallengesNigerianutilitiesencounterinservingtheseareasandshowshowminigridsthatrelyonexistingdistributioncompany(DisCo)

infrastructurecandelivermutualbenefitstoDisCos,developers,andconsumers

.9

?TheWorldBank’sMiniGridSolutionsforUnderservedCustomersfurtherinvestigatesthispotentialthroughcasestudiesofIMGsinNigeriaandIndia

.10

?ThePartnershipforPowerreportbyRMIandTheGlobalEnergyAlliancepresentsadata-driven,groundbreakinganalysisbasedonoperationaldatafromNigeria’searlyIMGs.

ThisreportoffersabroaderperspectiveonIMGsinAfrica,demonstratingtheircapacitytoenhance

electrificationwithcasestudies,readinessassessments,andpracticalrecommendationsforstakeholdersacrossthecontinent

.11

iiSDG7isoneofthe17SustainableDevelopmentGoalsestablishedbytheUnitedNationsin2015.Itaimsto“Ensure

accesstoaffordable,reliable,sustainableandmodernenergyforall”by2030

(/goals/goal7

).Mission300isacollaborativeinitiativebytheWorldBankGroupandtheAfricanDevelopmentBankaimedatproviding

electricityaccessto300millionpeopleinsub-SaharanAfricaby2030,focusingondistributedrenewableenergysolutionsandpartnerships

(/energysummit/)

.

9

1.2.AfricaMinigridsProgram

TheAfricaMinigridsProgram(AMP)isacountry-ledregionalinitiativeactivein21Africancountries,ledbyUNDPwithfundingfromtheGlobalEnvironmentFacility(GEF)andimplementedalongsidetheAfrican

DevelopmentBank(AfDB)andRockyMountainInstitute(RMI).Itsprimarygoalistoexpandelectricityaccessbyimprovingthefinancialviabilityofrenewableenergyminigridsandattractinglarge-scale

commercialinvestment.Bydrivingdowncostsacrosstechnology,financing,andbusinessmodels,AMPpositionsminigridsasacost-effective,reliablesolutionforunderservedcommunities.

Theprogramcombines21nationalprojectsfocusedonpolicy,private-sectorinnovation,financing,

knowledgesharing,andmonitoringwitharegionalplatformthatofferstechnicalassistanceanddigital

toolstoreducecosts.AMP’sstrategyprioritizesadvancingnationaldialoguesondeliverymodels,promotingproductiveenergyuses,andleveragingdataanddigitaltechnologiestoacceleratethegrowthofaffordable,resilientminigridsolutions.IMGsareonetypeofpilotprojectenvisionedfortheAMPnationalprojects(seeExhibit2).

Exhibit2:TypesofminigridpilotsinAMP

TypeofPilot

Description

Greenfieldminigrids(includingIMGs)

Minigridsystemsusuallybuiltinpreviouslyunconnectedareas;theyinclude

generationanddistributionassets,andinsomecases,productiveuse

equipment.Insomeinstances,minigridscanbeinterconnectedtolargergridstoexpandtheelectricitysupplyand/orhelpstabilizethegridsystem,reducingtechnicalandcommerciallosses.

Hybridizationof

Retrofitting(i.e.,hybridization)ofexistingfossil-fuel-basedminigridsto

diesel-based

increasethefractionofrenewablepowergenerationandreduceoperations

minigrids

andmaintenancecosts.

Aproductiveuse

overlaytoanexistingorplannedminigrid

Investmentsinproductiveuseappliancesandequipment—andifneededin

minigridsystemenhancements—toincreasethenumberandenergy

consumptionofproductiveusersofpowerconnectedtoanexistingorplannedminigrid.Thiscanhelpgenerateimpactandadditionalincome,improveusers’abilitytopayforservices,andimproveutilizationofminigridassets.

WithintheAMPframework,theDeriskingRenewableEnergyInvestment(DREI)frameworkhasemergedasakeymethodologyandtoolforsystematicallyidentifyingandaddressingbarrierstoprivatesector

participationinrenewableenergymarkets.Bytailoringinvestmentde-riskinginstrumentstonational

contexts,theDREIapproachcomplementsAMP’sobjectivesofscalingminigriddeploymentandenhancingthefinancialviabilityofcleanenergyprojects.

IMGshaveemergedasatopicofinterestinseveralDREIstudies.OneexampleisfoundinComoros,wheregridcoverageisrelativelyhigh,butreliabilityremainslow.Inthiscontext,theAMP-DREIteamidentified

10

IMGsasastrategicopportunitytoenhanceenergysecurityandstimulatelocaleconomicdevelopment.Bycouplingrenewablegenerationwithupgradedexistinggridinfrastructure,IMGscanhelpincreasetheshareofcleanelectricity,improveservicequalityforhouseholdsandbusinesses,andreducedependenceon

costlyfossilfuels.TheDREIstudyinComorosfocusesondevelopingaviablebusinessmodelcenteredoncommunity-ledinitiativeswithprivatesectorparticipation.Atthesametime,thestudyidentifieskey

investmentrisks,recommendsappropriatederiskinginstruments,andassessestheeconomicandoperationalbenefitsofsolarIMGsforboththenationalutilityandthebroadereconomy.

1.3.Reportstructure

ThisreportaimstopromoteIMGsinsub-SaharanAfricabypresentingthebenefitsandopportunitiesacrossmultiplegeographies.Itisorganizedasfollows:

?Section1,theintroduction,discussestheenergychallengesmanyAfricancountriesfaceandhowIMGscancontributetoaddressingthosechallenges.

?Section2describescasestudiesofIMGsuccessstoriesandexperiencesinsub-SaharanAfrica.

?Section3providesanoverviewoftheenablingfactorsthathelpacceleratethedeployment,bankability,andscaleofIMGs.

?Section4assessesalistoffoursub-SaharanAfricancountriesontheseenablingconditions.

?Section5offersrecommendationsandapathwayforIMGprojectdevelopmentinanewgeography.

Box2:Goalandtargetaudience

ThisreportistargetedtoAMPimplementingpartners,governmentstakeholders,donors,financiers,investors,developmentbanks,DERdevelopers,andutilities.Thisdocumentaimsto:

?ExplainInterconnectedminigridsbyhelpingreadersunderstandIMGs,theiraddedvaluetohelpsolveenergyreliabilitychallengesinAfricancountries,andhowtheycancomplementisolated

minigridsandimproveutilities’performancethroughamorecollaborativeapproach.

?SharelessonslearnedandexperiencesfromexistingIMGsinsub-SaharanAfrica,includingtheirimpactandmarkettraction.

?Provideahigh-levelassessmentofIMGpotentialandemergingopportunitiesintheregion.

?OffertargetedrecommendationstoaccelerateIMGadoptionandscaleacrossgeographies.

11

2.IMGExperiencesinAfrica

ThissectionhighlightsIMGexperiences,projects,andpipelinesinvariousAfricancountriesascasestudies,anddiscusseskeyinsights,lessonslearned,andfactorscontributingtothesesolutions

.iii

2.1.HowIMGswork

AtypicalIMGinvolvesanIMGdeveloperwhobuilds,finances,andoperatesalocalgenerationand

distributionsystemconnectedtoalargergrid,usuallymanagedbyautilitycompany.CustomersoftheIMGpayablendedtariffforalltheelectricitytheyuse,andpowerisexchangedbetweentheIMGandtheutilityunderagreedtechnicalandcommercialterms

.iv

Exhibit3illustratestheIMGbusinessmodelinNigeria.Inthismodel,theIMGdevelopertypicallyfinancesandconstructstheprojectinfrastructure,whichconsistsofthesolarPVgenerationassetspairedwitha

smallerstoragesystemthanwouldberequiredforanisolatedminigrid.Thedeveloperalsoundertakesthenecessaryupgradesandexpansionofthelocaldistributionnetworkandoperatesthenetworkduringtheagreedperiod.Customerspayablendedtariffforallenergyused,andtheIMGdeveloperreimbursesthe

utilityforelectricityfromthemaingrid,alongwithafeefornetworkuse

.v

Atripartiteagreementbetweenthedeveloper,utility,andtheserviceareaoutlinesthetermsoftheIMG.AppendixAprovidesadditionaldetailsonkeyimplementationstepsforanIMGandexplainshowresponsibilitiesaredividedbetween

utilitiesandIMGdevelopersinNigeria.

OtherIMGbusinessanddeliverymodelsarealsofeasible.Forinstance,intheGomacasestudyinsection2.3,anIMGconnectstoalargerminigrid,andinboththeHunyaniandGomaIMGs,developersbuilt

greenfielddistributionnetworkarchitecturesfromscratch.Additionally,IMGscanbedesignedtoserve

variouscustomerarchetypesbeyondurbanandperi-urbanareas,suchasresidentialestates,industrial

parks,andagriculturalprocessingclusters.Exhibit4providesasummaryoftheIMGprojectsinAfrica

discussedinthisreport,andliststheprojectdevelopers,themaingridoperator,keyfeaturesofeachIMG,andessentialoperationaldetails.

iiiTheprojectsfeaturedinthisreportdonotrepresentallIMGprojectsinAfrica.

ivAblendedtariffisasingleaverageratethatcombinesboththeutilityelectricitychargeandachargefortheminigridelectricity.Thischargeallowsthedevelopertocoveroperationsandrecoupitsprojectcost.

vInNigeriathisiscommonlyreferredasDUOS=DistributionUseofSystem

12

Exhibit3:SummaryofatypicalIMGbusinessmodel

Box3:Preparingisolatedminigridsforfutureinterconnection

Isolatedminigridscanbedesignedtobeinterconnection-readyandcanevolveintointerconnected

minigridsinthefuture.BoththeTotoandGomaIMGsstartedcommercialoperationsasisolated

minigridsbeforelaterinterconnectingwithalargergrid.IncountrieslikeNigeria,regulationsmake

provisionforminigridstobeconvertedtoIMGswhenthemaingridarrives.Interconnectioncanallow

isolatedminigridstotakeadvantageofthecheaperpowersupplyfromthelargergridtoreducecostsandexpandoperations,asinTotoandGoma.

Preparingaminigridforinterconnectioninvolvestrade-offs.Manyruralminigridsarenotbuilttoutilitystandards,withequipmentsuchasmeters,poles,ordistributioncablesnotmatchingcertainstandardsforlargerdistributiongrids.Interconnectionalsorequiresspecializedhardwaresuchastransformers,disconnectionswitches,andislandingcontrolsthatcouldincreasecapitalcostsbyupto20%

.12

In

addition,negotiatinginterconnectiontermswithutilitiesoftenincreasesdevelopmenttimelinesandexpenses.

Whereandwhenappropriate,developerscanmitigatethesechallengesbyaligningequipmentwith

distributioncodes,establishingagreementswithpotentialutilitypartners,andplanningforeventual

interconnection.Ultimately,aninterconnection-readyminigridstrengthensresilienceandsupportsthe

13

transitiontowardafullyintegratedgridthatblendsdistributedandcentralizedresourcesforthemostcost-effective,reliablepower.Itiscrucialthatregulationsallowforinterconnectionandareclearonthearrangementsforgridarrival.

Exhibit4:SummaryofIMGprojectsinAfricahighlightedinthisreport

*Whereapplicable,projectedvalueshavebeenprovided.

14

2.2.Nigeria—Toto,Zawaciki,RobinyanandWuseIMGs

InNigeria,anestimated150millionpeople—75%ofthepopulation—havenoorunreliableaccessto

electricity

.13

Mostelectricityusersrelyonpetrolanddiesel-poweredgeneratorsthatcostoverNGN600/kWh(US$0.40/kWh)justforfueltooperate.EightypercentofelectricityusageinNigeriacomesfrom22million

smallgenerators,totaling58GWintotalcapacity,comparedtothe5GWofavailablegenerationcapacityontheelectricitygrid

.14

Inadditiontoconstrainedgeneration,Nigeria,selectricitydistributionutilities(DisCos)facenumerouschallenges,includinginadequateinfrastructure,hightechnicalandnon-technicallosses,andlimitedgridcoverage.

Despiteitsrapiddeploymentofminigridswithover200minigridscurrentlyinoperationandapipelineof

4,000minigridstobedeployedbetweennowand2030,thecountryhasmovedrelativelyslowerwithIMGs

.15

Recently,withsupportfromRMIandTheGlobalEnergyAllianceforPeopleandPlanet(TheGlobalEnergy

Alliance),thefirstwaveofIMGprojectshasbeendeployedinNigeria.Thesefourprojectshaveadded3MWofsolarPVand3MWhofbatterystorage,haveretrofittedandexpandedtheexistingdistributionnetwork,

andnowserveover13,000connectionsinurbanandperi-urbanareasinNigeria.Theprojectsaresupportingover3,300jobsinenterprisesandbusinessesbenefittingfromimprovedaccesstoelectricity

.16

Earlyresultsfromthreeoftheseprojectsthathavebeenoperationalformonths(RobinyanIMG)andyears(TotoandZawacikiIMGs)havebeenpositive.TheareasservedbyIMGshaveexperiencedsignificant

improvementsinenergysupplyandreliability,withdailyenergysupplyincreasingfromlessthan3hourstoaround15hoursduetoenergyfromthelocalPVgenerationplantandimprovedgridsupply

.17

Therehas

beena62%increaseinmeteredconnectionsacrossallfourprojects

.18

Withmorecommercialcustomersandhigher-incomeresidentialcustomers,theseareashave15timeshigherenergyconsumptionthantheirisolatedminigridpeersinNigeria,whichtranslatestohighermonthlyrevenuesfordevelopers

.19

DisCosthatpreviouslyoperatedintheseareasnowservedbytheIMGshavereducedtheirlossesand

increasedtheirrevenues,achievinga100%collectionratefrompreviouslyunprofitablecommunities

.20

Theseimprovementsareduetomorerobustdistributionnetworksthatthedeveloperspartiallyorfully

finance,robustbillinginfrastructure,improvedcustomerengagement,andtheincreasedhoursofmaingridsupplytotheIMG

.21

DisCosarealsobenefitingfromreducedoperationalcostsbecausethosearebornebythedevelopers,whichoftenmeansaDisCocandivertresourcestootherareas,potentiallyalleviating

resourceconstraintselsewhere

.22

Keyfactorsthatcontributedtothesuccessoftheseprojectsincludechoosingsiteswithhighenergy

demandandstrongcustomerinterest,effectivecollaborationbetweenthemaindistributionutilitiesandthedevelopers,supportiveregulation,andgrantfundingandtechnicalassistancefromRMIandTheGlobalEnergyAlliance.

IMGsaresetforrapidgrowthinNigeriainthecomingyears.TheRuralElectrificationAgencyofNigeria,

throughitsDistributedAccessthroughRe