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Adaptation of Feed-in Tariff for remote mini-grids: Tanzania as an illustrative case

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  • Moner-Girona, M.
  • Ghanadan, R.
  • Solano-Peralta, M.
  • Kougias, I.
  • Bódis, K.
  • Huld, T.
  • Szabó, S.

Abstract

Following the successful Feed-in Tariffs (FiTs) system worldwide, few countries have implemented FiTs explicitly tailored for off-grid or mini-grid systems. This study takes an integrated approach to examine the feasibility of an off-grid Feed-in Tariff (off-FiT) for existing and new remote mini-grids in Tanzania, using a combination of geographical analysis, technical, economic and institutional assessments. Based on detailed modelling of two community off-grid cases, (i) PV-diesel and (ii) mini-hydro, we identify least-cost rural electrification options that make solar and mini-hydro energy competitive with diesel generators and potential effect of the support scheme on rural electrification plans. In the first case, we illustrate where the off-FiT complements diesel generation of an existing mini-grid (PV-diesel). In the second case (mini-hydro), we illustrate conditions where the off-FiT policy brings mini-hydro generation to non-electrified communities and sells renewable electricity directly to new customers.

Suggested Citation

  • Moner-Girona, M. & Ghanadan, R. & Solano-Peralta, M. & Kougias, I. & Bódis, K. & Huld, T. & Szabó, S., 2016. "Adaptation of Feed-in Tariff for remote mini-grids: Tanzania as an illustrative case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 306-318.
    • Handle: RePEc:eee:rensus:v:53:y:2016:i:c:p:306-318
    DOI: 10.1016/j.rser.2015.08.055
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    1. Marandu, Edward E., 2002. "The prospects for local private investment in Tanzania's rural electrification," Energy Policy, Elsevier, vol. 30(11-12), pages 977-985, September.
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    4. Bernard Tenenbaum & Chris Greacen & Tilak Siyambalapitiya & James Knuckles, 2014. "From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa [Quand la lumière vient d'en bas : Comment les petits producteurs d'électric," World Bank Publications - Books, The World Bank Group, number 16571.
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