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Mini-Grids for the Base of the Pyramid Market: A Critical Review

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  • Subhes C. Bhattacharyya

    (Institute of Energy and Sustainable Development, De Montfort University, The Gateway, Leicester LE1 9BH, UK)

Abstract

The lack of access to electricity of more than 1.1 billion people around the world remains a major developmental challenge and Goal 7 of the Sustainable Development Goals (SDG) as well as Sustainable Energy for All (SE4ALL) have set a target of universal electrification by 2030. Various studies have identified mini-grid-based electrification as a possible solution. There is a growing body of literature available now that has explored the feasibility, practical application and policy interventions required to support mini-grids. Through a review of available literature, this paper explores whether mini-grids can be a solution for the base of the pyramid (BoP) market and the challenges faced in deploying mini-grids in such markets. Interventions to support the mini-grid deployment are also discussed. The paper finds that the mini-grids are targeting the BoP market but the business is not attractive in profitability terms and requires financial support. Lack of regulatory clarity and non-coordinated policies affect the financial viability of projects, which requires careful support. Mini-grid electrification has hardly been embedded in rural development agenda and hence they have not contributed significantly to livelihood generation. Careful realignment of policies, regulatory frameworks and support systems can better support mini-grid deployment in developing countries.

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  • Subhes C. Bhattacharyya, 2018. "Mini-Grids for the Base of the Pyramid Market: A Critical Review," Energies, MDPI, vol. 11(4), pages 1-21, April.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:4:p:813-:d:139140
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    4. Philomena Dadzie & Nicholas Bamegne Nambie & Belinda Ameh Obobi, 2023. "Impact of Petroleum Energy Price Volatility on Commodity Prices in Ghana," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 73-82, January.
    5. Shakya, Bhupendra & Bruce, Anna & MacGill, Iain, 2019. "Survey based characterisation of energy services for improved design and operation of standalone microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 493-503.
    6. Wen, Cheng & Lovett, Jon C. & Kwayu, Emmanuel J. & Msigwa, Consalva, 2023. "Off-grid households’ preferences for electricity services: Policy implications for mini-grid deployment in rural Tanzania," Energy Policy, Elsevier, vol. 172(C).
    7. Abba, Z.Y.I. & Balta-Ozkan, N. & Hart, P., 2022. "A holistic risk management framework for renewable energy investments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    8. Andrés González-García & Pedro Ciller & Stephen Lee & Rafael Palacios & Fernando de Cuadra García & José Ignacio Pérez-Arriaga, 2022. "A Rising Role for Decentralized Solar Minigrids in Integrated Rural Electrification Planning? Large-Scale, Least-Cost, and Customer-Wise Design of Grid and Off-Grid Supply Systems in Uganda," Energies, MDPI, vol. 15(13), pages 1-31, June.
    9. Namujju, Lillian Donna & Acquah-Swanzy, Henrietta & Ngoti, Irene F., 2023. "An IAD framework analysis of minigrid institutions for sustainable rural electrification in East Africa: A comparative study of Uganda and Tanzania," Energy Policy, Elsevier, vol. 182(C).
    10. Bukari, Dramani & Kemausuor, Francis & Quansah, David A. & Adaramola, Muyiwa S., 2021. "Towards accelerating the deployment of decentralised renewable energy mini-grids in Ghana: Review and analysis of barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    11. Blessing Ugwoke & Adedoyin Adeleke & Stefano P. Corgnati & Joshua M. Pearce & Pierluigi Leone, 2020. "Decentralized Renewable Hybrid Mini-Grids for Rural Communities: Culmination of the IREP Framework and Scale up to Urban Communities," Sustainability, MDPI, vol. 12(18), pages 1-26, September.
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