EconPapers    
Economics at your fingertips  
 

Rural electrification through mini-grids: Challenges ahead

Jörg Peters (), Maximiliane Sievert and Michael A. Toman

Energy Policy, 2019, vol. 132, issue C, 27-31

Abstract: Recent debates on how to provide electricity to the roughly one billion still unconnected people in developing countries have identified mini-grids as a promising way forward. High upfront costs of transmission lines are avoided, and unlike home-scale solar, mini-grids can provide sufficient electricity for productive uses. Indeed, mini-grids play a crucial role in accomplishing the goal of the UN Sustainable Energy for All (SE4All) Initiative to provide universal access to electricity by 2030. This note outlines the challenges the mini-grid sector faces to achieve that potential. To date, few examples of sustainably working mini-grid programs exist. We identify regulatory issues, low electricity demand in rural areas, high payment default rates and over-optimistic demand projections as among the key challenges. Business models that account for high transaction costs in rural areas and that are based on realistic demand forecasts could considerably increase the commercial viability of mini-grids.

Keywords: Public infrastructure; Rural electrification; Energy access; Energy planning systems (search for similar items in EconPapers)
JEL-codes: H54 O13 O21 Q48 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142151930312X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Rural electrification through mini-grids: Challenges ahead (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:132:y:2019:i:c:p:27-31

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-01-01
Handle: RePEc:eee:enepol:v:132:y:2019:i:c:p:27-31