- Mini-grid Market Has $8b Yearly Revenue Potential, Says Report
The mini-grid market offers revenue opportunity of $8 billion yearly, a report by Rural Electrification Agency and Rocky Mountain Institute, has said.
The report, which highlighted Nigeria’s potential as the biggest and most attractive off-grid opportunity in Africa, said installing several hundred mini-grids could reduce costs by about 60 per cent in 2020.
It also said by reducing cost, mini-grids could increase yearly revenue by $5 billion and unlock a large rapidly-expanding market.
The report, which was made available ahead of the 2018 edition of ‘Power Nigeria’ exhibition and conference billed for Lagos from September 25-27, also recognised Nigeria as one of the best locations in the world for mini-grids.
Mini-grids, according to the Mini- Grid Regulation, are stand-alone power generation systems of up to one megawatt (Mw) capacity that provide electricity to multiple consumers through a distribution network.
Mini-grids offer an innovative solution to rural electrification challenges. They can circumvent many of the problems with electricity from the centralised grid, while providing cost-effective power.
Mini-grids can provide reliable and affordable energy to help factories manufacture, students study, and the Nigerian economy reach its full potential.
Thousands of communities in remote regions can be cost-effectively served by mini-grids while providing investors a good return on investment. Although several dozen mini-grids currently exist in Nigeria, only about 10 of these are privately developed and financially sustainable.
Ten commercial mini-grids with a combined capacity of 364kW can serve 2000 households and 250 businesses. The report said installing 10,000 mini-grids of 100kW each will only satisfy 30 per cent of anticipated demand over the next 10 years.
In 10 years, investors and other stakeholders can transform Nigeria’s rural areas by introducing clean and affordable mini-grids to provide energy access.
The exhibition will gather over 20 industry experts, more than 100 regional and international suppliers from 17 countries to address power coverage and funding of new off-grid strategies.