ivewireFEBRUARY 20252025/138A KNOWLEDGE NOTE SERIES FOR THE ENERGY EXTRACTIVES GLOBAL PRACTICEFive government approaches topromote solar hybrid mini grids in Africa:Which works when-and why?The bottom line.Different private sector-led and government-led approaches to thedevelopment of solar hybrid mini grids are found around the world.Five approaches usedin Africa are reviewed here.Each works better in some contexts than in others;each hasadvantages and disadvantages.In private-sector-led approaches,private developers choosemini grid sites based on their own criteria;in government-led approaches,governments conductcompetitive procurements to award individual sites or zonal concessions.In a variant of thegovernment-led approach,utilities help private companies create and operate mini grids thatare later absorbed into the utility's power system.All approaches involve capital subsidiesBernard Tenenbaum is an independent energyWhat is at stake here?and regulatory consultant.He is a co-author ofRapid expansion of access to electricity depends ona 2024 book on undergrid mini grids from whichfinding the best way to promote mini grids in countriesthis Live Wire is drawn.with different starting conditionsChris Greacen helps ESMAP develop renewableSolar hybrid mini grids can be a cost-effective way to expandenergy mini grids in Sub-Saharan Africa andaccess to electricity as well as reduce carbon emissions.AtSoutheast Asia.He is an adjunct professor in thepresent,solar hybrid mini grids consist of(i)electricity gen-Energy Systems Management program at theeration through solar panels,battery storage,and a smallUniversity of San Francisco.diesel backup generator,and (ii)distribution via poles,wires,Ashish Shrestha is an energy specialist at theand meters.ESMAP estimates that a cumulative 1.2 billiontons of CO2 emissions can be avoided if the global address-World Bank.He co-leads the Bank's electrificationable market of 217,000 mini grids are built by 2030 (ESMAPprograms in Nigeria and provides support for minigrid development through the ESMAP Global2022,p.52)Facility on Mini Grids.1.Grid extension,solar mesh grids,and solar home systems may also beJames Knuckles is a senior energy specialistimportant options to consider in a comprehensive energy access approach.at the World Bank in Nairobi.He co-leads aIt is best to take a technology-neutral approach.regional energy-access financing facility underthe World Bank-supported ASCENT project,aswell as components of World Bank-supportedTHE WORLD BANKESMAPenergy-access projects in Madagascar and theIBRD.IDADemocratic Republic of Congo.2Five government approaches to promote solar hybrid mini grids in AfricaTo fulfill mini grids'full potential,a government's strategychoices will be constrained by:the nature of its legal systemto promote them must recognize the limits created by(e.g.,civil versus common law system),existing in-coun-the country's conditions.But a government does not havetry options to finance new mini grids,available technicalto choose a single approach;different strategies can becapacity,the competence of the national regulator anddeployed in parallel in the same country at the same time.rural electrification agency,the main grid's existing reach,the geographic distribution of the population,the existenceTo date,the five most common approaches used in Africaand capabilities of private sector operators,the political andhave been:security context in the country,and the size of the unservedpopulation,among other factors.1.Sites selected and developed by private developers2.Competitive procurement for groups of individual sitesThe task of selecting an approach is especially relevant sinceselected by the governmentthe April 2024 announcement by the World Bank and the3.Competitive procurement for zonal concessions selectedAfrican Development Bank of a major new initiative to bringby the governmentelectricity to 300 million people in Africa by 2030.If this4.Utility outsourcing of the construction and initial opera-ambitious goal is to be reached,national governments willtion of new mini grids for eventual takeover by the utilityhave to choose strategies that can produce on-the-ground5.Government-and donor-gifted mini grids to communi-results.A successful strategy must combine both speed andties,including those operated by cooperatives.affordability with technical and commercial sustainability.The choice depends on the fit between a country's socioeco-Figure 1 shows the five approaches currently being pursuednomic circumstances and goals,on the one hand,and thein 11 Sub-Saharan African countries.Ten of the countries havefeatures of each strategy,on the other.2 The govemment'sdecided to pursue concurrent approaches,though the dif-ferent approaches may not always be pursued with equal2.This note focuses on mini grid promotion strategies implemented byeffort or commitment.individual countries.A proposed multi-country approach is now under earlydiscussion for a group of smaller countries in West Africa.Figure 1.Different government strategies to promote mini grids in Sub-Saharan Africa봉Approach 1:Sites selected and operated●●●by private develo persselectedsitestendered in lotsApproach 2:Competetive procurementand privateselected sitesApproach 3:Competitive procurementMini gridfor zones selected by governmentSingle metromodelutilities of construction and initial operationnd maintenance of mini gridsCommunity ownsApproach 5:Community-owned mini gridsNote:"Developer-selected"has also been described as a"private-sector-led"or 'bottom-up"approach."Government-selected"is usually described as a"top-down'or'government-led"approach.DRC Democratic Republic of Congo.