Analysis Of Load Composition Impact On the Bankability Of Rural Mini-Grids

Abstract

To provide electricity to rural areas in sub-Saharan Africa that currently lack access, mini-grids have been considered a solution. However, the deployment of mini-grids is challenging in rural areas of sub-Saharan Africa, due to the low demand, discounted tariffs set by the public power authority, and the limited paying capacity of rural populations. As a result, many mini-grid proj ects in these areas heavily rely on financial aid from donors or government subsidies. While studies have explored ways to improve the bankability of installed mini-grids by incorporating productive uses, each with different load characteristics, there has been limited research on fixed-capacity mini-grids. This study aims to investigate how future load compositions can impact the bankability of rural mini-grids with a fixed capacity. The results indicate that the future load composition, specifically the integration of productive uses such as small bars and millers with the existing household load, can enhance the bankability of the mini-grid.