Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190950 
Year of Publication: 
2018
Series/Report no.: 
Ruhr Economic Papers No. 781
Publisher: 
RWI - Leibniz-Institut für Wirtschaftsforschung, Essen
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. 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 are based on realistic demand forecasts could considerably increase the commercial viability of village grids.
Subjects: 
public infrastructure
rural electrification
energy planning systems
JEL: 
H54
O13
O21
Q48
Persistent Identifier of the first edition: 
ISBN: 
978-3-86788-909-4
Document Type: 
Working Paper

Files in This Item:
File
Size
227.72 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.