Technical ReportPDF Available

Exploring the nexus of mini-grids and digital technologies

Authors:
IASS STUDY
Institute for Advanced Sustainability Studies (IASS)
Potsdam, August 2019
Kerstin Fritzsche, Luke Shuttleworth,
Bernhard Brand, Philipp Blechinger
Potentials, challenges and options
for sustainable energy access
in Sub-Saharan Africa
Exploring the nexus
of mini-grids and
digital technologies
Cover photo by N ASA/pu blic dom ain
Executive Summary
1. Introduction
2. Mini-grids for sustainable energy access
2. 1 Electricity access in Sub-Saharan Africa
2.2 Mini-grid deployment in Sub-Saharan Africa
2.3 Challenges for mini-grids
2.4 Productive use and community engagement
3. ICTs and digital development in Sub-Saharan Africa
3. 1 Digital change in Sub-Saharan Africa
3.2 ICT adoption and prices
3.3 Economic, social and ecological impacts of ICTs
3.4 Challenges for rural connectivity
4. Requirements for sustainable mini-grids
5. Applications of digital technologies in mini-grids
5. 1 Digital technologies for system functionalities and balancing of mini-grids
5. 2 Digital technologies for financing mini-grids
5. 3 Digital technologies for the planning and design of mini-grids
5. 4 Digital technologies for operation, maintenance and customer management
5. 5 Mini-grids to power digital technologies for productive use
6. Conclusions
7. Options for action
Annex I: Overview and profiles of selected Sub-Saharan African countries
Annex II: List of interviews
References
About the authors
Contents
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Figure 1: Rural electricity access map (2016)
Figure 2: Countries where less than 20% of the population use the internet (2017)
Figure 3: Mobile money account penetration in Sub-Saharan Africa (2017)
Figure 4: Application areas of digital technologies in mini-grids
Exploring the n exus of mini-grids an d digital technologie s
Figures
Boxes
Box 1: A glimpse at the SDGs
Box 2: What is a mini-grid?
Box 3: Environmental challenges of mini-grids
Box 4: Considering gender issues in mini-grids
Box 5: Principles for Digital Development
Box 6: A glimpse at blockchain technology
Box 7: Using GIS for site identification
Box 8: Linking energy access with education
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Acknowledgements
We would like to express our gratitude to the German Federal Ministry for Economic Cooperation and Develop-
ment (BMZ) and the United Nations Industrial Development Organisation (UNIDO) who funded this study. We
particularly thank Jens Burgtorf, Ludger Lorych and Dorothea Otremba from the Sector Programme Energy –
Energy Transition Cooperation and Regulatory Policy (E-KORE) at the Gesellschaft für Internationale Zusammen-
arbeit (GIZ) GmbH as well as Takeshi Nagasawa, Cassandra Pillay and Susumu Takahashi from the Department of
Energy at UNIDO who provided essential contributions and support throughout the project.
Furthermore, we would like to thank the fourteen interview partners as well as the participants of a workshop con-
ducted on 9 May 2019 in Berlin who took time out of their busy schedules and shared their experiences and views
with us on digital technologies and mini-grids in Sub-Saharan Africa. Their expertise provided essential inputs for
the study and complemented the extensive desktop research conducted by the team of authors.
The outcome of our research also benefited from a close exchange of ideas and contacts with Tobias Engelmeier and
William Duren from TFE Energy who we thank a lot for the collegial and fruitful collaboration. Finally, our special
thanks goes to Grischa Beier (IASS) for his critical feedback and encouragement throughout the project, Ayodeji
Okunlola (IASS) for sharing his expertise with us on several occasions as well as to all our colleagues who suppor-
ted and inspired us in countless ways.
The content of the study as well as any flaws it may have are the sole responsibility of the authors.
Exploring the n exus of mini-grids an d digital technologie s
Abbreviations
ANN
BMZ
DLT
ECOWAS
GIS
GIZ
GNI
ICT4D
ICTs
IEA
IoT
IRENA
IT
ITU
NREL
PAYG
PUE
PV
REA
RISE
RLI
RMS
SADC
SCADA
SDGs
SHS
SSA
SWARM
TaTEDO
UASF
UNIDO
USAID
WDI
Artificial neuronal networks
Federal Ministry for Economic Cooperation and Development
Distributed ledger technologies
Economic Community of West African States
Geographic Information System
Gesellschaft für Internationale Zusammenarbeit GmbH
Gross National Income
ICT for development
Information and communication technologies
International Energy Agency
Internet of things
International Renewable Energy Agency
Information technology
International Telecommunication Union
National Renewable Energy Laboratory
Pay as you go
Productive use of energy
Photovoltaic
Rural Electrification Agency
Regulatory Indicators for Sustainable Energy
Reiner Lemoine Institute
Remote monitoring system
Southern African Development Community
Systems control and data acquisition
Sustainable Development Goals
Solar home systems
Sub-Saharan Africa
Site Wizard for Analysis, Reconnaissance and Mapping
Tanzania Traditional Energy Development Organization
Universal access and service funds
United Nations Industrial Development Organization
United States Agency for International Development
World Development Indicators
Executive Summary
Access to clean, reliable and affordable energy is one
of the key challenges for many countries in Sub-Saha-
ran Africa. This is particularly the case in rural and
remote areas which are often not connected to the
national main grid. Mini-grids are expected to play
an important role in providing access to sustainable
and reliable energy in these areas. On the other hand,
this report argues that mini-grids also need to meet a
set of key requirements to become future-proof and
contribute to the achievement of the United Nations
Sustainable Development Goals (SDGs). Mini-grids
should foster the integration of renewable energies.
They should provide for equitable and affordable
electricity costs and reliable electricity supply. They
should be sensitive to the specific local context and
foster the development of productive uses. Moreover,
they should be flexible and adaptable to changing
conditions, such as new technologies, increasing
demand and the arrival of the main grid, and account
for transparency and consumer protection. Finally,
mini-grids should be designed in a way which reduces
their ecological footprint as far as possible.
Over the past years, the mini-grid sector has seen an
increase in the use of digital technologies while at the
same time d igital innovations transform the socio-
economic landscape in Sub-Saharan Africa. In light
of these developments, the report explores how dig-
ital technologies could be applied to mini-grids to
help meet the requirements mentioned above. The
study identifies two levels of application for digital
technologies in mini-grids: 1) the level of technical
functionalities and system balancing which includes
generation and storage, distribution and control as
well as demand side management; and 2) the level of
the mini-grid value chain, which includes finance,
plann ing and design, operation and maintenance,
customer management and the productive use of
electricity.
Across these application areas, digital technologies
have the potential to provide solutions that enable
more eff icient and time-saving processes, reduce
costs as well as improve services for the consumer.
However, the use of digital technologies in mini-grids
in rural Sub-Saharan Africa also poses new chal-
lenges and risks, in particular with regards to privacy
and data security, and requires a high level of aware-
ness for the creation of user-centric technologies. If
the potentials are exploited and risks mitigated, dig-
ital technologies could cont ribute to ach ievin g
future-proof mini-grids that serve sustainable devel-
opment in rural Sub-Saharan Africa. However, many
of the potentials that could unfold through the inte-
grated use of digital technologies in mini-grids have
not yet been tapped into. Technical issues, even inter-
net access, do not appear to be limiting factors for the
application of digital tech nologies in mini-gr ids.
Regulatory, economic and socio-cultural framework
conditions play a much more decisive role.
Against this backdrop, policy-makers, donor organi-
sations and technology developers should collaborate
to create favourable framework conditions and new
impetus for a purposeful use of digital technologies
in mini-grids. Amongst others, policy makers should
provide long-term plans for grid extension so that
mini-grid developers are able to evaluate the extent
to which it makes sense to incorporate digital tech-
nologies. Policy-makers should further provide incen-
tives and subsidies for projects serving the testing of
digital solutions, develop suitable regulatory frame-
works and suppor t the development of technical
standards and quality criteria. They also should
IA SS S tu dy _1
Exploring the n exus of mini-grids an d digital technologie s
2_ IAS S Stud y
develop legal frameworks for data security and con-
sumer protection. Donor organisations could con-
tribute to the meaningful use of digital technologies
in mini-grids by including technical requirements for
appropriate digital features in mini-grid tenders and
incentiv izing or even requiring that data from the
mini-grids they fund is shared. They should further
foster the collaboration between communities, inno-
vators and local researchers, and support the creation
of knowledge about the effects of digital technologies
in mini-g rids, for instanc e on costs, long-term
sustainability, consumer satisfaction and the creation
of productive uses. Lastly, companies and technology
developers should always put consumer needs at the
centre of technology development and consider the
specific local contexts. They should engage in jointly
developing standards that benefit the whole sector,
embrace using open-sou rce soft ware and sha re
thei r data and experiences from successes a nd
failures.
© CarlFourie/iStock
IA SS S tu dy _ 3
In this regard, particular emphasis will be given to
the promotion of productive uses of electricity in
rural areas. Aside from potentials, the study also
takes a critical look at possible challenges and risks of
the increasing use of ICTs in mini-grids. In this sense,
the study aims to provide a comprehensive overview
of the interlinkages of digital technologies and mini-
grids as well as their contribution to achieving the
United Nations Sustainable Development Goals
(SDGs, see Box 1).
Scope of the study
The study focuses on Sub-Saharan Africa, the region
which is still most challenged by a lack of energy
access in particular in rural and remote communities.
Since frameworks and conditions vary substantially
across Sub-Saharan Africa, Annex I of the report pro-
vides detailed factsheets on ten Sub-Saharan African
countries, namely Ethiopia, Kenya, Madagascar, Mali,
Mozambique, Nigeria, Senegal, Tanzania, Uganda and
Zambia highlighting key aspects, such as access to
electricity and internet penetration. The factsheets
also provide an overview of the countries’ rural elec-
trification status, digital development strategies and
mini-grid policies. The ten countries were selected in
order to cover a wide range of country contexts and
different levels of diffusion of mini-grids and ICTs.
Background
Access to clean, reliable and affordable energy is one
of the key challenges for many countries in Sub-Saha-
ran Africa (SSA). This is particularly the case in rural
and more remote areas which are often not con-
nected to the national main grid. For these areas,
decentralised energy technologies can provide viable
solutions for energy access. Mini-grids are expected
to gain an increasing role in this regard as they –
other than solar home systems (SHS) – not only serve
the electricity demand of small households, but also
provide enough energy for productive uses [1], for
exa mple i n manufact uring, fa rming and agro -
processing.
Over the past decade, the digitalisation trend has
entered the mini-grid sector leading to the develop-
ment of innovative approaches and technologies to
improve mini-grids and related services [2]. In paral-
lel, modern information and communication tech-
nologies (ICTs), in particular mobile phones and
smartphones, continue to spread to even remote and
rural locations in Sub-Saharan Africa opening up
new possibilitie s for productive uses of energ y
(PUE).
Objectives
Against this backdrop, this report aims to shed light
on two issues:
1) the different use cases of digital technologies
across the value chain of mini-grids, and
2) how they may assist mini-grids in meeting the
requirements of sustainable development.
1. Introduction
Box 1: A glimpse at the SDGs: Linking aordable energy
access, sustainable infrastructures and climate action
The 2030 Agenda for Sustainable Development provides essential guidelines for inter-
national efforts to foster a comprehensive, global transformation towards sustainability.
Its 17 Sustainable Development Goals (SDGs) address a broad range of topics, such as
poverty, hunger, health, water, energy, education, gender equality, reduction of inequali-
ties, economic development, biodiversity and climate action.
The topic of this study links particularly to three SDGs. It addresses SDG7 which targets
affordable and clean energy since mini-grids enable access to electricity from renewable
energy sources to some of the most vulnerable and marginalised people. In this sense,
mini-grids provide an essential infrastructure for economic development and human
well-being, a core element of SDG9. Innovative digital technologies could make these
infrastructures more sustainable and reliable and improve the services offered by them.
Furthermore, where mini-grids are powered by renewable energy sources, they not only
contribute to SDG7, but also to the implementation of SDG13 promoting climate change
mitigation.
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Exploring the n exus of mini-grids an d digital technologie s
Approach
We assume that mini-grids (see Box 2) and digital
technologies are deeply embedded in societal con-
texts which include social and cultural norms, values
and practices as well as economic, regulative, finan-
cial, i nfrastructural and policy aspects. Societal
framework conditions and human actions therefore
shape the design, production and use of technologies.
In return, technological changes and new develop-
ments also have an impact on the social system linked
to them [3]. This socio-technical approach allows a
more comprehensive look at technological solutions
and their potential oppor tunities and challenges
which, in turn, contributes to providing more sus-
tainable and socially accepted solutions [4].
Methodology
This study is based on information from three main
sources: firstly, it draws on the literature on mini-
grids and rural electrification as well as ICT for
development (ICT4D). We considered academic lit-
erature as well as repor ts and studies by lead ing
international organisations in these fields. Given the
amount of literature on the topics relevant for this
study, the literature review does not claim to be com-
plete. Nevertheless, by assessing the latest studies as
well as a broad range of publications on the afore-
mentioned topics, we have managed to gain an over-
view of the main findings and current state-of-the-art
in research on mini-grids and digital technologies in
development contexts.
Secondly, between March and May 2019, we con-
ducted 14 inter views with experts from GIZ and
UNIDO and other donor organisations as well as rep-
resentatives from companies and technology devel-
opers working on mini-grid technologies (see Annex
II). The interviews were semi-structured and adapted
to each interviewee’s individual expertise. The inter-
views served to collect information on the interlink-
ages of digital technologies and mini-grids, whilst
gaining insights into practical experiences in several
of the focal countries of this study. Amongst other
questions, the interviewees were asked how they per-
ceive the relevance of digital technologies for the
improvement of mini-grids as well as their opportu-
nities for productive uses of energy. Furthermore,
challenges and potential benefits of digital technolo-
gies in mini-grids were discussed with the experts.
Finally, we organised a workshop on 9 May 2019 in
Berlin where the preliminar y results of the study
were presented to 16 ex perts from BMZ, GIZ ,
UNIDO as well as technology developers, innovators
and other experts from the digitalisation and energy
fields. The workshop served to discuss and enrich the
findings from both the literature review as well as the
interviews conducted at this point of time. Further-
more, together with the participants, options and
recommendations for d ifferent stakeholder groups
were developed.
Structure of the report
The study is structured as follows:
Following this introduction, Chapters 2 and 3 pro-
vide basic background information on the status
quo and deployment of mini-grids as well as ICTs
in Sub-Saharan Africa.
Chapter 4 elaborates in more detail the require-
ments that mini- grids should fulfil in order to
become future-proof and contribute to the achieve-
ment of the SDGs.
Chapter 5 analyses how digital technologies can be
used to improve mini-grids across their value chain
and how ICTs could contribute to the productive
use of energy. It further discusses opportunities
and challenges, taking technical as well as socio-
economic aspects into account.
Chapter 6 draws conclusions and reflects on how
digital technologies could contribute to meeting
the aforementioned requirements for sustainable
mini-grids.
IA SS S tu dy _ 5
The Annex provides detailed profiles of the selected
focal countries and an anonymised list of interview
partners we spoke to for this study.
Chapter 7 provides options for action to make bet-
ter use of the potential synergies between mini-
grids and d igital technologies i n Sub-Sa haran
Africa. This section particularly addresses policy-
makers, donor organisations as well as companies
concerned with innovations for mini-grids and pro-
ductive uses of energy.
Box 2: What is a mini-grid?
The term mini-grid used in this study is understood as “a set of electricity generators and
possibly energy storage systems interconnected to a distribution network that supplies
electricity to a localized group of customers” [5]. The size of mini-grids usually ranges
between 10kW and 10MW. Mini-grids can operate in isolation from national electricity
transmission networks [6]. Very often, instead of “mini-grids”, the term “micro-grids” is
used. While some see a difference between these two expressions, we view them as in-
terchangeable and use the term mini-grid in this report.
© Catherina Cader, RLI
6_I A SS Stu dy
Exploring the n exus of mini-grids an d digital technologie s
2. Mini-grids for sustainable
energy access
2.1 Electricity access in Sub-Saharan Africa
Over 590 million people, more than half of the popu-
lation, are without access to electricity in Sub-Saha-
ran Africa with over 80 per cent of those living in
rural areas [1]. Figure 1 provides an overview of rural
electrification in Sub-Saharan Afr ica, highlighting
the figures for ten focal countries. Whereas the aver-
age rural electrification rate in Sub-Saharan Africa is
below 25 per cent, this rate lies at approximately
71 per cent in urban areas [1]. Removing this rural-
urban divide is challenging, as the dominant electrifi-
cation strategy – extending the national grid – is not
always suitable to reach remote and sparsely popu-
lated r ural communities [7 – 10]. Here, public and
private actors alike encounter a host of physical,
financial, regulatory and technical challenges which
hinder grid extension.
Figure 1:
Rural electricity access
map (201 6)
Source : Own figure based
on IEA , Energy Access
Outlook 2017 [1] .
Legend
Countr y not considered
Below 10 %
10 – 25 %
26 – 50 %
Above 50 %
Focal Country
Rural elec trification rate
Total population
without access
Zambi a
6.5 %
11.1 mi llion
Niger ia
34.1 %
73.6 m illion
Seneg al
43. 5 %
5.6 mi llion
Mali
6.4 %
10.8 m illion
Madagasca r
6.9 %
19. 2 million
Mozam bique
14.7 %
20.5 m illion
Tanzani a
17.1 %
37.1 million
Ugan da
18. 6 %
32.5 m illion
Kenya
59.7 %
16. 8 millio n
Ethio pia
29.2 %
60.7 mil lion
IA SS S tu dy _7
Next to the challenges of extending the grid, the cen-
tral power supply has severe reliability issues in most
Sub-Saharan African countries. Since much of the
infrastructure is old, badly maintained and in need of
new investment, many areas suffer from frequent and
long power outages. Public utilities often struggle to
work cost efficiently and consumer tariffs need to be
subsidised to remain affordable [12]. Due to the chal-
lenges of conventional electrification through grid
extension, rural households and businesses often
remain u n-elect rified and dep end on traditional
energy sources (e.g. firewood or kerosene lamps) or
expensive and polluting small-scale diesel generators.
In contrast, a shift towards off-grid electrification,
e.g. through solar home systems and mini-grids based
on renewable energ y technologies, opens up new
opportunities for cheaper, faster and cleaner electrifi-
cation [13].
2.2 Mini-grid deployment in
Sub-Saharan Africa
Due to falling photovoltaic (PV) and battery prices in
the last years, solar-based and hybrid mini-grids have
become a promising new option for energy access in
rural and remote areas. In a policy scenario for Sub-
Saharan Africa developed by the International
Energy Agency (IEA) in 2014 [14], it was estimated
that up to 140 million rural inhabitants may be serv-
iced by min i-grids by 2040 necessitating t he
deployment of between 100,000 and 200,000 mini-
grids. Numerous countries in Sub-Saharan Africa
have integrated off-grid renewable energ y solutions
into their national electrification strategies and mini-
grids have been piloted and deployed across the
region. However, the prevalence of mini-grids in Sub-
Saharan Africa differs largely from country to coun-
try. For instance, in a study on mini-grids in the
Economic Commun ity of West Afric an States
(ECOWAS), the number of m ini-grids reported in
different countries ranged from below 5 in some
countries to over 100 in others [15]. Whilst these
numbers are dynamic and constantly changing, they
also highlight how differences in demand, infrastruc-
ture and regulatory frameworks influence the diffu-
sion of mini-grids. In the cases of Senegal and Mali –
where mini-grids seem to be more prevalent – both
governments set up initiatives to support off-grid
solutions already over a decade ago [15]. In Kenya, it is
estimated that if recommended regulatory changes
are implemented, the number of mini-grids could
reach 2,000 to 3,000 by 2021 [16]. As another exam-
ple, due to recent policy changes the mini-grid sector
in Nigeria is growing with the country being seen as
having a high potential for the large-scale deploy-
ment of mini-grids in the future [17].
2.3 Challenges for mini-grids
Despite increasingly favourable conditions for mini-
grids, there remain a number of obstacles. First of all,
the deployment of mini-grids is still largely donor-
driven or dependent on subsidies. Moreover, it
strongly depends on countries’ regulatory environ-
ments [18]. According to the World Bank’s Regula-
tory Indicators for Sustainability (RISE) scorecard,
Sub-Saharan Africa is the region with the weakest
regulatory environment with half of the countries
deemed to have an underdeveloped policy framework
and only one countr y, South Africa, with a more
advanced one [19]. The lack of a clear policy environ-
ment, however, heightens uncer tainty and deters
private investments [20].
A further key issue for the long-term viability of a
min i-grid concer ns the question of whether a nd
when the national grid will arrive in a given area.
Since consumers tend to prefer to be serviced by the
central electricity grid due to lower costs and higher
trust in the quality of the service provided, there is
the possibility that a previously installed mini-grid
may become a stra nded asset once the main grid
reaches a community.
Besides, there remain technical difficulties associated
with setting up and maintaining mini-grids in rural
areas in the long run, also in light of consumer pro-
tection. The initial deployment of mini-grid solutions
requires a high amount of technical expertise which
is often provided by external actors due to a lack of
capacity and knowledge on the local level [9]. There-
fore, once the mini-grid is set up, communities are
commonly still reliant on external repair and mainte-
nance ser vices which, given their often remote loca-
tion, leads to significant delays. Technical failures,
often due to inadequate maintenance and a lack of
Exploring the n exus of mini-grids an d digital technologie s
8_IA SS S tu dy
plans for national grid expansion. Further enablers
for the successful implementation of mini-grid pro-
jects are the thorough consideration of the specific
needs and aspirations of the affected communities as
well as reliable information about their actual and
futu re electricity demand. Finally, mini-grids also
need agreed techn ical standards and cert ification
mechanisms to ensure cer tain safety and qual ity
levels – an important element guaranteeing the social
acceptance and backing of rural populations.
qualit y of components, is a common fate for many
mini-grids in Sub-Saharan Africa. Flawed technical
and safety standards and the resulting technology
failures decrease trust on the side of the consumers.
Quality assurance for mini-grids is therefore a central
issue for their long-term sustainability [21].
In summary, mini-grids need favourable and reliable
national regulations, adequate incentives and subsi-
dies as well as reliable information on the long-term
Box 3: Environmental challenges of mini-grids
Adequate end-of-life management of mini-grids still poses a significant challenge to the
environmental sustainability of mini-grids. Mini-grids powered by renewable energy are
considered a climate-neutral technology, but of course, the production and disposal of
the relevant equipment – from cables to switchboards to solar panels – has an ecological
footprint. Mini-grid equipment may fail, in many cases due to a lack of proper mainte-
nance, and is often improperly disposed, risking adverse health effects for people and the
emission of environmentally harmful substances. Especially batteries should be disposed
adequately [22]. Proper end-of-life management is therefore a key component of sustain-
able mini-grid solutions.
© Catherina Cader, RLI
IA SS S tu dy _ 9
Deep read: Favourable framework conditions for mini-grids are still a major
challenge. A broad range of publications addresses this issue in-depth. For ex-
ample, the 2018 study of IRENA “Policies and regulations for renewable energy
mini-grids“ [20] explores elements of enabling environments and policy measures for mini-
grids and discusses them on the basis of eight case studies of countries in Sub-Saharan
Africa, Asia and Latin America. The report “Accelerating Mini-Grid Deployment in Sub-Sa-
haran Africa: Lessons from Tanzania” [23] published by the World Resources Institute and
TaTEDO in 2017 looks at one specific country-context and formulates recommendations
that could also be useful for other Sub-Saharan countries. The 2018 report “Tariff consider-
ations for micro-grids in Sub-Saharan Africa” [24], published by USAID, Power Africa and
NREL, takes a deep dive into the issue of adequate tariff setting in mini-grids. The Mini-
Grid Policy Toolkit Portal [25] furthermore provides a comprehensive collection of policy
examples, case studies and support tools to make mini-grids more attractive.
IRENA (2018): Policies and regulations fo r renewable mini- grids. Abu Dhabi.
Odarn o, Lily et a l. (2017): Accelerating Mini-Grid Deployment in Sub-Sah aran Africa.
Lessons from Tanzania . World Ban k. Washington, D.C .
Reber, Tim et al. (2018): Tariff co nsiderations for micro- grids in Sub-Saharan Africa. USAID,
Power Africa, NR EL.
EU Energy Initiative Partnership Dialogue Facil ity (EU EI PDF ): Mini -Grid Policy Toolkit.
Available o nline at http://www.minigridpolicytoolkit. euei-pdf.org.
capital in rural areas also limits entrepreneurs in
upscaling their activities [7,32]. Structural factors
including poor market access and susceptibility to
climate-induced shocks such as droughts and crop
failures furthermore exacerbate people’s reluctance
to invest in expanding and automating their income-
generating activities.
Furthermore, a lack of understanding of the lifestyles
and habits of the local population may lead to inter-
ventions which are not alig ned with communities’
interests and preferences [33]. This can undermine
the success and functioning of mini-grids including
the productive use of energy due to a lack of trust and
acceptance of new technologies in communities. It
has also been shown that limited knowledge of the
local context could lead to interventions which exac-
erbate ex isti ng ineq ualitie s and conf licts. For
instance, one prevalent issue is that often only
wealthier groups are in a position to benefit from the
provision of electricity services. It has also been
shown that the positive effects of electrification in
rural areas are often split unevenly between women
and men (see Box 4).
2.4 Productive use and community
engagement
Gaining access to electricity is often assumed to lead
to the productive use of energy which, in turn, boosts
people’s businesses and income-generating activities
[26 – 28]. In the context of Sub-Saharan Africa, where
the main livelihood activity is farming [29], productive
use of energy particularly includes the automation of
work processes such as milling and irrigation [30] –
whilst also enabling the use of machinery and tools to
enhance productivity and efficiency. Outside of the
agricultural sector, people can benefit from lighting
to, for instance, keep their shops open longer whilst
also offering electrified services such as printing.
However, productive use should not be seen as an
inevitable outcome of electrification. In a number of
studies, it has been shown that consumers may prefer
to use electricity for household lighting, entertain-
ment and communication [31]. In many contexts, a
lack of business skills and awareness of how to opti-
mise work processes through electrification hinder
productive use, whereas limited access to financial
10 _ IAS S St ud y
Exploring the n exus of mini-grids an d digital technologie s
and acceptance and enable the design of an interven-
tion which responds to the needs of the community.
This is not only relevant for local social and cultural
issues. It also gives planners and implementing actors
a better picture of the type of financing schemes,
technical design, educational interventions and sup-
port for productive uses which are needed to make
the project successful.
Accordingly, the prior analysis of such potential risks
and challenges, the identification of specific priorities
of the affected communities as well as the formula-
tion of strategies and mechanisms to account for
these need to be part of the design and deployment of
mini-grids in rural Sub-Saharan Africa. Including
community members early in the design and imple-
mentation phases of mini-grids can enhance trust
Box 4: Considering gender issues in mini-grids
Empowering women is a common objective of many rural electrification projects. Yet,
there exist only few studies that empirically analyse the effects of rural electrification
interventions on gender issues [34], even less take a specific look at the impacts of mini-
grids. A study on the implications of electricity access for women’s empowerment in
rural Kenya found out that interventions, even if taking a gender-neutral approach, often
produce systems dominated by men and reproduce gender stereotypes, such as women
caring for households while men engaging in productive work [35]. The study suggests
that centring on women’s needs, participation and leadership in rural electrification proc-
esses could increase the likelihood of success of the intervention and strengthen benefits
for the whole community. In another recent study [36] evaluating a solar mini-grid that
had been set up in Mpanta in rural northern Zambia, it was found that electrification has
different impacts on women and men and may even exacerbate inequality. Especially
if decision-making procedures are dominated by men, the way in which a mini-grid is set
up is likely to corresponded more to male preferences than to those held by women in a
community.
In conclusion, electrification projects cannot be assumed to automatically enhance gen-
der equality and women’s empowerment. They should therefore be aware of possible
gender divides and be accompanied with specific interventions aimed at addressing gen-
der issues already during the design and implementation phases.
IA SS S tu dy _1 1
© KDN759/Shutterstock
12 _ IAS S St ud y
Exploring the n exus of mini-grids an d digital technologie s
3. ICTs and digital
development in
Sub-Saharan Africa
3.1 Digital change in Sub -Saharan Africa
In the late 1990s, many African countries started to for-
mulate national ICT strategies. These strategies were
particularly centred on the development of adequate
telecommunication infrastructures, the improvement
of education and training as well as the promotion of
economic opportunities from ICTs to participate in
global knowledge economies. Furthermore, they aimed
at decreasing inequalities and improving ICT access
and skills of marginalised groups, such as young people,
the rural poor and women [34].
Over the past decade, ICT policies gained traction
amid the increasing importance of the internet, its
easy accessibility through smart phones, the use of
apps as well as technological advances in areas such
as big data and artificial intelligence. Digital transfor-
mation has in many Sub-Saharan African countries
become a central issue for national socio-economic
development. This goes along with a focus on provid-
ing more suitable framework conditions not only for
the development of digital skills, but also for digital
innovations. Creating a favourable ecosystem for
innovative tech start-ups, e.g. through suitable legisla-
tion, financial incentives and funding opportunities
has therefore become an important aspect in national
ICT and digital development strategies in many Sub-
Saharan African countries. This can also be seen in
the flourishing of technology hubs and co-working
spaces in countries like Kenya, Uganda, Nigeria,
Senegal and Ghana [42].
3.2 ICT adoption and prices
Today, mobile phones are commonly used through-
out the region. According to a report by GSMA,
the number of unique mobile subscribers totalled
444 million in 2017 which amounts to 44 percent of
the population in the region [37]. By 2025, this
number is expected to rise to 634 million which
would represent 52 percent of the population [37].
One major dr iver of this development concerns
decreasing prices for mobile phones and telecommu-
nication services. For example, between 2008 and
2016, the mobile-cellular basket price of the ITU
decreased to 3.8 USD which is less than the world
average and one of the lowest prices worldwide [38].
The number of smartphones, despite being more
costly, is also growing strongly. By the end of 2017, it
has already reached 250 million and is likely to double
by 2025 [37]. Computers, on the other hand, are not
widely used in Sub-Saharan Africa. Only an 8.8 per-
cent of households in Africa owned a computer in 2017,
compared to the world average of 46.9 percent [39].
With regard to the internet, the region is still largely
disconnected. Between 2013 and 2017, the number of
people using the internet almost doubled and reached
22.1 percent of the population [39] (see also Figure2).
Still, this is less than half of the world average of
48.6 percent [39].
According to the International Telecommunication
Union (ITU ), broadband i nternet is sti ll costly
although prices have decreased in the past years [38].
Significant price reductions in a number of A frican
countries contributed to an overall regional down-
ward trend in fixed broadband prices. Yet the region
still ranges highest worldwide, both in absolute and
relative terms [38]. Prices for mobile broadband, on
the other side, lie below the world average at 8 USD
for the prepaid handset-based and 15 USD for the
postpaid computer-based sub-basket [38]. However,
it is noteworthy that the minimum and maximum
prices in the region are far apart [38].
3.3 Economic, social and ecological
impacts of ICTs
Modern ICTs are perceived as having a positive influ-
ence on the socio-economic development of rural
communities. For example, ICTs prov ide access to
market information for farmers and allow a comfort-
able and quick exchange between businesses and
their customers, whilst also providing access to infor-
mation that can help to improve services and goods.
Furthermore, applications for mobile payments, for
example M-Pesa, enable the economic integration of
individuals without a bank account which is a wide-
spread challenge in Sub-Saharan Africa.
However, despite these manifold positive practical
examples, the scientific literature is inconclusive with
regard to the social and economic effects of ICTs and
their role in decreasing inequalities [40]. Similar to
energy access technologies, ICTs do not automati-
cal ly generate an added b enefit for their users.
Indeed, there are indications that ICTs and internet
connectivit y could increase ex isting inequa lities
which often exist along socio-economic groups with
regard to gender, age and education [41]. ICTs there-
fore need to be assessed within their social setting as
they may amplify existing divides. Being aware of
such potential adverse effects is decisive for the use of
ICTs in the context of development projects [42].
In addition, national regulations also affect the extent
to which modern ICTs can be used for economic pur-
poses. For example, mobile money services such as
pay-as-you-go (PAYG) solutions for energy access are
much more prevalent in Eastern Africa, than in many
West African states (see Figure 3) [43]. One impor-
tant reason for this difference is that many East Afri-
can countries have more favourable regulatory condi-
tions with lower entr y barr iers and r isks for
companies providing such services.
The increasing spread of digital services and business
models f urther necessitates regulations for the pro-
tection of data and privacy of consumers and users of
ICTs and related services. As of March 2019, 17 Sub-
Saharan African countries have enacted data protec-
tion laws whereas seven were in the process of draft-
ing and nine had no legislation in place [44]. In 2014,
the African Union adopted the Convention on Cyber
Security and Personal Data Protection which how-
IA SS S tu dy _1 3
Figure 2:
Countries where less than
20 % of the p opula tion use
the int ernet (2017)
Source : Own figure based
on World Devel opment
Indicators (WDI), World
Bank [ 11].
Legend
Countr y not considered
Below 20 %
20 % and above
ever has so far only been signed and ratified by a
small number of Sub-Saharan African countries [45].
On the regional level, there are several initiatives
working towards data protection, for example a mode
law developed by the Southern African Development
Community (SADC) which includes data protection
or a supplementary act on personal data protection
put together by the Economic Community of West
African States (ECOWAS) [45].
Last but not least, ICTs have a considerable ecological
impact. In particular the extraction and processing of
resources for ICTs and the manufacturing and assem-
blage of components play a decisive role in the emis-
sion of greenhouse gases related to ICTs [46]. Coun-
tries in Sub-Saharan Africa which provide essential
resources for the production of digital technologies do
not only bear the ecological, but also the heavy social
burdens of irresponsible and unsustainable raw mate-
rial extraction. Moreover, e-waste – both exported to
as well as produced in Sub-Saharan African countries
– becomes a mounting challenge. In 2016, Africa
(including North Africa) was accountable for 2.2 mil-
lion metric tons of e-waste [47]. However, with 1.9 kg
of e-waste generated annually per inhabitant, Africa
ranges well below the global average of 6.1 kg per
inhabitant [47]. The disposal of e-waste is largely left to
the informal sector, creating enormous health risks as
well as social and environmental challenges [48,49].
While the recovery of precious metals such as gold,
silver and palladium could present itself as an oppor-
tunity, African governments are often overburdened
by ensuring adequate e-waste regulation and its
enforcement and struggle with a lack of financial
means and the provision of incentives for proper
e-waste treatment. Still, awareness for this topic is
growing across Sub-Saharan Africa with countries
like Ghana, Kenya, Nigeria and South Africa spear-
heading the development of legislation in the region
[47].
Against this backdrop, the development and imple-
mentation of ICT interventions need careful consid-
eration and responsible action, especially in develop-
ment contexts and when addressing marginalised
and vulnerable people (see Box 5).
Exploring the n exus of mini-grids an d digital technologie s
14 _ IAS S St ud y
Figure 3:
Mobile money account
penet ration in Sub-
Saharan Africa (2017)
Source : Own figure based
on World Devel opment
Indicators (WDI), World
Bank [ 11].
Due to a lack of availability,
the data for Somalia and
Burundi are taken from the
year 2014 .
Legend
Countr y not considered
or no data
Below 10 %
10 – 19 %
20 – 29 %
30 – 39 %
40 – 49 %
50 % and above
Box 5: Principles for Digital Development
Based on their rich practical experiences from ICT interventions, a broad range of mem-
bers of the international development community have developed nine Principles for
Digital Development [50]. These principles are intended to strengthen the benefits of
ICT projects for the affected individuals and communities while mitigating potential
adverse effects and risks. Among others, they highlight the need for a user-centric
design of ICT projects which pays attention to the specific local contexts. Furthermore,
the principles underscore the importance of issues like data security and privacy and
emphasise that ICT systems should be built in a sustainable way, meaning that they
continue to function reliably and provide benefits to their users even after the official end
of the intervention. Furthermore, the Principles for Digital Development promote the use
of open software and the sharing of experiences and data.
3.4 Challenges for rural connectivity
Similar to electricity infrastructure, the costs for tel-
ecommunication services are mediated by factors
such as location and distance from urban centres as
well as population density and the nature of the ter-
rain. While many urban areas in Sub-Saharan Africa
today have relatively well established telecommunica-
tion infrastructures, including broadband internet
access, remote and rural areas often remain unders-
erved. In developing countries, mobile networks are
therefore frequently used to provide digital infra-
structures to disconnected areas [31]. Still, a signifi-
cant digital gap remains between urban and rural
areas. Many Sub-Saharan African countries have set
up Universal Access and Service Funds ( UASFs) to
finance the extension of telecommunication services
to underser ved communities. However, with the
increasing relevance of broadband, these funds face
many chal lenges in a new rapidly developing and
complex environment [32].
On the u ser level, the affordability of ICTs stil l
remains a challenge. Mobile-cellular prices as a per-
centage of GNI per capita decreased from 28 percent
to 9 percent between 2008 and 2016 [30]. Yet, this is
still three times the world average. Similarly, the price
of broadband in Africa is far above the world average.
In Africa, the prepaid handset-based mobile-broad-
band sub-basket calculated by the ITU reaches 8 per
cent of GNI per capita whereas in the rest of the
world the value is below 5 percent [30]. In terms of
fixed broadband, only six countries in the region offer
plans that represent 5 percent of GNI per capita or
less [30]. The affordability of the internet therefore
still p oses a major challenge, especially for low-
income and often rural populations. It therefore
contributes significantly to the digital divide within
Sub-Saharan African countries.
Aside from infrastructu ral gaps and affordabilit y
challenges, connectivity faces high social and cultural
obstacles in rural areas. Literacy rates are often sig-
nificantly lower than in urban areas whereas access
to education and training is limited. These factors
hamper the adoption of ICTs and their application for
productive uses. Furthermore, only a limited amount
of content on the internet is provided in local lan-
guages [51] and even less specifically targets rural
populations, thus limiting the value that people gain
from ICTs and the internet.
IA SS S tu dy _1 5
4. Requirements for
sustainable mini-grids
Renewable mini-grids offer various opportunities to
improve r ural livelihoods in Sub-Saharan Africa .
Although scaling up this technology is generally
desirable, it is also clear that mini-grid projects are
inev itably confronted with numerous econom ic,
social and environmental challenges as outl ined
above (see Chapter 2.3). Next to challenges w ith
regards to suitable framework conditions, mini-grids
also need to meet certain expectations in order to
become future-proof. From the interviews and dis-
cussions held with various stakeholders and experts
over the course of this study, a normative catalogue
of essential characteristics was developed. It contains
conditions and requirements which need to be ful-
filled by mini-grids in order to support the implemen-
tation of the UN SDGs, in particular SDGs 7, 9 and 13:
1) Mini-grids should be powered by renew-
able energy sources. The guiding principle
for planning new mini-grid projects should be that
only renewable energy sources (e.g. solar, wind,
hydro) are considered for electricity generation.
When older, existing mini-grids with diesel gen-
erators are retrofitted with renewable energies
(“hybridisation”). The design needs to increase the
renewable share to the highest extent possible.
2) Mini-grids should account for the spe-
cific socio-economic context. Mini-grids
must be tailored to the (often harsh) operation
conditions in rural areas in Sub-Saharan Africa.
Therefore, technology and operational manage-
ment must be state-of-the-art and designed to
serve specific user needs. This necessitates com-
munity engagement dur ing the plan ning a nd
design phase. Besides, electrical safety standards
need to be respected. The implementation of
technological improvements should be possible
with reasonable effort.
3) Mini-grids should enable equitable and
aordable electricity costs. Mini-grids gen-
erally need to be designed in a cost-efficient man-
ner whereby the average cost of electricity needs
to be as low as possible. All consumers should pay
an equitable (and potential ly also a temporally
variable) electricity price for the electricity sup-
plied by the mini-grid. Power producers and oper-
ators should likew ise receive an equitable and
temporally variable remuneration for the electric-
ity fed into the mini-grid.
4) Mini-grids should provide reliable elec-
tricity supply. High reliability and quality in
power supply are essential requirements for mini-
grids. Ultimately, a 24/7 power supply without
voltage and frequency fluctuations should be tar-
geted to supply not only households, but also pro-
ductive user (cf. 5). The reliability of decentral
electricity supply can be an important competi-
tive advantage compared to the central grid sys-
tem where power outages are a frequent problem
in many Sub-Saharan African countries.
5) Mini- grids should be oriented towards
productive uses. Mini-grids, especially in the
context of Sub-Saharan Africa, are more than just
a means to satisfy the electricity demand of
households. They should encourage the develop-
ment of new businesses and economic activities
in agricultu re, manufacturing, commerce and
services and thereby increase the economic wel-
fare of a community. From the outset, planners
should always consider this and orient system siz-
ing and design towards the potential productive
use of consumers.
16 _IA SS S tu dy
Exploring the n exus of mini-grids an d digital technologie s
IA SS S tu dy _1 7
6) Mini-grids should adapt to new condi-
tions.
Mini-grids should be designed to allow if
not even promote a f lexible, dema nd-dr iven
expansion at later stages. For this purpose, there
need to be uni form interfaces and equitable
access to the grid with all network participants
having the same rights and obligations to operate
and expand their capacity. Furthermore, mini-
grids should enable new modes of interaction
within the grid by, for instance, allowing electric-
ity consumers to also act as producers and thus
“prosumers”. Furthermore, the mini-grid design
should allow for the possibility to connect to the
public power grid at any time so that potential
investors are not deterred by a possible futu re
arrival of the main grid.
7) Mini-grids should guarantee transpar-
ency and consumer protection. All rele-
vant operational data (technical and commercial)
should be automatically recorded and clearly doc-
umented. At the same time, it is essential that
individuals’ data privacy is protected and that the
data is adequately accessible for consumers. For
the latter point, it would for instance be desirable
to provide the information in the local language.
Economic decisions, for instance tariff setting,
need to be communicated in a transparent man-
ner whereas payment systems should also be
transparent, traceable and user-friendly. An inde-
pendent arbitration entity should be set up to set-
tle potential disputes.
8) Mini-grids should minimise their ecolog-
ical footprint. Mini-grids should generally be
designed for a long ser vice life. For the selection
of key components, quality and ecological criteria
need to be applied. Mini-grid projects must also
include a recycling concept and provisions for the
avoidance of electronic waste.
Against the backdrop of this list of requirements, it is
relevant to consider which role digital technologies
could play in achieving them. Before diving into this
issue, Chapter 5 outlines the various applications of
ICTs throughout the value chain of mini-grids.
© Dorothea Otremba, GIZ
For decades, ICTs have been used to improve energy
systems with the energy sector often acting as an
early adopter of new information technologies [52]. In
the past years, digital innovations (e.g. in the field of
artificial intelligence and big data), advances in com-
puting as well as the reduction of costs for digital
technologies have opened up new possibilities for the
digitalisation of the energy sector. In par ticular the
creation and analysis of vast amounts of data as well
as the con nection of different “smar t” devices to
become an internet of things (IoT) promote the idea
of a more flexible and efficiently manageable energy
system. Such a system would also be better suited to
handle increasing complexity, especially regarding
the integration of renewable energy sources and mul-
tiple, often small renewable energy producers [53].
The implementation of mini-grids based on renewa-
ble energies in Sub-Saharan Africa provides a poten-
tial application area for digital technologies. Mini-
grids, especially those being powered by intermittent
renewable sources, require smart and digital tech-
nologies to balance electricity demand and supply
and to ensure an efficient system operation. In addi-
tion, digital innovations can address other challenges
by for instance optimising project development proc-
esses, improving the design and planning of mini-
grids as well as improving maintenance, management
and customer related processes. Furthermore, the
integration of digital technologies in mini-grids could
contribute to the development and promotion of pro-
ductive uses of energy.
18 _IA S S S tu dy
Exploring the n exus of mini-grids an d digital technologie s
5. Applications of digital
technologies in mini-grids
Figure 4 illustrates the application areas where digital
innovations may provide added value for mini-grids.
Overall, two levels of application can be distin-
guished which include different sub-categories:
1) Technical functionalities and system balancing,
including
Generation and storage
Distribution and control
Demand side management
2) Applications on the level of the mini-grid value
chain such as
Finance
Planning and design
Operation and maintenance
Customer management
Productive use of energy from mini-grids.
In the following, we will discuss each category, start-
ing with the level of digital technologies for system
functionalities and balancing as the underlying tech-
nical substructure of mini-grids.
Mobile payments
Smart contracts
P2P electricity
sharing
SMS/smartphone
VALUE CHAIN
SYSTEM
FUNCTIONALITIES &
BALANCING
FINANCE
PLANNING &
DESIGN
OPERATION &
MAINTE-
NANCE
CUSTOMER
MANAGE-
MENT
PRODUCTIVE
USE
DEMAND
SIDE
MANAGEMENT
DISTRIBUTION &
CONTROL
GENERATION &
STORAGE
Crowdfunding
Solar coins
Geospatial
portfolio planning
Drone imaging
Demand
estimation with
AI and GIS
Design software
Smart
maintenance
Cloud-based
management
platforms
Internet cafés
Telecom
equipment
Telephone
charging
E-learning services
Smart meters
Demand
limiting devices
Smart appliances
Demand forecast
Remote
monitoring
SCADA/IoT
Forecasting
algorithms
Intelligent battery
management
Optimal hybrid
operation
IA SS S tu dy _1 9
Figure 4:
Application areas of
digital technologies in
mini-grid s
Source : Own figure.
in combination with batteries could further improve
the control of the generator and thus provide not
only power but also system stability services.
The use of renewable energy in mini-grids increases
the complexity of the systems. Smart mini-grid con-
trollers can ha ndle not only u ncertainty on the
demand side but also on the supply side. They help to
maximise the utilisation of renewable resources and
keep fossil fuel consumption low, e.g. in diesel hybrid
systems.
Distribution and control
Digital technologies enable a better control of the dis-
tribution grid and power distribution to the consum-
ers. Real-time management of grid parameters, such
as voltage, frequency, active and reactive power flows,
as well as the detection of failures can be improved
with the help of distributed sensors placed at various
points of the system. These include transformers,
busbars, switchgears and distribution panels. Moreo-
ver, digital technologies for distribution and control
could also enable flexible switching between electric-
ity supply from the mini-grid and supply from the
main grid (in cases where the mini-grid is connected
to the national grid).
In a wider sense, smart meters and even intelligent
appliances (see next section) also become part of this
network of intercommunicating IoT devices. Next
gener ation system control and d ata acqu isition
(SCADA) allow for real-time processing of these data
and may be possibly assisted by remote management
platforms or cloud-based monitoring systems [8] (see
also Chapter 5.4).
5.1 Digital technologies for system
functionalities and balancing of
mini-grids
In terms of system functionalities and balancing,
digital technologies help to optimise the key techni-
cal operations of the system, mainly by improving the
balancing of generation, storage, distribution and
consumption of electricity (“supply-demand-manage-
ment”). Like all power systems, mini-grids must
ensure that electricity generation equals demand at
any moment of time. In “traditional” mini-grids this
power balancing is performed by a central generator
(e.g. diesel generator) whose output simply follows
the electricit y load of the users. With the t rend
towards more and more decentralised and intermit-
tent renewable generation, battery storage and poten-
tially even prosumers becoming constituents of mini-
grids, the balancing challenge has grown to become a
complex optimisation problem. Smart digital tech-
nologies are the means to address this challenge.
Generation and storage
There are several ways how the generation and stor-
age system of mini-grids can be made “smart” with
digital technologies. Mini-grids that are mainly pow-
ered by intermittent renewable generation technolo-
gies (e.g. photovoltaic generators, wind turbines) can
for instance profit from weather forecasting algo-
rithms based on numerical prediction models. These
can be treated by the energy management system to
compute power generation forecasts, enabling the
mini-grid controller to automatically optim ise the
use of battery storage and/or the deployment of die-
sel generators in hybrid systems [55]. Smart inverters
Deep read: The “Innovation Outlook: Renewable Mini-grids” [54], published
by IRENA in 2016 provides a comprehensive overview of technology develop-
ments in renewable mini-grids. It explores trends and developments in areas
such as planning and design, generation, storage, control and management as well as
consumption and discusses how these could enable faster commercialisation and large-
scale deployment of renewable mini-grids. The study furthermore provides recommen-
dations for key players to drive innovation in mini-grids.
IRENA (2016), Innovation Out look: Renewable Mini- grids, International Renewable Energy Agency,
Abu Dhabi.
20 _ IA S S Stud y
Exploring the n exus of mini-grids an d digital technologie s
The final aspect of demand side management concerns
electricity load forecasting which is equivalent to power
generation forecasts (see section “Generation and stor-
age”). Forecasting methods, based on artificial neuronal
networks (ANN) and fuzzy logic algorithms learning
from customer behaviour have been discussed to a cer-
tain extent in scientific research on mini-grids [55,62],
but it is unclear whether any field tests, especially in
Sub-Saharan Africa, have ever been performed.
5.2 Digital technologies for financing
mini-grids
Key components of financing mini-grids include rais-
ing investment capital and reducing investors’ risks.
Regarding de-risking, digital technologies can play a
crucial role by increasing the transparency of project
development and assessment processes which, in turn,
ultimately leads to lower investment risks for external
parties. In addition, the massive amount of data cre-
ated on potential mini-grid sites, resource availability
and customers’ ability to pay allows for a more efficient
remote assessment of the financial viability of projects.
Digital technologies could also provide new possibili-
ties for raising funds for mini-grids. In recent years,
several initiatives have financed mini-grids through
crowd-funding campaigns via online platforms such
as Bettervest [63], Ecoligo [64] or Crowd4Climate
[65]. While crowd-funding campaigns can be helpful
in covering the high initial costs of mini-grids, there
is little known about how the long-term financial
challenges of mini-grids may be resolved by these ini-
tiatives. For example, it is unclear how they address
the potential gap between the actual costs of provid-
ing electricity through a mi ni-grid and the often
limited ability of customers to pay for the services.
Several approaches for financing energy access have
further evolved with the emergence of distributed
ledger or blockchain technology (see Box 6) and the
possibility to issue tokens in exchange for renewable
energy generation. Examples in this area include Solar-
Coin [66], The Sun Protocol [67] as well as XiWatt [68].
These solutions provide an innovative approach in link-
ing digital assets and financial assets with social assets.
However, they often face a lack of understanding and
confidence from the side of regulators and donor organ-
isations and are therefore still a niche development.
Demand side management
Another important aspect of a mini-grid’s system
functionality concerns IT-assisted demand side man-
agement. Managing the demand of household con-
sumers, small and medium enterprises, or community-
operated equipment for productive use, like grain mills
or water-pumping facilities, can significantly improve
the technological and economic performance of mini-
grids. One enabler for smart, IT-assisted demand side
management could be flexible tariffs, i.e. electricity
prices that continuously change throughout the day
according to algorithms assessing the current energy
status of the system. The idea is that these price sig-
nals would incentivise consumers to shift their power
consumption to hours of the day, where enough
energy is available. Such smart management could
reduce stress on the system, and increase the life-span
of essential and important components of the mini-
grid, in particular batteries by improving their charg-
ing cycles, and thus reduce costs [56]. Advanced smart
meters are capable of limiting the power consumption
of users as a function of user priority and the available
energy of the overall system. Examples of technology
providers of smart meters for mini-grid demand side
management include INENSUS [57], Powerhive [58],
Circutor [59] and EarthSpark International [60]. Espe-
cially in rural contexts, however, such technologies
must ensure that they fit the needs and capacities of
the users to gain their acceptance [56]. In the case of
peer-to-peer electricity sharing (see Chapter 5 .4),
smart meters can also be used to promote electricity
trade among distributed prosumers.
Another aspect of demand side management includes
household appliances. Household appliances are get-
ting more and more attention by developers of mini-
grids as energ y efficiency is a key issue in rural elec-
trification. For instance, t he i nternet platform
Efficiency for Access [61] provides an inventory of
energy-efficient appliances for rural areas. In theory,
all devices with smart grid access could become part
of an intel ligent mini-grid control regime which
remotely controls their loads to match renewable
generation. However, experts have identified only a
few examples – concerning for instance high-level
devices such as freezing units – where it would make
(economic) sense to integrate appliances with com-
munication functions into mini-grids [8].
IA SS S tu dy _ 21
5.3 Digital technologies for the planning
and design of mini-grids
Digital technologies come into play at various stages
of the planning and design processes of mini-grids.
For instance, geospatial portfolio planning, based on
satellite data, digital maps and image recognition,
helps to identify locations suitable for electrification
through mini-grids [70] (see Box 7). Such planning
tools are usually used for site identi fication and
macro-planning on the regional or even national
level. They may furthermore help to avoid the setting
up of mini-grids in areas which may soon be serviced
by the national grid and speed up the planning and
design processes [71]. The US-based company Power-
hive [58] is an example of a mini-grid provider which
makes use of geospatial planning tools.
However, even when using such tools, mini-grid pro-
viders are often still faced with the challenge that
there is a lack of available and affordable high-quality
data [72]. In particular granular socio-economic data,
concerning for instance customers’ ability to pay or
the location of facilities and small businesses, often
still needs to be gathered manually which can be both
time-consuming and resource-intensive [72,73]. To
counter this issue and obtain useful data, there have
also been attempts to use drone-image assisted plan-
ning. The French company ENGIE developed a tool
called Taos.ai [74] which uses such an approach to
generate optimised mini-grid designs. Drone or high
resolution satellite images are processed to identify
locations of future customers and to optimally plan
the distribution grid and connection rates. In prac-
tice, however, there still appears to be a mix between
digital and conventional data collection methods for
mini-grid planning and design [72].
In addition, self-learning algorithms support the
demand and load estimation and even anticipate the
customers’ willingness to pay during project design,
thereby assisting conventional mini-grid planning
software, such as HOMER [75], in the sizing of the gen-
eration system and the distribution grid. Digitalisation
can work towards more holistic planning, where site
identification, demand estimation (including big data
24 _ IA S S S tud y
Exploring the n exus of mini-grids an d digital technologie s
Box 6: A glimpse at blockchain technology
Blockchain or distributed ledger technologies (DLT) have received wide attention in re-
cent years as an innovative solution to provide a reliable, incorruptible, decentralised da-
tabase that allows transactions between individuals who do not know and therefore do
not trust each other. Usually, such transactions – including transfers of money, properties
and legal titles such as land rights – require a neutral intermediary to establish trust and
document the transaction. Typically such a role is taken on by a bank, a notary or a pub-
lic administration. However, the intermediary often creates dependencies and additional
costs and may even be susceptible to fraud and corruption. These issues are addressed
by the blockchain technology which provides a technical solution for direct transactions
between individuals that does not require an intermediary. Blockchain substitutes the
function of an intermediary by using a network of nodes that validate and store informa-
tion in a decentralised and transparent way. Because of this, information once saved in
the blockchain cannot be tampered with.
In recent years, blockchain technology has been tested in various international develop-
ment projects, e.g. for financial services such as the transfer of remittances, peer-to-peer
electricity trading and the management of land titles and identities. However, currently,
there is very little reliable information available about the impacts and lessons-learned
from these applications [69].
22 _ I AS S St ud y
IA SS S tu dy _ 23
Box 7: Using GIS for site identification
Project development for mini-grids in remote and rural areas is associated with high
development and transaction costs. In many cases, expensive field trips and surveys are
required to understand the local situation and demand for electricity at the very early
project development stage. This significantly increases the developers’ risk as they have
to pre-finance such activities before knowing about the viability of the sites.
This risk can be reduced by using remote site identification tools. Geographic information
systems (GIS) can be used to process geospatial data and subsequently identify suitable
settlements for mini-grid developers. Crucial information such as the number and loca-
tion of households, population density and existing grid infrastructure can be obtained
from sources like OpenStreetMap or via automatic detection on satellite images. After the
remote identification of settlements, household figures can be linked to socio-economic
data and customer profiles derived from existing projects. This is made possible by the
use of smart meters which allow the collection of an enormous amount of customer data.
Profiles based on this data enable an improved estimation of the electricity demand and
ability to pay of future customers. By applying these digital solutions to site identification
and pre-feasibility assessments, project development and planning can become consid-
erably more lean and efficient.
analysis), resource and technology cost assessment,
sizing and optimisation, as well as financial modelling
and tariff setting (e.g. with loop to the demand estima-
tion) are integrated into one single planning tool.
Attempts to establish such holistic planning solutions
are for instance made by the US-provider Odyssey
[76], which has developed a digital, web-based plat-
form for planning and managing mini-grid projects.
5.4 Digital technologies for operation,
maintenance and customer
management
With regards to operation and maintenance as well
as customer management, digital applications inter-
act more profoundly with the socio-economic and
country-specific context of a mini-grid project.
© Muhammad Imran, INTEGRATION Umwelt & Energie GmbH
Deep read: In early 2019, the Fondazione Eni Enrico Mattei (FEEM) published
a study on “Digitalization for Energy Access in Sub-Saharan Africa: Challenges,
Opportunities and Potential Business Models” [43]. The study provides a com-
prehensive overview as well as an in-depth analysis of the strengths and weaknesses of
pay-as-you-go business models in the off-grid solar sector, including practical examples
and recommendations for policy-makers.
Mazzoni, D. 2019. Digitalization for Energy Access in Sub-Saharan Africa. Challe nges, Opportunities an d
Potential Business Models. FEEM Working Paper No. 2 2019.
Operation and maintenance
Once the mini-grid system is installed, it enters the
technical operation phase. The key challenge here is
to keep the operation and maintenance costs low.
Remote monitoring systems (R MS), often cloud-
based and connected via telecommunication link
with the grid’s SCADA system, allow for a real-time,
remote observation of critical system parameters
such as battery status or the performance of the gen-
eration system. For so-called predictive maintenance,
algorithms can anticipate faults and notify service
personnel to perform maintenance duties if needed.
Providers of RMS technologies – for example the US
supplier Powerhive [58] or AMPP from the Nether-
lands [77] – claim that the frequency of component
replacements as well as logistics and labour costs can
be significantly reduced [78].
In the context of Sub-Saharan Africa, these opportu-
nities for cost reduction particularly relate to the
reduction of long and costly trips to mini-grid sites,
the avoidance of system failures and the extension of
the life span of the system’s components [71,79–81].
Whether remote monitoring can actually reduce the
number of staff employed for the on-site maintenance
of the system is questionable [56,73,80]. RMS could
serve as a support tool for local technicians, which
still play an important role for the relation ship
between the operator and the local customers [73]. It
may, however, be necessary to provide additional
training to enhance the skills of the local technical
staff to keep up with the complexity of the system [73].
Since today there is already often a lack of skilled per-
sonnel on the ground [82], this could become a chal-
lenge for the digitalisation of mini-grids in the future.
Customer management
An importa nt task for m ini-grid operators is to
ensure the cash-flow, i.e. collect the payments from
the customers. Depending on the socio-economic
context and the chosen payment approach, e.g. fee-
for-service or pay-as-you-go, a numb er of ICT-
assisted payment schemes are available. Especially in
East Africa, where mobile money, such as M-Pesa in
Kenya, is a widespread means of pay ment, these
schemes enjoy hig h popula rity. Companies li ke
M-Kopa [83] or Angaza [84] run their business model
on mobile payment schemes. Here, customers are
reminded remotely of the payment deadlines and in
case of discontinued payments, the control box (or
the sma rt meter) automat ically d isconnects the
household from the mini-grid.
Other approaches include the sales of “pre-paid”
scratchcards which contain an SMS code with which
the customers can remotely activate their electricity
supply. This approach is for example used by A zuri
Technologies [85]). With the proliferation of smart-
phones and tablets new and more sophisticated ways
of organising remote customer relationships become
possible. Mobile apps, could for instance, inform cus-
tomers more precisely about their payments, system
status and energy consumption patterns, and could
allow them to interact directly with the energy serv-
ice company. Specialised apps, developed exclusively
for service companies, could provide on-site staff
members with remote access to (cloud-based) system
data and guide them through ser vice operations. It
goes without saying that all these approaches only
work in areas with a good mobile (data) network cov-
erage. This may be one reason why currently the pos-
24 _ IA S S S tud y
Exploring the n exus of mini-grids an d digital technologie s
sibil ities of sma rt cu stomer ma nagement are
exploited to a rather limited extent in the context of
Sub-Saharan Africa. It has been obser ved that even
mini-gr ids that have been built over the past five
years use over-the-counter voucher payment systems
despite the possibility of mobile money [72].
Furthermore, smart meters could enable the use of
post-paid systems. However, the success of such a
post-paid system depends highly on the relationship
with the respective community [56]. While having an
internet connection would be a favourable condition
for smart meters and post-paid systems, it could even
work if the smart meters are not constantly connected
to the internet. Companies have developed solutions
for smart meters to store electricity consumption
data. This data could then be uploaded as soon as the
internet connection is again available [56].
However, more sophisticated systems for customer
management, for instance smart meters with dis-
plays, may increase costs for the customers. A further
aspect concerns cyber security and data protection.
Mini-grids and rural customers are certainly not a
typical target of cyber-crime. However, these issues
should be properly addressed by the technology
developers.
Finally, more recent attempts in the mini-grid com-
munit y include t he exploration of alternative
approaches towards customer relationships by mov-
ing away from the traditional “supplier-consumer”
model towards a “prosumer” model. In this model,
gr id-conn ected customers themselve s be come
(partly) producers of electricity, for instance by oper-
ating their own photovoltaic modules on their home.
Excess electricity that is not self-consumed can be
traded across the m ini-grid to neighbours. For the
billing, electr icity exchanges need to be measured
accu rately with bi-d irectional smart meters. The
company SOLshare [86], based in Bangladesh, has
developed a peer-to-peer solar energy trading plat-
form based on distributed ledger technology (“block-
chain”) for such commu nity mini- grids. As the
SOLshare concept is relatively recent and one of the
first of its kind, it is recommended to observe and
assess its experiences carefully to identify lessons-
learned that could be useful for similar approaches in
Sub-Saharan Africa.
5.5 Mini-grids to power digital
technologies for productive use
Productive uses of energy are essential for the crea-
tion of value and employment in off-grid communi-
ties. However, they do not automatically result from
energy access. Indeed, productive uses require a com-
plex interaction of different factors which include
among others direct engagement with the respective
community, sensitisation, education, training as well
as the availability of micro-finance solutions [71–73].
Usually, views on the potential of productive use
devices in r ural areas have centred on benefits for
agricultural activities and food production (e.g. grain
mills, water pumps or milk cooling) or local com-
merce and manufacturing such as sewing. Communi-
cation and information services, however, play an
increasingly important role in developing economic
activities in rural areas. In recent years, a number of
(social) businesses have emerged combining energy
access with access to internet and mobile communi-
cation, e.g. in internet cafés, tele-kiosks or via WIFI
hotspots. For example, Afr ica Greentech [87] and
Winch Energ y [88] have developed solar internet
kiosks that provide not only clean electricity from a
photovoltaic system, but also satellite-based internet
access. Similarly, due to the increasing prevalence of
digital technologies, it is likely that productive use is
more and more shifted towards services which could
complement or even improve conventional produc-
tive use approaches. For example, e-scooters charged
by the mini-grid could offer transportation services
in rural areas via an online platform and even include
cooling boxes to keep food products fresh or medica-
tions and vaccines cool. In the a gricultural sector,
tools and other assets could also be shared via plat-
forms.
Still, access to mobile technologies alone may not suf-
fice to create sustainable benefits. The lack of trai-
ning and skills as well as adequate content and infor-
mation on the internet is still a major barrier
hindering the use of digital technologies, in particular
in rural areas. In order to tackle this challenge, some
companies have started to provide e-learning solu-
tions to improve the take-up of productive uses (see
Box 8). Such approaches, if well-planned and targe-
ted, could also contribute to closing the gender divide
in the productive use of energy.
IA SS S tu dy _ 25
Fina lly, mini-grids can be used to power mobile
phone anten na in isolated villages. Con nected to
mini-grids, they could provide a double benefit: First,
they improve telecommunication coverage in the
region. Second, they could become a catalyst for the
construction of the mini-grid itself which, w ithout
the investment of a mobile phone operator, may not
be possible. As an example, in India, OMC Power has
used this anchor load model displacing diesel-based
power supply to telecom towers with renewable
energy while enhancing electricity access to neigh-
bouring areas [90]. In Sub-Saharan Africa, however,
this model is so far less prevalent [72,73]. One reason
is that rural communities are often very scattered.
Furthermore, energy access and telecommunication
companies often have different interests and rarely
cooperate. Still, much could be learned from experi-
ences in other countries such as India.
Box 8: Linking energy access with education
Education and access to electricity go hand in hand in order to improve livelihoods for
rural populations. REI-Cameroon (REIc), a solar mini-grid company, has built on this idea
to develop a digital education platform for communities powered by mini-grids [89]. This
platform serves adults and youths with audio-visual content providing basic literacy and
skill development in vocational trades such as tailoring, woodwork, welding, hair dressing,
etc. The platform uses the mini-grid network infrastructure to provide hotspots where the
students connect and study using mobile phones, tablets or laptops.
© REI-Cameroon
26 _ IAS S St ud y
Exploring the n exus of mini-grids an d digital technologie s
6. Conclusions
Mini-grids are an important instrument to achieve
SDG7, 9 and 13 in Sub-Saharan Africa and globally.
Digital technologies provide numerous opportunities
in the mini-grid sector by for instance providing new
funding opportunities, improving the functioning of
mini-grids as well as optimising maintenance and
customer management. With mini-grids ensuring
access to electricit y, digital technologies could be
used to advance productive uses, be it through the
use of digital appliances, access to information and
learning platforms or the development of new serv-
ices linked to digital technologies. On the other hand,
the use of digital technologies in mini-grids in rural
Sub-Saharan Africa poses new challenges and risks,
in particular with regard to privacy and data security.
Coming back to the requirements for sustainable
mini-grids outlined in Chapter 4, the following con-
clusions can be drawn concerning the potentials of
digital technologies to achieve these requirements
(see Annex III):
1) Mini-grids should be powered by renew-
able energy sources. The application of dig-
ital technologies enables mini-grids to better cope
with complexity challenges that go along with the
integration of i ntermit tent renewable energy
sources. For example, smart management of gen-
eration, storage and demand of electricity can
improve the balance and efficiency of mini-grids
based on renewable energy sources. In addition,
digital technologies allow for the integration of
additional information – such as weather forecasts
– to develop optimal load schedules for renewable
mini-grids. Furthermore, digital tools for the plan-
ning and design of mini-grids could support the
identification of sites that are optimal for the use
of renewable energy sources.
2) Mini-grids should account for the spe-
cific socio-economic context. Digital plan-
ning and design tools can complement conven-
tional modes of design and planning and help to
integrate relevant information, such as locations
of households, businesses, commun ity centres
and existing infrastructures. In this way, the spe-
cific characteristics of a certain location could be
better accounted for. If in the future data on the
development of load profiles of communities is
made available, this data could be used to improve
forecasts about fut ure electricity demand and
thus contribute to a more adequate sizing of mini-
grids. Furthermore, tools for remote maintenance
and support can help to provide better services to
remote communities, decrease downtimes and
the time need for repairs. Finally, digital technolo-
gies already today provide solutions for customer
infor mation and payment, e.g. though mobile
payment apps, which could further develop. An
appropriate and user-centred desig n of these
technologies is imperative in this regard.
3) Mini-grids should enable equitable and
aordable electricity costs. Starting with
the planning phase, digital technologies, big data
and improved planning tools can reduce the ini-
tial costs of project development and mini-grid
systems. The intelligent management and opera-
tion of mini-gr ids through digital technologies
could further contribute to reducing electricity
costs. Besides, this could allow flexible prices that
may decrease the average electricity costs for all
users.
IA SS S tu dy _ 27
24 _ IA S S S tud y28 _IA SS S tu dy
priate and user-centred design of the technologies
is essential, in particular in rural contexts where
illiteracy is often a challenge.
8) Mini-grids should minimise their ecolog-
ical footprint. Smart management of mini-
grids can increase the life-span of essential com-
ponents like batteries, which are not only the
most expensive parts of the system, but also have
a high ecological footprint. Predictive mainte-
nance helps to anticipate components’ failure
even before it occurs which avoids larger damage
to the system and may reduce the production of
e-waste. At the same time, digita l technologies
could be used to keep track of mini-grid compo-
nents to ensure their proper decommissioning,
disposal or recycling.
Many of the potentials that could unfold through the
integrated use of digital technologies in and for mini-
grids in Sub-Saharan Africa have not yet been tapped
into. Technical issues, even internet access, do not
appear to be limiting factors for the application of
digital technologies in mini-grids. As this study has
shown, regulatory, economic and soc io-cultu ral
framework conditions play a much more decisive
role. These factors should be carefully considered and
so should the potentially adverse consequences of
ICT use. The integration of digital technologies into
mini-grids should never be an end in itself, but always
serve the needs of the people being provided with
electricity services.
4) Mini-grids should provide reliable elec-
tricity supply. Digital technologies can improve
proper demand estimation and sizing of mini-
grids which already increases their reliability. In
addition, remote maintenance and control will
help to reduce downtimes of the system. Smart
demand side management could prevent power
outages, e.g. by partially reducing demand in cases
of low battery charging status.
5) Mini- grids should be oriented towards
pro du ct ive uses. Dig ital tools can help to
better integrate potential productive uses into the
planning and design of mini-grids. Furthermore,
they can be used to improve conventional equip-
ment for productive uses, such as irri gation
systems for agriculture. Besides, linking mini-
grids and access to modern ICTs could add to the
creation of an enabling environment for new
economic activities such as digital services (e.g.
sca nnin g of ficial documents, internet cafés,
telephone charging).
6) Mini-grids should adapt to new condi-
tions. Digital technologies, in particular smart
meters, could facilitate the setup of more decen-
tralised mini-grid configurations, for instance by
enabling consumers to partially become produc-
ers (“prosumers”) of electricity and possibly even
exchanging it with other prosumers on digital
peer-to-peer electricity trading platforms. Digi-
talisation could furthermore contribute to a flex-
ible expansion of the mini-grid when demand
increases at a later point of time and allow its con-
nection to the main grid.
7) Mini-grids should account for transpar-
ency and consumer protection . Digital
technologies in mini-grids collect data that are
used to improve the efficiency and reliability of
the system. However, if data security and privacy
issues are not carefully handled this may bear the
risk of negative consequences for the consumer. A
responsible and t ransparent data handling is
therefore para mount. Digital tools can bring
transparency to the users about which data is
being collected and subsequently empower them
as consumers. To serve these purposes, an appro-
Exploring the n exus of mini-grids an d digital technologie s
Engaging in an open dialogue with innovators to
develop suitable framework conditions addressing
their needs.
Fostering research and innovation at the intersec-
tion of energy access and productive uses.
Donor organisations could contribute by
Incentivising or even requiring that data from the
mini-grids they funded is shared on an accessible
and open platform.
Supporting technology transfer and cooperation.
Including technical requirements for appropriate
digital features in mini-grid tenders that best serve
the local context and needs and foster user-centric
designs of technologies.
Fosteri ng collaborat ion between communities,
innovators and local res earchers to develop
tailored solutions for specific local contexts.
Assessing the implications of digital technologies
in mini-grids in order to create solid knowledge
about their effects, for instance on costs, long-term
sustainability as well as consumer satisfaction and
the creation of productive uses.
IA SS S tu dy _ 29
7. Options for action
Following these c onclusions , t here are sever al
options for key stakeholders in order to foster the
creation of a positive and sustainable nexus of mini-
grids and digital technologies:
Policy-makers could contribute by …
Providing a long-term plan for grid extension so
that mini-grid stakeholders are better able to eval-
uate to which extent digital technologies should
be incorporated in the mini-grid.
Developing regulatory frameworks that allow flex-
ible tariffs for operators of the mini-grid so that
digital solutions such as smar t meters become
attractive, for instance through managing demand
as a function of variable, time-dependent tariffs.
Providing regulation that is technology-neutral
and fosters the development of best practices.
Providing incentives and subsidies for high-costs
and high-risk projects that could serve the devel-
opment and testing of digital solutions for the
improvement of mini-grids.
Supporting the development of standa rds and
quality criteria for digital technologies in mini-
grids.
Providing a framework for data security and con-
sumer protection, while on the other hand encour-
aging the sharing of non-personal data to improve
demand forecasts for mini-grids.
Of fering cap acit y-buildi ng mea sures which
empower local commu nities to understand the
technolog y and take on repair and maintenance
responsibilities themselves.
Moreover, policy-ma kers, donor organisations and
technolog y de velopers should c ollab orate and
exchange with each other as well as other stakehold-
ers in order to create favourable framework condi-
tions and new impetus for a purposeful use of digital
technologies for sustainable mini-grids.
Companies and technology developers
could contribute by …
Putting consumer needs at the centre of technol-
ogy development and considering specific local
contexts and requirements.
Sharing their data and using open-source software.
Jointly developing standards and building tech-
nologies that – based on these standards – is com-
patible and allows for more flexibility and possible
extensions.
Engaging and exchanging with other companies
and innovators to create knowledge networks and
to share lessons-learned from success stories as
well as failures.
© Yong006/Shutterstock
30 _ IA S S Stud y
Exploring the n exus of mini-grids an d digital technologie s
IA SS S tu dy _ 31
Annex I: Overview and profiles of selected
Sub-Saharan African countries
Socio-economic indicators
Population (in millions, 2018) a)
Rural population (in %, 2018) a)
Rural population with access
to electricity (in %, 2016) b)
Individuals using the internet
(in %, 2017) c)
Unique mobile subscriptions
(in millions, 2017) d)
Rural population with mobile money
account (in %, 2017) a)
Ethiopia
Madagascar
Mali
Mozambique
Nigeria
Senegal
Tanzania
Uganda
Zambia
Kenya
109.2
79
29.2
18.6
34.7
0.3
51.4
73
59.7
17.8
28.3
72.6
26.3
63
6.9
9.8
5.9
9.9
19.1
58
6.4
12.7
11.4
20.6
29.5
64
14.7
20.8
13.8
18.2
195.9
50
34.1
27.7
86
2.6
15.9
53
43.5
29.6
8.4
28.1
56.3
66
17.1
16
23.7
37.8
42.7
76
18.6
23.7
17
50.1
17.4
56
6.5
27.9
9
25.5
Table A:
Overview of selected
socio -economic indicators
Sources:
a) World Bank , World
Development Indicators .
b) International Energy
Agency. Energy Access
Outlook 2017.
c) ITU, World Telecommu-
nicatio n/ICT Develop-
ment Rep ort and
database.
d) GSMA . The Mobile
Economy. Sub -Saharan
Africa 2017.
Ethiopia
Madagascar
Mali
Mozambique
Nigeria
Senegal
Tanzania
Uganda
Zambia
Kenya
Table B:
Overview of selected RISE
indicators
Sources:
World Bank, Regulatory
Indicators for Su stainable
Energy (RISE),
http://rise.world bank.org/
(last checked 10 J uly 2019).
Mini-grid regulation
– selected indicators
Programs to support the
development of mini-grids exist
Regulation clarifies what will occur
when main grid reaches the mini-grid
Mini-grids can be owned and
operated by private operators
Operators are allowed to charge a
tariff different from the national tariff
Publicly funded mechanisms exist to
secure viability gap funding
Duty exemptions and/or subsidies for
mini-grids exist
Technical standards exist detailing
requirements for mini-grids to
connect to the grid
Environmental regulation on the
disposal of solar devices exists
ETHIOPIA
Located in the Horn of Africa, Ethiopia has one of the
largest populations in Sub-Saharan Africa. The coun-
try’s economy is mainly dependent on the agricul-
tural sector for income generation and job creation.
Economically, Ethiopia is one of the least developed
countries in the world with a large majority of Ethio-
pians living in rural areas. Here – in contrast to Ethi-
opia’s urban centres access to electricity remains
a major challenge despite abundant solar, wind and
hydropower resources.
109.2 Mio. people
(2018) a)
79 % live in rural
areas (2018) a)
29.2 % of rural
population with
access to electricity
(2016) b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
32 _ IAS S Stud y
Exploring the n exus of mini-grids an d digital technologie s
ICT adoption & digital development
Ethiopia’s telecommunication sector has long been dominat-
ed by a state-owned operator. In turn, this has led to a lack of
innovation, high prices for consumers, low adoption rates of
modern information and communication technologies (ICTs)
and substantial obstacles in the development of private en-
terprises in the sector [3]. However, the government aims to
liberalise the telecommunication sector and to provide a new
regulatory framework including among others the protection
of consumer rights [3]. Furthermore, it has devoted substan-
tial resources to infrastructural improvements in order to fa-
cilitate access in rural areas [4].
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
18.6 % of individuals use
the internet (2017) a)
34.7 Mio. unique mobile
subscriptions (2017) b)
0.3 % of rural population with
mobile money account (2017) c)
www
Sources:
[1] World Bank. 2018. Ethiopia’s Transformational Approach to Universal Electrification. https://www.worldbank.org/en/news/
feature/2018/03/08/ethiopias-transformational-approach-to-universal-electrification (Accessed 01 July 2019).
[2] SE4All Africa Hub, African Development Bank. 2017. Mini Grid Market Opportunity Assessment: Ethiopia. https://www.powerforall.
org/application/files/2915/5118/9654/Ethiopia3.pdf (Accessed 01 July 2019).
[3] Fukui, Roku. 2019. In Ethiopia, digital development just took a major leap forward. https://blogs.worldbank.org/digital-development/
ethiopia-digital-development-just-took-major-leap-forward (Accessed 01 July 2019).
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
Rural electrification & mini-grids
Under Ethiopia’s 2017 National Electrification
Programme, the government aims to achieve
universal electrification by 2025 [1]. The plan
envisages that 65 percent of the population
will be served by the main grid and 35 percent
through o-grid infrastructures such as mini-
grids and solar stand-alone systems. Consid-
ering the planned network extensions up to
2020, it is estimated that 13 million people in
Ethiopia would be best served by mini-grids
[2]. To foster mini-grid development and pri-
vate sector involvement, legislative framework
conditions have been substantially improved.
However, there still remains a lack of planning
capacity and experience in the o-grid sector
which hampers mini-grid expansion [2].
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
IA SS S tu dy _ 33
KENYA
Kenya is one of the fastest growing and most diversi-
fied economies in Sub-Saharan Africa with a vibrant
private sector and a well-educated and skilled work-
force. The country has made significant progress
in infrastructure as well as in social and economic
development over the past decade. Still, poverty
especially in rural areas – remains a major challenge.
Providing electricity from renewable energy sources
is therefore central for poverty reduction and rural
development in Kenya.
Rural electrification & mini-grids
Kenya aims to achieve universal electrifica-
tion by 2022. Through its Last Mile Connec-
tivity Program (LMCP), the government aims
to connect all people living within 600m of a
transformer to the central grid [1]. Still, mini-
grids could play a significant role in provid-
ing electricity access to rural communities.
While it is estimated that by 2017 at least 65
mini-grids operated in Kenya, their number
could grow to 2,000-3,000 by 2021 if favour-
able regulations are put in place [2]. Although
provisions and regulations for mini-grids have
been developed, private actors are often de-
terred by the inflexible tari model, uncertain-
ty about when the main grid arrives, as well as
limited opportunities to receive subsidies and
public grants for o-grid projects.
ICT adoption & digital development
Kenya is a leading country in the adoption of modern infor-
mation and communication technologies (ICTs) and mobile
money in Sub-Saharan Africa. Since the early 2000s, the Ken-
yan government has utilised the internet as a tool for develop-
ment and increased its eorts to provide adequate infrastruc-
tures [3]. With the “Digital Economy Blueprint” launched in
May 2019, Kenya aims to provide a comprehensive framework
for the development of the ICT sector [4]. Still, challenges re-
main with regard to internet access in rural areas, high costs of
equipment and the lack of relevant online content [3].
Sources:
[1] World Bank. 2017. Mini-Grids in Kenya. A Case Study of a Market at a Turning Point. Energy Sector Management Assistance
Program (ESMAP). Washington, D.C., USA.
[2] Duby, S. and Engelmeier, T. 2017. Kenya: The World’s Microgrid Lab. https://www.tfeconsulting.com/_website/wp-content/
uploads/2017/ 12/TFE_Report-Kenya-new.pdf (Accessed 22 June 2019).
[3] Mureithi, M. 2017. The Internet Journey for Kenya: The Interplay of Disruptive Innovation and Entrepreneurship in Fueling Rapid
Growth. In: Ndemo, B.; Weiss, T. (eds). Digital Kenya. Palgrave Studies of Entrepreneurship in Africa.
[4] Government of Kenya. 2019. Digital Economy Blueprint. Powering Kenya’s Transformation. http://www.ict.go.ke/wp-content/
uploads/2019/05/Kenya-Digital-Economy-2019.pdf (Accessed 02 July 2019).
51.4 Mio. people
(2018) a)
73 % live in rural
areas (2017) a)
59.7 % of rural
population with
access to electricity
(2016) b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
17.8 % of individuals use
the internet (2017) a)
28.3 Mio. unique mobile
subscriptions (2017) b)
72.6 % of rural population with
mobile money account (2017) c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
www
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
www
MADAGASCAR
The island state Madagascar, located in the Indian
Ocean east of Mozambique, is one of the poorest
countries in the world. The agricultural sector forms
the backbone of Madagascar’s economy and pro-
vides both employment and livelihoods for the vast
majority of its population. Despite economic growth,
especially in the service sector, poverty remains a
major challenge as agricultural productivity is low.
Rural electrification therefore plays an important role
in improving living conditions and income opportuni-
ties.
Rural electrification & mini-grids
Madagascar’s New Energy Policy (NEP), pub-
lished in 2015, aims to provide access to mod-
ern electricity services to 70% of its population
by 2030, mainly through grid-extension, mini-
grids as well as other o-grid technologies
[1]. Currently, many rural communities without
access to the main grid depend on – mostly
diesel-powered – mini-grids [2]. This provides
the opportunity to hybridise these mini-grids
through solar photovoltaics [1]. Solar power, in
particular photovoltaic, is currently mainly used
to deliver electricity to public buildings such as
health clinics and for single households in rural
areas [2, 3]. According to the NEP, solar mini-
grids are projected to serve one percent of
households with electricity by 2030 [1].
ICT adoption & digital development
Madagascar aims to exploit the opportunities of modern in-
formation and communication technologies (ICTs) in order to
spur its economy and to reduce poverty. The government has
launched several projects to develop infrastructures and fos-
ter ICT adoption, for instance by improving the coverage of
underserved regions and promoting the use of computers and
tablets in schools and other educational institutions [4]. Still,
the country struggles with major challenges such as aord-
ability of and access to modern ICTs and a large rural-urban
divide.
Sources:
[1] Pigaht, M.; Werler, S. 2016. Madagascar: Opportunities for Solar Business. Federal Ministry for Economic Aairs and Energy (BMWi):
Berlin. http://ader.mg/pdf_files/infos/Energies_Renouvelables/Solaire/PDP_Report_Solar_Madagascar.pdf (Accessed 02 July 2019).
[2] Energypedia. Madagascar Energy Situation. https://energypedia.info/wiki/Madagascar_Energy_Situation (Accessed 02 July 2019).
[3] Ministry of Energy. (Undated). Expression of Interest to participate in the Scaling Up Renewable Energy In Low Income Countries
Program (SREP). Antananarivo: Ministry of Energy.
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
26.3 Mio. people
(2018) a)
63 % live in rural
areas (2018) a)
6.9 % of rural
population with
access to electricity
(2016) b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
9.8 % of individuals use
the internet (2017) a)
5.9 Mio. unique mobile
subscriptions (2017) b)
9.9 % of rural population with
mobile money account (2017) c)
34 _IA SS S tu dy
Exploring the n exus of mini-grids an d digital technologie s
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
IA SS S tu dy _ 35
www
MALI
Mali is a vast, landlocked country in West Africa and
one of the poorest countries in the world. Whereas
the economy is growing – the agricultural and serv-
ice sectors being the most important drivers of this
growth – it is still hampered by a lack of diversification.
Instability and conflicts hamper social and economic
development. In addition, high population growth and
vulnerability towards droughts and climate change
effects challenge food security and livelihoods espe-
cially in rural areas where most of Mali’s most vulner-
able populations live.
Rural electrification & mini-grids
Mali depends largely on imported fossil fuels
and to a lesser extent on hydropower for elec-
tricity production, leaving much of its renew-
able energy potentials untapped [1]. Given
the vast size of the country and its dispersed
settlements especially in the rural North, grid
extension is a too costly option to promote
electricity access [2]. In rural areas, electricity
is therefore often provided by diesel genera-
tors, but solar solutions are slowly catching up
[2]. In recent years, the government has pro-
moted the installation of photovoltaic (PV) and
hybrid diesel-PV mini-grids to improve clean
electricity services in rural areas. A 2016 survey
revealed that by that time, 13 PV-, 13 biodiesel
and 45 PV-hybrid mini-grids (out of a total of
73) were installed [3].
ICT adoption & digital development
The government of Mali has identified modern information
and communication technologies (ICTs) as important tools for
social and economic development and managed to achieve
a high level of basic telecommunication access [4]. The
national strategy for the development of the digital econo-
my, called “Digital Mali 2020”, aims at improving telecom-
munication infrastructures, developing relevant online con-
tents, expanding digital services and developing human
capacities as well as a vibrant digital industry [5].
Sources:
[1] UNEP. 2017. Atlas of Africa Energy Resources. https://wedocs.unep.org/bitstream/handle/20.500.11822/20476/Atlas_Africa_
Energy_Resources.pdf (Accessed 02 July 2019).
[2] Energypedia. Mali Energy Situation. https://energypedia.info/wiki/Mali_Energy_Situation (Accessed 02 July 2019).
[3] Hobson, Eseoghene Larkwei. 2016. Mapping & assessment of clean energy mini-grid experiences in West Africa. ECOWAS Centre
for Renewable Energy and Energy Efficiency. http://www.ecreee.org/sites/default/files/mapping_and_assessment_of_existing_
clean_energy_mini-grid_experiences_in_west_africa_ecreee.pdf (Accessed 03 July 2019).
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
[5] Ministry of Digital Economy, Information and Communication. Undated. Mali Numérique 2020. Stratégie Nationale de
Développement de l’Economie Numérique. Draft. http://138.68.77.244/wp-content/uploads/2018/03/MALI-Nume%CC%81rique-
2020.pdf
19.1 Mio. people
(2018)a)
58 % live in rural
areas (2018)a)
6.4 % of rural
population with
access to electricity
(2016)b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
12.7 % of individuals use
the internet (2017)a)
11.4 Mio. unique mobile
subscriptions (2017)b)
20.6 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
36 _ I AS S St ud y
Exploring the n exus of mini-grids an d digital technologie s
MOZAMBIQUE
Mozambique is located in East Africa on the shore
of the Indian Ocean. Its 2,500 kilometres of coast-
line make it particularly vulnerable to tsunamis and
cyclones which hit the country hard in the recent
past. The country’s economy lacks diversification and
is only growing slowly. Subsistence agriculture pro-
vides livelihoods to many people in rural areas where
poverty remains a major challenge.
Rural electrification & mini-grids
Mozambique aims to achieve 100 percent elec-
tricity access by 2030 with o-grid solar power
oering a cost-eective solution to comple-
ment grid extension in remote and sparsely
populated rural areas [1]. The solar potentials
of Mozambique are currently largely untapped
and only used for the electrification of rural ar-
eas through o-grid solutions [2]. Due to a lack
of favourable and clear regulation, the mini-
grid sector has so far not gained traction and
private sector participation is rather low. Cur-
rently, there are only a few mini-grids installed,
most of which are diesel-powered and face
challenges with regard to operation and main-
tenance [1]. According to a 2017 report, it is es-
timated that 5.6 million people in Mozambique
would be best served by mini-grids [3].
ICT adoption & digital development
In recent years, infrastructure development and increasing
competition in the telecommunication market have lowered
prices and improved access to modern telecommunication
services [4]. Still, Mozambique has a long way to go to fully
benefit from modern information and communication technol-
ogies (ICTs) [5]. For a large part of the population, devices and
a high-speed, reliable internet connection remain unaordable
while at the same time there is a lack of digital skills and rel-
evant online content in local languages hampering ICT adop-
tion and the development of beneficial network eects [5].
Sources:
[1] Baruah, P.; Coleman, B. 2019. Country Brief: Mozambique: O-grid solar power in Mozambique: Opportunities for universal energy
access and barriers to private sector participation. Global Green Growth Institute. https://gggi.org/site/assets/uploads/2019/02/
20190218_-Country-Brief_Mozambique.pdf (Accessed 03 July 2019).
[2] UNEP. 2017. Atlas of Africa Energy Resources. https://wedocs.unep.org/bitstream/handle/20.500.11822/20476/Atlas_Africa_
Energy_Resources.pdf (Accessed 03 July 2019).
[3] SEforALL Africa Hub; African Development Bank. 2017. Mini Grid Market Opportunity Assessment: Mozambique. https://greenmini-
grid.se4all-africa.org/sites/default/files/GMG%20MDP%20Document%20Series%20%235%20Mozambique%20Assessment%2003-
05-17.pdf (Accessed 03 July 2019).
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
[5] Gillwald, Alison; Mothobi, Onkokame; Rademan, Broc. 2019. The state of ICT in Mozambique 2018. RIA Policy Paper. https://resear-
chictafrica.net/wp/wp-content/uploads/2019/03/2019_After-Access_The_State-of-ICT-in-Mozambique.pdf (Accessed 03 July 2019).
29.5 Mio. people
(2018) a)
64 % live in rural
areas (2018) a)
14.7 % of rural
population with
access to electricity
(2016) b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
20.8 % of individuals use
the internet (2017)a)
13.8 Mio. unique mobile
subscriptions (2017)b)
18.2 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
www
IA SS S tu dy _ 37
www
NIGERIA
Nigeria is the most populous country on the Afri-
can continent and has one of the youngest popula-
tions worldwide. The economy is largely dependent
on fossil fuel resources and remains weak due to a
lack of diversification and a challenging business
environment. Rapid urbanisation has caused numer-
ous problems as the development of infrastructures,
housing and the provision of health and education
services can hardly keep up. Poverty remains a major
challenge in both rural and urban areas.
Rural electrification & mini-grids
Due to poor maintenance and frequent failures,
the Nigerian main grid only serves 23 percent
of the population, despite having been ex-
panded significantly in past decades [1]. The
potential for electrification through mini-grids
is high. Until recently, mini-grids played only
a marginal role in supplying electricity to un-
served populations. A 2018 study suggests
that approximately 30 solar mini-grids serving
6,000 customers are in operation [2]. However,
in 2017 Nigeria issued favourable legislation for
mini-grids that is expected to boost the de-
velopment of the sector. Furthermore, in May
2019, the private sector led mini-grid and solar
home components of the Nigeria Electrification
Project were launched which aim to provide
electricity to 300,000 households and 30,000
enterprises in rural areas by 2023 [3].
ICT adoption & digital development
The Nigerian government is determined to put modern infor-
mation and communication technologies (ICTs) to work for
socio-economic development. The country has a vibrant star-
tup community, a competitive ICT market and issued favour-
able regulatory strategies for the development of the sector
[4]. Still, major challenges remain with regard to universal ac-
cess to and aordability of modern telecommunication serv-
ices – one major issue the government aims to tackle with the
Nigeria ICT Roadmap 2017 – 2020 [5].
Sources:
[1] World Bank. 2017. Mini Grids in Nigeria. A Case Study of a Promising Market. Energy Sector Management Assistance Program
(ESMAP). https://openknowledge.worldbank.org/bitstream/handle/10986/29016/121827-ESM-dNigeriaMiniGridsCaseStudyConf
Ed-PUBLIC.pdf?sequence=1&isAllowed=y (Accessed 03 July 2019).
[2] International Renewable Energy Agency. 2018. Policies and regulations for renewable mini-grids. https://www.irena.org/-/media/
Files/IRENA/Agency/Publication/2018/Oct/IRENA_mini-grid_policies_2018.pdf (Accessed 03 July 2019).
[3] Energypedia. Nigeria Energy Situation. https://energypedia.info/wiki/Nigeria_Energy_Situation (Accessed 04 July 2019).
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
[5] Federal Ministry of Communications. 2017. Nigeria ICT Roadmap 2017-2020. http://www.commtech.gov.ng/Doc/Nigeria_ICT_
Roadmap_2017-2020.pdf (Accessed 04 July 2019).
195.9 Mio. people
(2018)a)
50 % live in rural
areas (2018)a)
34.1 % of rural
population with
access to electricity
(2016)b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
27.7 % of individuals use
the internet (2017)a)
86 Mio. unique mobile
subscriptions (2017)b)
2.6 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
38 _IA SS S tu dy
Exploring the n exus of mini-grids an d digital technologie s
SENEGAL
Located in West Africa at the shore of the Atlantic
Ocean, politically Senegal is one of the most stable
countries in Africa. The country has shown good
growth rates over the past years and has a more
diversified economy than many other Sub-Saharan
African countries. Still, poverty affects a large share
of the population. Livelihoods in rural areas largely
depend on rain-fed subsistence farming which is
highly vulnerable towards climate change.
Rural electrification & mini-grids
The Senegalese government aims to provide
electricity coverage to at least 90% of rural
households by 2025 [1]. Grid extension is very
costly especially in sparsely populated remote
areas. Mini-grids are therefore already widely
deployed in Senegal. With an estimated 142
clean energy mini-grids, it is one of the leading
countries in West Africa [2]. Mini-grids are sup-
ported by the availability of subsidies and ru-
ral development funds and typically deployed
through public-private partnerships where the
government owns the grid infrastructure which
is then operated by private actors [3]. However,
challenges for mini-grids remain especially with
regard to low consumption and purchasing
power of consumers as well as lengthy admin-
istrative processes [4].
ICT adoption & digital development
In recent years, the Senegalese government has taken im-
portant steps to leverage modern information and commu-
nication technologies (ICTs) as a means for socio-economic
development. The Strategy Digital Senegal 2016-2025 seeks
to expand broadband and to provide infrastructures in
unserved areas [5]. The strategy furthermore aims to im-
prove the ecosystem and regulative framework for innovative
private businesses in the ICT sector, strengthen ICT skills and
education as well as improve administrative capacities.
Sources:
[1] SE4All Africa Hub. Undated. Senegal. https://www.se4all-africa.org/seforall-in-africa/country-data/senegal/ (Accessed 04 July 2019).
[2] Hobson, Eseoghene Larkwei. 2016. Mapping & assessment of clean energy mini-grid experiences in West Africa. ECOWAS Centre for
Renewable Energy and Energy Eciency. http://www.ecreee.org/sites/default/files/mapping_and_assessment_of_existing_clean_
energy_mini-grid_experiences_in_west_africa_ecreee.pdf (Accessed 03 July 2019).
[3] European Union Energy Initiative. 2014. Mini-Grid Policy Toolkit – Case Study, Country:Senegal. Available online: http://minigridpoli
cytoolkit.euei-pdf.org (Accessed 04 July 2019).
[4] Energypedia. Senegal Energy Situation. https://energypedia.info/wiki/Senegal_Energy_Situation (Accessed 04 July 2019).
[5] Ministry of Posts and Telecommunications. 2016. Strategy Digital Senegal 2016-2025. https://www.sec.gouv.sn/sites/default/files/
Strat%C3%A9gie%20S%C3%A9n%C3%A9gal%20Num%C3%A9rique%202016-2025.pdf (Accessed 04 July 2019).
15.9 Mio. people
(2018) a)
53 % live in rural
areas (2018) a)
43.5 % of rural
population with
access to electricity
(2016) b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
29.6 % of individuals use
the internet (2017)a)
8.4 Mio. unique mobile
subscriptions (2017)b)
28.1 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
www
IA SS S tu dy _ 39
TANZANIA
Over the past decade, Tanzania has posted rela-
tively high growth rates. Agriculture still plays
a dominant role in income generation and the
creation of jobs, with rural populations largely de-
pendent on subsistence farming. However, mining,
tourism and the industrial sector have gained in im-
portance. Poverty remains a major challenge for the
country, with a lack of housing, education and health
services as well as adequate infrastructures being the
main obstacles for poverty reduction.
Rural electrification & mini-grids
The Tanzanian government considers rural
electrification a key component of poverty
reduction. Aside from grid extension, the Ru-
ral Energy Master Plan focuses particularly on
mini-grids and stand-alone systems for rural
electrification [1]. 100,000 households are ex-
pected to benefit from a performance based
grant of the Rural Energy Agency to support
mini-grids and other o-grid solutions [1]. Tan-
zania has one of the most extensive regulatory
frameworks for mini-grids in Sub-Saharan Af-
rica which includes provisions on licensing, tar-
i regulation and technical standards as well as
more flexible guidelines for smaller projects [2].
It is estimated that at the beginning of 2016,
mainland Tanzania already had at least 109
mini-grids installed serving approx. 184,000
customers [3].
ICT adoption & digital development
Digital technologies play an important role in the govern-
ment’s long-term strategy to transform Tanzania into a know-
ledge-based, semi-industrialised middle-income economy by
2025 [4]. The country has made substantial eorts to create
an enabling environment through the provision of adequate
regulation, competitive markets and infrastructural develop-
ment [5]. In addition, Tanzania has one of the most advanced
mobile money markets in Sub-Saharan Africa [4] and is an
early adopter with regard to digital technologies, for instance
in the e-health sector.
Sources:
[1] Ministry of Energy and Mineral. 2015. Tanzania’s SE4ALL Action Agenda. https://www.seforall.org/sites/default/files/TANZANIA_AA-
Final.pdf (Accessed 04 July 2019).
[2] Energypedia. NAE Case Study: Tanzania, Mini-Grids Regulatory Framework. https://energypedia.info/wiki/NAE_Case_Study:_
Tanzania,_Mini-Grids_Regulatory_Framework (Accessed 04 July 2019).
[3] Odarno, Lily et al. 2017. Accelerating mini-grid deployment in Sub-Saharan Africa: Lessons from Tanzania. World Resources Institute,
TaTEDO. http://documents.worldbank.org/curated/en/532751512396163620/pdf/WP-acceleratingminigriddeploymentsubsaharana-
frica-PUBLIC.pdf (Accessed 04 July 2019).
[4] Okoleke, Kenechi. 2019. Digital transformation in Tanzania. The role of mobile technology and impact on development goals. GSMA.
https://www.gsmaintelligence.com/research/?file=783bb9b0ab8e6e53361607a838d25dcb&download (Accessed 04 July 2019).
[5] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 02 July 2019).
56.3 Mio. people
(2018)a)
66 % live in rural
areas (2018)a)
17.1 % of rural
population with
access to electricity
(2016)b)
Sources:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
16 % of individuals use
the internet (2017)a)
23.7 Mio. unique mobile
subscriptions (2017)b)
37.8 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
www
www
UGANDA
Uganda is a landlocked country with significant
natural resources and an abundance of arable land.
The economy has shown good growth rates over the
past decade, but is vulnerable to adverse climate
conditions, unrest in neighbouring countries and
poor management of public investments. Uganda
has one of the highest population growth rates in the
world with the majority of its population living in rural
areas. Despite significant progress, poverty remains
an important challenge.
Rural electrification & mini-grids
The government of Uganda aims to achieve a
rural electrification access rate of 26 percent by
2022 and achieve 100% by 2040 [1]. Electrifica-
tion is to be reached mainly through grid exten-
sion. However, 140,000 additional installations
of solar photovoltaic systems and mini-grid
connections are envisaged [1]. Mini-grids are
particularly suitable to electrify concentrated
settlements in remote locations, such as the is-
lands in Lake Victoria [2]. Several pilot projects
have been launched in recent years, for exam-
ple a project financed by the European Union
and the German Federal Ministry for Economic
Cooperation and Development which aims
to promote mini-grids in up to 40 villages in
Southern and Northern Uganda [3].
ICT adoption & digital development
Uganda has established a comprehensive and progressive
framework to support the uptake of modern information and
communication technologies (ICTs) and to spur Uganda’s de-
velopment towards a knowledge economy [4]. However, a low
internet penetration rate and a large digital divide between
rural and urban areas constrain the implementation of the Dig-
ital Uganda Vision [5]. Besides, digital skills and competencies
need to be enhanced in order to leverage the potential of ICTs
for productive uses [5].
Sources:
[1] Rural Electrification Agency; Ministry of Energy and Mineral Development. 2013. Rural Electrification Strategy and Plan 2013 – 2022.
http://www.rea.or.ug/resources/strategy%20and%20plan%202013-2022.pdf (Accessed 04 July 2019).
[2] Benon, Bena. Undated. Project Opportunities in O-Grid Renewable Energy. https://www.giz.de/en/downloads/REA%20
Presentation_%20Project%20Opportunties%20in%20O-Grid.pdf (Accessed 04 July 2019).
[3] GIZ. 2018. Pro Mini-Grids – Clean Electricity for Rural Uganda. Improving the national framework for privately operated renewable
electricity distribution. https://www.giz.de/en/downloads/giz2018-Pro-Mini-Grids-Factsheet.pdf (Accessed 04 July 2019).
[4] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 04 July 2019).
[5] Gillwald, Alison; Mothobi, Onkokame; Ndiwalana, Alo; Tusubira, Tusu. 2019. The state of ICT in Uganda. https://researchictafrica.net/
wp/wp-content/uploads/2019/05/2019_After-Access-The-State-of-ICT-in-Uganda.pdf (Accessed 04 July 2019).
42.7 Mio. people
(2018) a)
76 % live in rural
areas (2018) a)
18.6 % of rural
population with
access to electricity
(2016) b)
Source:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
23.7 % of individuals use
the internet (2017)a)
17 Mio. unique mobile
subscriptions (2017)b)
50.1 % of rural population with
mobile money account (2017)c)
40 _ IAS S St ud y
Exploring the n exus of mini-grids an d digital technologie s
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
IA SS S tu dy _41
www
ZAMBIA
Zambia is a land-locked country in the centre of
Southern Africa with abundant natural resources and
one of Africa’s largest copper producers. It is consid-
ered politically stable and has shown high economic
growth over the past years. However, the economic
performance of the country has particularly bene-
fited urban populations and has not translated into
equally significant gains in rural areas where poverty
remains a major challenge.
Rural electrification & mini-grids
Zambia aims to achieve 51 percent rural electri-
fication by the year 2030 [1]. Aside from stand-
alone solar home systems, it is assumed that
mini-grids will play an important role in supply-
ing electricity to rural communities. Mini hydro
power is perceived as having a particularly high
potential [2]. After a successful first pilot of a
solar mini-grid in 2009, further solar mini-grids
are being developed with a combined capacity
of at least 500 kWp to directly benefit public
institutions, businesses and private households
[3]. A regulatory framework for mini-grids
has been approved by the Energy Regulation
Board of Zambia in October 2018 and is cur-
rently in a testing phase [4].
ICT adoption & digital development
The development of information and communication technol-
ogies (ICTs) has been a priority for Zambia for already over a
decade and spurred strong growth rates in the sector. In re-
cent years, the framework conditions for the uptake of ICTs
for socio-economic development have further evolved. These
include for instance high-level government initiatives such as
SMART Zambia launched in 2015 as well as the improvement
of internet infrastructures such as cross-border fibre-optic
connections [5]. Still, internet access, ICT aordability and ICT
skills remain challenges to be tackled in particular in rural areas.
Sources:
[1] Rural Electrification Authority. Undated. Homepage. http://www.rea.org.zm/ (Accessed 04 July 2019).
[2] Rural Electrification Authority. Undated. Mini Hydro Development. http://www.rea.org.zm/our-projects/mini-hydro/page.html
(Accessed 04 July 2019).
[3] Rural Electrification Authority. Undated. Solar Projects. http://www.rea.org.zm/our-projects/solar-projects/page.html
(Accessed 04 July 2019).
[4] Energy Regulation Board. 2019. Regulatory Framework for Mini-Grids in Zambia. http://www.erb.org.zm/content.php?viewpage=mini
(Accessed 04 July 2019).
[5] ITU. 2018. Measuring the Information Society Report 2018 – Volume 2. https://www.itu.int/en/ITU-D/Statistics/Documents/
publications/misr2018/MISR-2018-Vol-2-E.pdf (Accessed 04 July 2019).
17.4 Mio. people
(2018)a)
56 % live in rural
areas (2018)a)
6.5 % of rural
population with
access to electricity
(2016)b)
Source:
a) World Bank, World
Development Indicators.
b) International Energy
Agency. Energy Access
Outlook 2017.
Sources:
a) ITU, World Telecommunica-
tion/ICT Development
Report and database.
b) GSMA 2017: The Mobile
Economy. Sub- Saharan
Africa 2017.
c) World Bank, World
Development Indicators.
27.9 % of individuals use
the internet (2017)a)
9 Mio. unique mobile
subscriptions (2017)b)
25.5 % of rural population with
mobile money account (2017)c)
Sources: World Bank, Regulatory Indicators for Sustainable Energy (RISE),
http://rise.worldbank.org/.
Mini- grid regulation – selected indicators
Programs to support the development of mini- grids exist
Regulation clarifies what will occur when main grid
reaches the mini- grid
Mini- grids can be owned and operated by private operators
Operators are allowed to charge a tari dierent from
the national tari
Publicly funded mechanisms exist to secure viability
gap funding
Duty exemptions and/or subsidies for mini- grids exist
Technical standards exist detailing requirements for
mini- grids to connect to the grid
Environmental regulation on the disposal of solar
devices exists
Exploring the n exus of mini-grids an d digital technologie s
Date
22 March 2019
29 March 2019
8 April 2019
10 April 2019
12 April 2019
16 April 2019
17 April 2019
24 April 2019
25 April 2019
26 April 2019
30 April 2019
10 May 2019
16 May 2019
20 May 2019
Interviewee*
Sustainable energy expert, GIZ, Kenya
Project manager and renewable energy expert, UNIDO, Austria
Representative of consulting and engineering firm for rural
electrification, Germany
Off-grid energy expert, GIZ, Kenya
CEO of company providing solutions for rural development, India
Representative of technology company providing centralised
monitoring and control solution, Germany
Renewable energy expert, GIZ, Germany
Renewable energy expert, UNIDO, South Africa
Representative of solar agro-tech start-up, Kenya
Mini-grid expert, GIZ, Germany
Renewable energy and energy efficiency expert, UNIDO, Austria
Senior energy and innovation advisor, DFID, UK
Off-grid energy expert, GIZ, Mozambique
Rural electrification expert, GIZ, Senegal
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
* Names and company of interview partners have been anonymised.
Annex II: List of interviews
44 _IA SS S tu dy42 _ IA S S Stud y
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