TIERS, MARKETS, SUSTAINABILITY: TRENDS IN RURAL OFF-GRID ELECTRIFICATION - LEARNING & INNOVATION - ENDEV
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Tiers, Markets,
Sustainability:
Trends in Rural
Off-Grid Electrification
Learning & Innovation
Contents
EnDev at a glance 7
Learning & Innovation Agenda 8
Executive Summary 9
Introduction 11
1.1 What is this guide about? 12
1.2 Who is this guide for? 12
1.3 How was this guide developed? 12
1.4 Framing access to electricity 13
1.5 Introduction to off-grid technologies 13
1.6 Market overview of EnDev countries 15
Electricity Access trends 17
Main abbreviations
2.1 Good progress on energy access was made in the last decade … 18
AI Artificial Intelligence 2.2 … however more work is left to be done
ASER Senegalese Rural Electrification Agency following the COVID-19 crisis 19
BMZ German Federal Ministry for Economic Cooperation 2.3 Projected contribution of off-grid systems
and Development to electricity access 21
CAPEX Capital expenditures
DRC Democratic Republic of the Congo
DKTI German Climate Technology Initiative
EnDev Energising Development
GDP Gross Domestic Product
GIZ German Corporation for International Cooperation
GOGLA Global Off-Grid Lighting Association
IEA International Energy Agency
kfW German state-owned investment and development
bank Off-grid solar market and trends 23
kWh kiloWatt-hour
LNOB Leave No One Behind
3.1 Market size of the off-grid solar market 24
MHPP Micro-hydro power plant 3.2 Evolution of the off-grid solar market and technologies 26
MTF Multi-Tier Framework (for measuring energy access) 3.3 Technology focus in EnDev countries 28
PAYGO Pay-As-You-Go
3.4 Key market trends 30
PUDC Emergency Community Development Programme
3.4.1 Productive use 30
(in Senegal)
PUE Productive Use of Energy 3.4.2 Digitalisation 31
RBF Results-based financing 3.4.3 Add-on Products & Services 34
SDG Sustainable Development Goal 3.4.4 Battery innovation 34
SENELEC Senegalese national electricity utility
3.4.5 Rural industrialisation 36
SHS Solar Home System
SSA Sub-Saharan Africa
3.4.6 Integrated electricity supply solutions 38
STEPS Stated Policies Scenario (by the IEA) 3.4.7 Carbon credits 39
List of figures List of tables
Figure 1. Applicability of different off-grid technologies Table 1. Electrification situation and electrification
within the Multi-Tier Framework for planning in the EnDev countries interviewed. 22
Measuring Energy Access 15 Table 2. Mini-grids implemented in selected
Sustainability in off-grid projects: Figure 2. Overview of EnDev countries in Sub-Saharan EnDev countries 29
Learning and innovation 43 Africa with a focus on off-grid energy projects 16 Table 3. Focus of interventions by EnDev in the
Figure 3. Historic achievements of India and China as selected countries 29
4.1 Definition of sustainability 44 compared to required achievement of
4.1.1 Sustainability indicators 46 Sub-Saharan Africa to realise universal access
4.2 Key challenges/barriers 46 to electricity (IEA, 2019). 20
Figure 4. Population gaining access to electricity as per
4.2.1 Financial challenges 47
IEA projections in the STEPS and Sustainable
4.2.2 Institutional challenges 49
Development Scenario, broken down by
4.2.3 Technological challenges 50 technology (IEA, 2019). 21
4.2.4 Social challenges 52 Figure 5. Installed mini-grids by region (MGP, 2020) 24
4.2.5 Ecological challenge 53 Figure 6. Installed mini-grids by technology (MGP, 2020) 24
Figure 7. Projected sales of stand-alone systems
4.3 Lessons learnt and innovation 58
by access level tier (GOGLA, 2020) 25
4.3.1 Financial lessons learnt 59 Figure 8. Interconnected solar home systems
4.3.2 Institutional lessons learnt 59 on Bangladeshi roof tops (Picture by SolShare) 27
4.3.3 Social lessons learnt 61 Figure 9. The Greenlight Planet’s ‘BOOM’,
4.3.4 Technological lessons learnt 63 a picoPV product with integrated radio 28
Figure 10. Visualisation of applied digitalisation
4.3.5 Ecological lessons learnt 65
in mini-grids (EnDev, 2020) 32
Figure 11. Annual installations of lead-acid and lithium-ion
batteries in mini-grids (MGP, 2020) 35
Figure 12. BBOXX store in Katito, Kenia (Source: BBOXX) 35
Figure 13. Some impressions from JUMEME’s operations in
Recommendations 71 Tanzania (Source: JUMEME) 37
5.1 Planning from the perspective of the virtuous cycle Figure 14. A range of customers in off-grid areas may
for long-lasting universal electricity access 72 be served by a single company through
various technologies, or different companies
5.2 Internalizing key considerations from the five
in partnership 38
sustainability factors across the project’s life-cycle 74
Figure 15. Winch Energy solar mini-grid
(Source: Winch Energy) 39
Figure 16. Identified key market trends across
the different off-grid energy sectors 40
Annex 77 Figure 17. Powerhouse of a solar DC mini-grid in Rwanda
A.1 Table with full set of sustainability indicators 78 (Source: Razvan Sandru) 41
Figure 18. Virtuous cycle of electricity provision 44
A.2 Interview questions for practitioners 80
Figure 19. Overview of indicators impacting sustainability
A.3 List of contributors 82 and the virtuous cycle 46
Figure 20. Level of mini-grid tariffs in comparison
to national retail tariffs 47
Figure 21. Comparison of utility electric supply costs with
cash collected in 2014 U.S. dollars per kWh
(Source: Trimble et al., 2016) 48
Figure 22. 63kWp mini-grid deployed in Hajjah, Yemen 60
Figure 23. Delivery of solar systems to customers
by Bidhaa Sasa staff in Kenya 62
Figure 24. An off-grid health Center powerd by solar PV
in Jimma, Ethiopia (Source: Dawit Dagnew) 64
Figure 25. Impact of a consideration of key market trends
on the virtuous cycle of sustainable electricity
access 75
Illustrative examples Recommendations
Blue boxes provide illustrative cases Turquioise boxes highlight general
from the countries recommendations or critical success factors
Reading guide
The guide is structured as follows: Chapter 1 introduces this guide as well as
the topics which are explored in the guide. Chapter 2 provides an overview of
worldwide electricity access trends, with a focus in the SSA context, chapter 3
follows by setting the focus on the off-grid solar market in terms of sizing,
Copyright: EnDev/GIZ
evolution, typology of applied technologies as well as assessing key market
trends; chapter 4 deep-dives on the key underlying factors ensuring projects’
sustainability, assesses prevailing challenges and identifies lessons learnt;
finally, the learnings identified serve as the foundation to a set of recommenda-
tions presented in chapter 5. EnDev at a glance
Around 4 billion people have no access to electricity or modern cooking
technologies. This has a dramatic impact on quality of life, environment,
health, education and income opportunities. EnDev’s involvement focuses
on providing access to modern, renewable energy. This is a pivotal factor
in strength-ening socio-economic development and combatting climate
change.
EnDev’s drive is to improve the lives of the most andcompanies gain access to electricity or improved
vulnerable people, ensuring no one is left behind. cooking technologies can be found in this report.
Economic opportunities and green jobs are created This report also presents EnDev’s impacts on
by building markets for modern, renewable energy. gender, job creation, and reduced carbon emissions.
EnDev con-tributes to reducing greenhouse gas EnDev is a strategic partnership. Dedicated donors,
emis-sions to protect our planet’s climate. Its ap- partners and individuals work together to support
proach is to empower structural, selfsustaining social develop-ment and economic growth by
change; kickstarting market and sector development providing access to modern,renewable energy in
that evolves further without support by EnDev. more than 20 countries around the globe. The
driving force behind EnDev is the partnership of
EnDev’s work is about people. Results are monitored Germany, the Netherlands, Norway, and Switzerland;
and reported rigorously. EnDev’s achievements on donors who are committed to accelerating energy
helping peo-ple, schools, health centres, access and socio-economic development.
7
Copyright: Carsten Hellpap
Learning & Innovation Agenda Executive summary
Energising Development (EnDev) is one of the approaches to accelerate electrification in rural SDG 7 – Universal access to electricity – is to be Off-grid funding is significantly lower than funding
largest on-the-ground technical assistance pro- areas. achieved within the current decade. Despite signifi- for the main grid, with only one quarter of all funds
grammes for energy access in the world. At present, cant progress, we are however currently off-track to for electricity access targeted at connecting resi-
EnDev is striving to further develop and structure its This knowledge product aims to: meet the target. This guide showcases that key dential customers. Yet, off-grid electrification
learning and innovation (L&I) agenda with the market trends in the off-grid electrification sector solutions present a viable and sustainable option for
intention of sharing its results with the wider SDG7 • Contribute to an increase of sustainability and sustainability indicators should be considered access to electricity for more than 50% of SSA’s
community. The aim is that this shared knowledge practices within EnDev and other interventions in to accelerate the deployment and maximise the population. 2
can lead to both a higher pace of implementation the field of rural electrification through off-grid impact of off-grid electrification projects. The guide
and increased impact of the EnDev programme. The technology, focuses on Sub-Saharan Africa, the region with the The majority of off-grid products sold and installed
results shared can also inform similar initiatives in largest gap towards universal access. are still only meeting Tier 1 or below of ESMAP’s
the field. • Expand the knowledge and understanding of Multi-Tier Framework, despite plug-and-play solar
innovative and successful approaches resulting in home systems (SHS) having gained significant
Through the EnDev L&I Agenda, EnDev supports the implementation of sustainable off-grid energy Unprecedented efforts in the off-grid traction over the last decade. More and more mini-
EnDev implementers in the collection, analysis and projects, as well as related barriers to overcome, sector are needed to meet SDG 7 grid companies are also delivering access to electric-
sharing of findings and experiences of the imple- ity that is close to, or even better than, grid quality.
mentation of energy access activities. In addition, it • Actively strengthen EnDev’s new programming To be able to connect the close to 600m people
aims to provide learnings to a wider audience of phase (2021 to 2024), pilots and other without access to electricity in Sub-Saharan Africa
energy access practitioners. This report focuses on interventions. (SSA) by 2030, an unprecedented effort is required.
lessons learned from the EnDev programme man- The current COVID-19 pandemic has led to an
1 The Covid-19 crisis is reversing progress on
aged by GIZ and RVO, and from EnDev implement- This report first introduces the methodology em- increase of the people without access to electricity
energy access in Africa – Analysis - IEA
ers such as SNV, GIZ, HIVOS, Practical Action, AVSI, ployed to develop this guide and provides an over- in the region for the first time since 2013, and a
ADES, NIS and CLASP. view of different off-grid technologies. Following decline of energy access by 2% or 13 million people 2 IEA, ESMAP and the Mini-Grid Partnership
this, an overview of the current situation on access in 2020 compared to 2019.1 Current policies on all project slightly different figures for the
GIZ is leading the EnDev Learning & Innovation to electricity is provided, followed by an outlook of electricity access will be unable to outpace the contribution of off-grid technologies to
access to electricity, but all are projecting a
Agenda on Rural Electrification within EnDev. This the off-grid sector and current market trends that region’s population growth.
contribution beyond 50%
Practitioners’ Group on Rural Electrification aims to shape the latter. Finally, sustainability indicators that
bring together EnDev implementers and other directly contribute to reliable and affordable electric-
organisations to share and exchange successful ity access are derived
8 9
Digitalised systems, integrated Inclusion of market trends and
energy solutions and rural sustainability indicators in
industrialisation are the future of the off-grid projects will result in reliable
off-grid sector and affordable electricity access
Within the off-grid sector, key market trends beyond The ultimate goal of off-grid projects is the delivery
a reduction in the cost of technology are improving of sustainable, reliable and affordable electricity
companies’ effectiveness in delivering reliable and access. By recognising and including the key market
affordable electricity to customers. Some of the trends in off-grid projects, and by leveraging specif-
current trends include productive use, the digitalisa- ic sustainability indicators, organisations can accel-
tion of the sector, and the drive for SHS companies erate and enhance the realisation of their access
to offer increasingly diverse products and services. targets. This implies integrating the considerations
stemming from the financial, institutional, social,
The future of the off-grid space is determined by the technological and ecologic dimensions of sustaina-
leveraging of digitalised solutions and existing value bility into projects’ conceptualization and implemen-
chains to sustainably industrialise rural areas, and tation.
provide integrated electrification solutions that are
renewable, technology-agnostic and de- Sector coupling that leverages synergies between
mand-based. the rural electrification and industrialization sectors,
conducive regulatory frameworks, an enhancement
of the role of women as active agents of change
and the creation of mechanisms that enable scala-
ble circular economy principles in remote rural areas
are all identified as pre-requirements for timely
achieving SDG7.
Introduction
10
1 Introduction
This guide on the major factors impacting the sustainability of off-grid 1.4 Framing access to electricity 1.5 Introduction to
projects is a result of the EnDev Learning & Innovation Agenda. Its inten- off-grid technologies
tion is to provide EnDev practitioners and the broader community in the While the traditional definition of energy access The off-grid technologies considered within the
involves a connection to an electricity distribution guide are picoPV systems, solar home systems,
off-grid energy space with practical insights, lessons learnt and knowl- network, the definition in the rural electrification nano-grids and mini-grids. Collectively, the picoPV
edge applicable to the implementation of sustainable off-grid projects. sector has evolved to acknowledge that access systems and solar home systems are referred to as
to energy is not a binary variable. Instead, access “stand alone systems”.
to energy can be measured through dimensions
such as reliability, affordability, quality, duration PicoPV systems are low-capacity
1.1 What is this guide about? 1.3 How was this guide developed? and health & safety. In 2015, the World Bank devices providing either only light
developed the Multi-Tier Framework for Measuring (solar lanterns), or combine these
Despite the efforts of EnDev and many other inter- Beyond desk-based research, the main contents for Energy Access (MTF), which complements the with small-scale applications, such
national organisations (World Bank, AfDB, UN, this guide were developed through conducting binary definition of energy access through this as phone charging, radios or loud-
USAID, etc.), the goal of universal access to electrici- targeted interviews with staff of EnDev or its part- multi-dimensional approach. The MTF classifies speakers. The systems are composed of either
ty by the end of this decade remains elusive. Par- ners in EnDev countries that have placed a particular access to electricity for households through the singular units containing a solar panel and lamp(s),
ticularly in rural areas of Sub-Saharan Africa, univer- focus on off-grid energy interventions. These following criteria: 3 or units with a single lamp separated from a solar
sal access is not within reach, although good countries are: Ethiopia, Mali, Senegal and Uganda. In panel. PicoPV systems roughly range in size be-
progress has been made in selected countries. addition, an interview was conducted in the DRC • Tier 0: no or insufficient access to energy. tween 1 and 50Wp.4,5 In the MTF6, picoPV systems
with AVSI, an implementer of EnDev. Insights from can generally provide only Tier 0 or Tier 1 access.
Therefore, universal electrification efforts ought to the interviews have been utilised throughout the • Tier 1: reliable and affordable access to task
be accelerated and designed as effective as possi- guide, and relevant tables are highlighting some of lighting and phone charging. Solar home systems (SHS) are PV
ble to achieve maximum impact within a short the key learnings from these exchanges. systems with a separate solar panel,
timeframe. The guide analyses key market trends • Tier 2: electricity access for general lighting, battery and usage points, such as
and sustainability indicators in the picoPV, SHS, Brief interviews were also conducted with off-grid phone charging, television and fan if needed. lamps or plugs, connected to the
nano-grid and mini-grid sectors that can contribute practitioners for the development of case studies battery through cables. SHS can
towards the achievement of delivering reliable and which are interspersed throughout the guide. • Tier 3: Tier 2 applications and any medium-power serve several lighting points and larger systems
affordable electricity access. appliances (i.e. fridge). allow multiple uses, including phone chargers,
radios, small fridges, fans and TV sets. Typical SHS
• Tier 4: Tier 3 applications and any high-power range in size between 20Wp and 800Wp, though
1.2 Who is this guide for? appliances. smaller and larger SHS do exist. Solar systems for
institutions and commercial applications installed in
Stakeholders benefitting from this report include: • Tier 5: Tier 4 applications and any very high-power facilities such as schools, health centres, other
appliances. public institutions and travel lodges are considered
• The EnDev practitioners’ group, which has been within the category of “solar home systems” for the
consulted at various stages of the project. This The following section presents off-grid electrifica- purposes of this report, although these are losing
practitioners’ group includes representatives of tion technologies and how each fulfils the demands traction in favour of plug-and-play systems. SHS
GIZ, RVO, SNV, Practical Action and AVSI. of the outlined tiers. typically provide Tier 2 or Tier 3 access to electricity
in ESMAP’s MTF. Very large SHS mostly for commer-
• Practitioners in the off-grid space who would like cial applications or applications within social infra-
to implement sustainable projects delivering structures can be argued to provide Tier 3-4 access.
3 ESMAP, 2015.
long-term access to reliable and affordable
electricity.
4 https://energypedia.info/wiki/Features_of_
PicoPV_Systems
5 https://energypedia.info/wiki/Features_of_
PicoPV_Systems World Bank Document
6 https://mtfenergyaccess.esmap.org/
12 13
1 Introduction
Nano-grids are generally DC systems Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
of power capacity between 500Wp =3W capacity >=50W capacity >=200W capacity >=800W capacity >=2kW capacity
and 10 kWp installed in comparatively =4h/day supply >=4h/day supply >=8h/day supply >=16h/day >=23h/day
smaller communities that serve only >14 >14 >14
1 Introduction
East Africa
Burundi
West Africa DRC
Ethiopia
Benin Kenya
(Guinea) Malawi
Liberia Mozambique
Mali Rwanda
Senegal Tanzania
Sierra Leone Uganda
Hydro Grid extension Cooking energy Solar Biogas
Figure 2. Overview of EnDev countries in Sub-Saharan Africa with a focus on off-grid energy projects
Electricity
Access trends
16
2 Electricity Access trends
The vast majority of people without access to electricity now lives in 2.2 … however more work is left to be done
Sub-Saharan Africa. The ongoing COVID-19 pandemic is reversing some following the COVID-19 crisis.
of the progress on energy access made in the last decade, however de-
According to the IEA, the COVID-19 In both scenarios, countries such as Ghana, Kenya,
centralised energy solutions remain one of the most viable solutions for pandemic has significantly negatively Senegal, Ethiopia and Rwanda manage to achieve
rapidly electrifying millions of people. impacted progress towards universal universal access by 2030 through the effective and
access to electricity, especially in ambitious policies and programmes they had
decentralised energy. The pandemic already put in place prior to the crisis. In 2030, under
has resulted in a shift in government priorities and the STEPS scenario, it is anticipated that close to
2.1 Good progress on energy access was made in the last decade … supply chain disruptions. Necessary social distanc- 50% of the global population without access is
ing measures have rendered the installation and concentrated in only seven countries – Democratic
The International Energy Agency (IEA) defines a be attributed to a small number of countries, includ- operation of off-grid projects increasingly difficult. Republic of the Congo, Nigeria, Uganda, Tanzania,
household as having electricity access when it has ing Kenya, Senegal, Rwanda, Ghana and Ethiopia. In The effect is yet to be fully quantified, however first Niger, Sudan and Pakistan. 20 The six countries in
“reliable and affordable access to electricity, which Kenya, the access rate rose from 20% in 2013 to estimates by the IEA indicate that the overall popu- SSA are among the 20 fastest-growing countries by
is enough to supply a basic bundle of energy servic- almost 85% in 2019. The majority of progress in SSA lation without access to electricity in Sub-Saharan population, making this a main impediment in
es initially, and with the level of service capable of is a direct result of grid connections, but off-grid Africa has likely increased in 2020 for the first time limiting countries to achieve universal access to
growing over time“.7 The IEA considers that this systems have played an increasingly important role since 2013.13 Considering current population growth electricity.
basic bundle contains several lightbulbs, phone over recent years. rates, it is estimated that to achieve universal
charging, a radio and potentially a fan or television. access, approximately 940 million people would Indeed, when comparing the required progress to
Both access to electricity through the main grid and Around 15 million people were connected to mi- need to be connected to electricity by 2030.14 The be made by Sub-Saharan Africa with historic
through decentralised systems, including SHS, ni-grids in Africa by 2019 10, while the number of IEA has developed two different scenarios to project achievements, it can be posited that achieving
nano-grids and mini-grids, are counted as ’access people gaining access through SHS in SSA in- future energy access: The Stated Policies Scenario universal access within this decade requires un-
to electricity’. In contrast, the World Bank’s MTF creased from two million in 2016 11 to almost five (STEPS) highlights likely energy access results if precedented efforts. China took more than 30 years
Framework extends the definition of ‘access to million in 2018.12 The increase in SHS has been current and announced policies continue, and the to connect the final 600m people to electricity, and
energy’ to PicoPV products for Tier 1 as well, as long concentrated in a few countries: Kenya, Tanzania Sustainable Development Scenario includes recov- India has so far taken close to 20 years for the same
as they guarantee a high-quality, affordable, stable, and Ethiopia accounted for almost 50% of new ery plans and programmes that governments could feat, without having achieved universal access yet
sufficient (given size of household), convenient, connections in 2018. launch to accelerate energy access. (see Figure 3).
healthy and safe electricity consumption.
Under STEPS, there is a slowdown in progress in
13 https://trackingsdg7.esmap.org/data/files/
Data from the IEA indicates that 90% of the global 2020 and 2021 due to the crisis, and a projected
download-documents/2021_tracking_sdg7_
population now has access to electricity.8 In Sub- 660 million people who still do not have access to report.pdf
7 https://www.iea.org/articles/defining-ener-
Saharan Africa, despite electricity access outpacing electricity by 2030 due to Sub-Saharan Africa’s
gy-access-2020-methodology
population growth over recent years, the overall strong population growth. To bridge the gap, the 14 https://trackingsdg7.esmap.org/data/files/
picture is still bleak. Less than 50% of the population connection rate would have to triple from its current download-documents/2021_tracking_sdg7_
8 https://trackingsdg7.esmap.org/data/files/
report.pdf
is connected as of today, and close to 600m people download-documents/2021_tracking_sdg7_ level to nearly 90 million connections a year up to
still lack access.9 Much of the recent progress can report.pdf 2030.15 The Sustainable Development Scenario
15 ESMAP, 2019: Mini Grids for Half a Billion
considers that around $35 billion is needed annually People
9 https://www.iea.org/topics/energy-access
from 2021 to 2030 on access to electricity, fully
10 ESMAP, 2019: Mini Grids for Half a Billion tapping decentralised solutions.16 Under this scenar- 16 https://trackingsdg7.esmap.org/data/files/
io, it is estimated that almost two thirds of funding download-documents/2021_tracking_sdg7_
People
report.pdf
for electricity access should go to SSA.17 Until 2019,
11 IEA, 2017: Energy Access Outlook 2017 only approximately one quarter of funding commit- 17 https://trackingsdg7.esmap.org/data/files/
ted for access to electricity was directed towards download-documents/2021_tracking_sdg7_
12 IEA, 2019: Africa Energy Outlook
electricity provision for residential customers18 , with report.pdf
the remainder serving commercial and industrial
sectors, export and others.19 18 https://www.seforall.org/news/research-
shows-world-at-a-tipping-point-to-meet-
global-energy-goals-by-2030
19 https://www.seforall.org/data-and-evi-
dence/energizing-finance-series/energiz-
ing-finance-2019
20 https://www.iea.org/reports/sdg7-da-
ta-and-projections/access-to-electricity
18 192 Electricity Access trends
Despite the disruption caused by the COVID-19 pandemic in the early part of the decade, the outlook
for access to electricity indicates continued progress to 2030 but without achieving the goal of universal
access. The number of people remaining without access to electricity in 2030 is expected to decline under
the policies set out in IEA’s Stated Policies Scenario to 660 million (8 percent of the global population), of
Population without access (million people)
2.3 Projected contribution of off-grid systems to electricity access
whom some 555 million (or 85 percent) reside in Sub-Saharan Africa (figure 6.1). SDG target 7.1 remains
Historical Projections
600 within reach, and policies implemented in several countries have put them on track to achieve universal
In the Sustainable
access. The same Development
cannot be said Scenario
for manyby the IEA, isedcountries.
Sub-Saharan solutions have multiple advantages over grid
decentralised solutions will contribute to 55% of connections: They are faster to deploy, do not
500 Developing Asia remains on track 2019
to reach an accessrequire
rate ofsignificant
98 percent by 2030, an improvement
Sub-Saharan Africa new connections realised between and 2030, infastructure updates and allowof close
2018–30 to 20 percentage points since 2010. The
with slightly more people being connected through very populous countries of Bangladesh, India, Indonesia,
technologies to be deployed based on the particular and the
400 Philippines are on a pathway to reach full access before 2030; a few million people remain without access
India mini-grids (31%) than SHS (24%) (see Figure 4). 21
demand of a community.
in countries such as Pakistan. The region of Central and South America is projected to continue its steady
300 2002–18
China progress, moving to 99 percent in 2030, with22most of those remaining without access living in rural areas.
An analysis by the Mini-Grids Partnership (MGP)
Haiti remains the only major country in the region to have a substantial nonelectrified population.
1965–2000 presents a slightly more biased projection towards
200
mini-grids,
In many less with the MGP
well-off projecting
regions, that, to reach
the economic downturn caused by COVID-19 is compounding the difficulties
21 https://trackingsdg7.esmap.org/data/files/
100 universal
faced access to electricity,
by governments as theyapproximately
seek to alleviate46%energy
of poverty and expand access. Past progress on energy
download-documents/2021_tracking_sdg7_
access in many
connections parts
should beofrealised
Africa is being mini-grids,
through reversed: the number of people without
report.pdf access to electricity is set to
increase in 2020, while basic electricity
and only 11% through SHS. Finally, ESMAP esti-
23 services have become unaffordable for up to 30 million people who
previously had access. The COVID-19 crisis
mates are putting electrification through mini-grids has brought into stark relief the sizeable
22 Who We Are | Mini-Grids global inequalities in
Partnership
1970 1980 1990 2000 2010 2018 2030 access to reliable energy and health-care services, especially in rural and peri-urban areas, highlighting the
at approximately 41%, or close to 500m people
need to expand access to help populations
total. All analyses are however in agreement that
24 mitigate the effects of the
23 pandemic
Mini-Grids (IEA
Partnership 2020a).
2020, State of the
Achieving access for all in sub-Saharan Africa in only twelve years Global Mini-Grids Market Report
will require an unprecedented effort decentralised solutions will play a major role in
FIGURE 6.1 • Population without access to electricity in 2030, and delivery of electricity connections by technology
realising universal access to electricity. Decentral-
and region in IEA scenarios 24 ESMAP, 2019: Mini-Grids for Half a Billion
Figure 3 Historic achievements of India and China as compared to required achievement of Sub-Saharan Africa to People
realise universal access to electricity (IEA, 2019) Population without access to electricity in 2030 People gaining access by technology by 2030
under Stated Policies Scenario under Sustainable Development Scenario
700
Rest of the world
600
Rest of developing asia
500 Stand-alone
Rest of Sub-Saharan Africa systems
Population (millions)
24%
400 On-grid
Pakistan
45%
300 Sudan
Uganda
200 Mini-grids
31%
Nigeria
100
Dem. Republic of the Congo
0
Figure 4. Population gaining access to electricity as per IEA projections in the STEPS and Sustainable D
evelopment
Source: IEA 2020b.
Scenario, broken down by technology (IEA, 2019)
Population without access to clean cooking in 2030 Population using different fuels for cooking in developing countries
under Stated Policies Scenario by 2030 under Sustainable Development Scenario
160 2500 Other
Tracking SDG 7: The Energy Progress Report 2021
2%
2000
Electric
tion (millions)
Copyright: EnDev/GIZ 16%
Rest of the world
21
1500 LPG
Developing Asia2 Electricity Access trends
Topic DRC Ethiopia Mali Senegal Uganda
Electrification According to IEA, 47% access overall, 50% overall access, 71% overall access, 29% overall access,
situation 25 around 9% overall, 11% through off-grid 78% in urban and 94% in urban and 66% in urban and
with 19% urban and solutions; 96% 28% in rural areas 50% in rural areas 17% in rural areas
less than 1% rural, urban and 34% rural
however situation
difficult to access due
to size of country
Electrification • Target to reach 30% • Target of universal • No clear road to • ERIL approach in • Have electrification
planning 26 by 2030 very ambiti- access by 2030 electrification, Senegal focused on masterplan
ous Mapping not • O ff-grid playing a however mini-grids incentivising local • 683 solar mini-grid
done Focus on part as pre-electrifi- will play an import- investments in small sites included
large-scale projects cation and very rural ant role concessions in rural • SHS also outlined
• Essor project in DRC areas areas including SHS but companies ‘go
with planned mini • Most mini-grids to and mini-grids; where business is’
grids in 3 remote be developed by Determination of • Seeing potential of
cities for a total of public sector with technology following 25,000 mini-grids
25,000 household EPC tender assessment
and SME connec- • Access to electricity
tions (DFID, AfDB) is highly political
might be a game • Policy to cover
changer remaining commu-
nities with 61% grid
extension, 7%
(1.000) mini-grids,
32% SHS
Table 1. Electrification situation and electrification p lanning in the EnDev countries interviewed.
25 Source: IEA, World Energy Outlook 2020:
https://www.iea.org/reports/sdg7-da-
ta-and-projections/access-to-electricity
26 Based on interviews conducted
Off-grid solar
market and trends
223 Off-grid solar market and trends
Through the integration of key market trends in the design of off-grid pro- The implementation of mini-grids is differing vastly scattered, and it is difficult to estimate progress on
between countries. There are ‘early sector develop- electrification in general as well as total number of
jects, rural electrification practitioners can develop cutting-edge solutions ers’, such as Mali and Senegal, who have each mini-grids implemented. Table 2 on page 20 pro-
that provide maximum results to beneficiaries. By fostering distinct market implemented over 200 mini-grids over the last vides an overview of the number of mini-grids
decade, but are struggling with operations and implemented and planned in the EnDev countries
trends they can further shape the future of the sector. maintenance (see chapter 4 for more detail). There interviewed.
are ‘current focal points’ like Nigeria and Sierra
Leone, who are rapidly implementing a large number The market for stand-alone systems equally remains
of mini-grids. Finally, there are ‘high potential’ on a strong growth trajectory, with the sector being
3.1 Market size of the off-grid solar market markets such as Uganda and Ethiopia, which have projected to serve 823 million users globally by
not yet experienced the implementation of a signifi- 2030.30 Over the next decade alone, annual sales of
The off-grid solar sector, including picoPV, SHS, 10% of mini-grids were PV, in 2020 55% are purely cant number of mini-grids, but are undergoing stand-alone systems are projected to increase from
nano-grids and mini-grids, has grown considerably solar PV. 29 While the average mini-grid capacity preparations for scale-up in the (near) future. Of all 35m to 72m annually.
over the last decade. As of 2019, approximately 84m (taking into account the total of 2.37 GW) is at 427 EnDev countries assessed for this guide, the DRC
stand-alone systems (picoPV and SHS) were in kW/mini-grid, the majority of solar mini-grids falls appears to be the only one not fitting squarely into
utilisation by customers, and more than 5,000 under 100 kW. any category, considering its unique characteristics
nano-grid and mini-grid projects had been imple- in terms of size, security situation and logistical
30 GOGLA, 2020: Off-Grid Solar Market Trends
mented. 27 Of the 84m stand-alone systems, approx- challenges. The situation across the DRC is very
27 Mini-Grids Partnership, 2020: State of the Report
imately 18m were SHS and 66m picoPV systems. 28
Global Mini-Grids Market Report
In the mini-grid space, most projects so far have 28 GOGLA Off-Grid Solar Market Trends
been implemented in Asia, with the majority of Report 2020 80
72
projects currently under development being located
in Sub-Saharan Africa. Technology has equally 29 Mini-Grids Partnership, 2020: State of the
Annual Sales (in Millions)
Global Mini-grids Market Report 4%
undergone a shift over the last decade. In 2009, only 60
52
1% 0,4 % 3,2 % 0% 2% 6%
40 35
28 10 %
20
13 %
0
39 % 2017 2019 2024 2030
11 %
5,544 projects 5,544 projects 50 % Tier 1 and Above Below Tier 1
60 %
Figure 7. Projected sales of stand-alone systems by access level tier (GOGLA, 2020)
21 %
Asia Solar Hydro
Sub-Saharan Africa Diesel and/or HFO Solar hybrid
Island nations Biomass Wind
Latin America Other
Figure 5. Installed mini-grids by region (MGP, 2020) Figure 6. Installed mini-grids by technology (MGP, 2020)
24 253 Off-grid solar market and trends
3.2 Evolution of the off-grid solar market and technologies
The strong growth of the off-grid sector is anticipat- Nano-grids are comparatively CAPEX- and technol- ising solar mini-grids is that the PV and battery discussed above, off-grid (diesel) hybrid systems
ed to continue in the near- and mid-term future. ogy-intensive when compared to individual SHS for banks can be scaled down, saving valuable CAPEX still present the most viable commercial case for
Despite a slow move towards larger systems, the households, and their commercial viability yet investments and improving commercial viability. The mini-grids. These technologies may be accept-
majority of systems sold is still small-scale (Tier 1 or remains to be proven in Sub-Saharan Africa. So far, reduction in CAPEX investments can also be passed ed by EnDev, but only as part of an explicit
below). As more and more communities are being they have only been proven successful in Asia, on to end consumers through reduced tariffs, which broader transition of technology towards 100%
connected to the grid and receiving electricity where rural areas typically have a higher population is one of the key challenges in mini-grids (see Renewable Energy.
through nano- and mini-grids, the unelectrified density compared to villages in SSA. A similar chapter 4.2.1). However, some of the interviewees
population is increasingly remote. This contributes approach, whereby SHS are interconnected to one have noted difficulties with operating hybrid mi- Where suitable geographical conditions allow
to the remaining popularity of picoPV systems, as another, is called “swarm electrification”, which has ni-grids, considering that the gensets require for this, micro-hydro power plants (MHPP) are
well as the continuously falling costs of technology. proven to be workable where technology is of constant attention by operators who need to pur- regarded as an effective solution to ensuring
By now, the market for picoPV systems, in compari- sufficient standard and adequately installed. Exam- chase and refill fuel. The fuel itself is also vulnerable 24/7 electricity access without the need to rely
son to other technologies, is significantly more ples of these have been FlexGrid, SolShare in to theft. In some cases, the operational challenges on the diesel hybridisation approach or (still)
crowded in terms of active players and ability to Bangladesh, PowerBox in Mozambique, Solergie in of gensets have led to these gensets finally not expensive battery banks. MHPP technology has
supply, including manufacturers who sell non-brand Togo and other countries in SSA and South-East being used or maintained by the operators, leading traditionally been successful in Nepal and has
systems at prices close to branded systems. Regret- Asia. to quick deterioration and ultimate failure. successfully been piloted by EnDev in countries
tably, the quality of these systems is not always on such as Indonesia, Ethiopia and Rwanda. Never-
par with those that are quality certified (e.g. VeraSol), Full-scale mini-grids nowadays mainly use solar PV Similar to many donors, EnDev now follows a 100% theless, it is important to note the site-specific
contributing to a low consumer confidence in solar as a source of electricity, with some mini-grids still renewable energy policy. However, electrification nature of this technology and the relatively
products in some Sub-Saharan African markets (e.g. integrating a back-up diesel generator, making them from grid extensions and grid densifications are higher operational capacities compared to solar
Ethiopia). solar hybridised systems. The advantage of hybrid- often based on a partial fossil fuel mix. Similarly, as nano- and mini-grids.
Case Study:
SolShare – Swarm E
lectrification
SOLshare’s foundation was inspired by a team of PhD
students’ findings that the 4.3 million SHS deployed in
Bangladesh produce a surplus of 30% energy totalling USD 1
billion in unused energy value every year. The peer-to-peer
(P2P) electricity trading solution developed by SOLshare is
based on interconnecting these solar home systems to
enable consumers and producers to trade electricity directly,
without the need for an intermediary.
The IoT-driven software platform SOLbazaar that was
developed by SOLshare is a dynamic energy marketplace
that allows SHS users to sell their excess energy to other
SHS users or non-users who lack their own home systems.
SOLshare’s direct clients are the microfinance institutions
and NGOs that sell solar home systems to rural consumers
on microloans. Hence, SOLshare leverages existing distribu-
tion channels instead of selling products or services directly
to end users.
Copyright: SolShare
Figure 8. Interconnected solar home systems on Bangladeshi roof tops
26 273 Off-grid solar market and trends
3.3 Technology focus in EnDev countries DRC Ethiopia Mali Senegal Uganda
By 2019, EnDev had directly contributed to access to as well as related parameters (distance to grid, • Difficult to give exact • EEU has 29 diesel • Approx. 256 diesel • 260 installed by 2018 • Less than 20 currently
electricity for close to 3.9m people through off-grid density, accessibility etc.), known as a technolo- figure mini-grids, all opera- mini-grids implemen- (83 operational) implemented (mostly
solutions (1.9m picoPV, 1.7m SHS and 0.3m mini- gy-agnostic, demand-based, or push approach. • EnDev supported one ting. 11 in the process of ted, 150+ of which are • 302 under construction hydro)
grids), in addition to 1.5m people reached through • Developers mostly being grid connected being hybridised, and (300 GAUFF; 2 ASER) • New 40 implemented
grid and limited grid interventions.31 Table 3 on page The fundamental advantage of a demand-based target business/ • 5 micro-hydro power 80% of which are not • 272 planned (Islamic by GIZ Pro Mini-Grids
21 provides an overview of the technology focus of approach is that the deployed technological solution commercial customers mini-grids by EnDev, of operational Dev. Bank, PUDC, EU, will be 100% solar
the countries interviewed for this guide. matches the demand, and costs are optimised. which 2 operational • Mini-grids start working Abu Dhabi Fund) • k fW to implement 100
Instead of finding the right context for a specific • Limited number of when hybridised • Some mini-grids hybrid mini-grids
Interestingly, the EnDev program in Mali has devel- technology (which is a time-intensive process), the private mini-grids • Very few soar mini- starting to be intercon-
oped a novel approach that does not focus on the right technology is picked for the targeted commu- • Ministry of Water, grids nected by SENELEC
deployable technology (e.g. picoPV or mini-grids) as nity, saving substantial financial resources and Irrigation and Energy • One mini-grid suppor- • 48 of the 87 mini-grids
the primary driver of which systems to implement. efforts. now implementing 37 ted by EnDev so far, a implemented by EnDev
Instead, the decision on the optimal technology to mini-grids total further 8 in develop- still operational
be installed follows the evaluation of energy de- ment
31 EnDev Progress Report 2019
mand in the particular community to be addressed
Table 2. Mini-grids implemented in selected EnDev countries
Case Study: Greenlight Planet – Innovation in PicoPV
DRC Ethiopia Mali Senegal Uganda
Greenlight Planet, one of the world’s largest manufacturers and
distributors of picoPV and SHS products by number of customers, • Provision of technical • picoPV, SHS and • Demand-based • EnDev started as • EnDev focus until 2024 on SHS,
has confirmed that “innovation in picoPV is not dead“. The compa- support to local mini-grids focus, not technolo- pioneer for ERIL in some picoPV
ny develops a new range of picoPV (and SHS) products approxi- entrepreneurs and • For picoPV and SHS, gy-based 2006 (18 hybrid • EnDev strongly RBF-focused,
mately every two to three years, with the latest updates to the financing of EnDev supports • Currently mostly SHS mini-grids and 55 large scale for HHs, smaller for
products having included the add-on of pay as you go modules, stand-alone systems market (and with PUE communities with refugees, social institutions
the inclusion of a radio in a solar lantern and regular improvements for productive use demand) • Focus on building SHS from 2008-2010) (schools/ health centres) and PUE
to the lamp’s performance while keeping price points stable. (20) • Planning to imple- technical capacity • Scaling by EnDev • Technical assistance (coaching,
• Facilitation of access ment 8 solar • Developing mini- from 2010-2016 (69 enabling environment, associati-
Greenlight Planet is now intending to to finance mini-grids with EU, to grids for 2 villages hybrid mini-grids and ons, awareness)
further segment its customer base to • Focus on island be managed by with high residential 144 SHS villages) • COVID-19 Economic Relief Fund
enable the company to better target (Idjwi) cooperatives and PUE demand • Consolidation and for solar & cookstove companies
individual customers with products • Also looking at development of new including covering payments
beyond picoPV and SHS. Whereas the nano-grids solutions from from PAYG customers for a
sale of solar products requires compa- 2016-2021, and focus limited period.
nies to simply ‘cast a net’ over potential on sustainability • RBF: ‘smaller for refugees and
customers, the sale of add-on prod- challenge of existing host communities’
ucts requires a more targeted ap- systems • GIZ Pro Mini-Grids is installing 40
proach. Already, customers can up- • 2021+ EnDev as mini-grids (EU and BMZ financed)
grade from one SHS to another with pioneer for „mini-grid • KfW implementing 100 mini-grids
the company’s dedicated ‘upgrade’ 2.0“; Complimentary under GetAccess (EU and BMZ
program. Further products such as pay actions to strengthen financed)
as you go phones are now starting to market for stand-alo- • GIZ preparing a proposal to the
be marketed to customers. ne systems and shift Green Climate Fund for another
to maintenance 600 mini-grids.
• COVID Relief Fund for • Government is revising the
lost revenues of masterplan which will reflect
Figure 9 The Greenlight Planet’s ‘BOOM’, a mini-grid operators mini-grids potential.
picoPV product with integrated radio
Table 3. Focus of interventions by EnDev in the selected countries
28 293 Off-grid solar market and trends
3.4 Key market trends 3.4.2 Digitalisation
Seven key market trends have been identified that the integration of smart meters also allowed the
are already shaping the off-grid sector and will monitoring of customers. However, monitoring of
continue to do so in the future (refer to figure 16 on individual customers through smart meters is adding
page 40 for an overview). CAPEX costs as well as ongoing costs for data
Digitalisation in SHS is already far advanced and was delivery and analysis. Therefore, some developers
initially developed out of the necessity of being able continue to prefer traditional meters over smart
3.4.1 Productive use to track and monitor systems as well as payments. meters, relying on mobile money payments from
By digitalising SHS, companies have been able to customers as a proxy to determine consumption.
The integration of PUE into SHS and mini-/nano-grid allow customers to pay off products using mobile
programs is already well underway, including the money, and remotely switch them off in case of a With time, we are going to observe an increased
fostering of welding, freezing, milling and woodwork payment default. Combined, these features resulted application of artificial intelligence (AI) and machine
activities. DC appliances have been developed for in the “pay-as-you-go” revolution that has signifi- learning in SHS, nano- and mini-grids, informing
The productive use of energy (PUE) is a strong most of these activities, allowing productive use to cantly accelerated the distribution of SHS. In spite of generation assets when to use direct power from
enabler for moving households up the energy ladder. also play an increasingly important role for SHS. its strong growth in the last years, the “pay-as-you- the sun, when to recharge and discharge batteries
While access to electricity per se can increase the Interestingly, the wider inclusion of PUE into SHS/ go” approach must however still prove its success and when to switch on diesel gensets (for hybrid
quality of life (through e.g. lighting at night) and nano-grids is also increasing the incentives for and profitability, given the large levels of indebtment mini-grids). Artificial intelligence in SHS also allows
provide households with savings, it does not auto- mini-grid developers to pilot new business models that several pioneering companies have incurred, as these companies to now offer products & services
matically imply an increase in household income. (see Case Study 1 in page 26). Contrary to SHS/ well as a few bankruptcies in the sector (most beyond electricity (see section 7.4.3 below).
Through the productive use of energy, access to nano-grids, mini-grids’ main selling point has been notably Mobisol). Incorporating digitalisation also
electricity is used to perform a value-added process, to serve large productive loads. Nevertheless, in its enables companies to locate SHS using GPS coordi- With digitalisation, operating and maintaining
enabling the person with electricity access to provide essence SHS/nano-grids and mini-grids remain nates, facilitating customer follow-up and potential mini-grids becomes increasingly simple (and is
a product or service that can be sold in the commu- complementary in the type of customer they are repossessions. Some of these features are also justified in terms of increased up-front capital
nity. It is this additional income stream deriving from each best placed to serve. employed in picoPV systems, mostly to the extent investment as long as operational expenditures are
the productive use of electricity that enables the the products are financed on a pay-as-you-go basis. sufficiently reduced and increased accuracy in
customer to increase its overall monthly budget for EnDev has collected innovative approaches, trends billing and mini-grid monitoring enable the operator
electricity expenditures, thus enabling a step up in and learnings connected to PUE approaches in an The digitalisation of nano- and mini-grids has to optimize the system’s operation), allowing tradi-
the energy ladder. It should be noted that higher tier analysis as part of its Learning & Innovation agenda.32 advanced slower than for SHS and is still ongoing for tionally non-electrical industrial companies with
access is not in all cases more expensive than lower many projects. Nano- and mini-grids have a limited sound technical and financial management to also
tier access, and that payments for higher tier access radius of delivery within specific locations that are operate mini-grids.
differ significantly for payments for lower tiers (for well-known to the developers, making customer
example, electricity from mini-/nano-grids is typically follow-up easier than for SHS, which are far more
32 https://endev.info/moving-to-scalable-busi-
sold per kWh while SHS are paid off on a monthly scattered. Therefore, the pressure to digitalise
ness-cases-in-productive-use-of-ener-
basis). However, the move from picoPV to SHS as well gy-endev-presents-practical-analysis/ operations early on was lower for nano- and mi-
as a move up the energy tiers within technologies ni-grids than for SHS. The remote monitoring of
(e.g. from low to high consumption within nano-grids mini-grids initially focused on the generation assets,
or mini-grids), usually implies additional expenditures. with component suppliers also providing software
solutions and remote monitoring equipment togeth-
er with their products. Over time, mobile money and
30 313 Off-grid solar market and trends
Performance ratio
Systems efficiency
Potential production
Energy curtailment
Battery status Operational status
kWh consumed
Load behaviour
Figure 10 Visualisation of applied digitalisation in mini-grids (EnDev, 2020)
32 33Figure 39
3 Off-grid solar market and trends
Battery technologies used for installed mini-grids
Annual
Annual installations
installations Lithium-Ion (% of new (% of new installations)
Lithium-Ion
50 100%
3.4.3 Add-on Products & Service 44
Because SHS retailers are now able to This trend of additional products and services is 40 80%
remotely deactivate products, and accelerating across companies and markets, even- 32
customers are paying with mobile tually leading to a situation in which some of the 30 28 28 60%
26
money, some of the retailers are starting SHS companies could become rural product distrib-
to use deployed SHS as a type of “collateral” for the utors and service providers in their own right. The
20 32% 40%
purchase of new products or services. When pay- focus of these companies will then not be on the
ment for the new products or services is not made in provision of energy per se, but rather the establish-
time, the SHS retailer simply switches off the solar ment and growth of a significant rural customer 10 14% 14% 28% 20%
system, effectively leaving the customer in the dark base that can act as off-takers for a large variety of 0%
until payment has been effected. Analysing and products and services. The SHS companies will 0 0%
monitoring the data from SHS customers allows the effectively become an interface between remote 2015 2016 2017 2018 2019
companies to determine who the best repaying rural customers and broader national markets. Lead-Acid Lithium-Ion
customers are and what additional products or Other Lithium-Ion market share (%)
services they could be marketed to. Products and Some nano-grid and mini-grid companies have also
services sold include mobile phones, LPG cooking partnered with appliance suppliers (e.g. mobileSource: BloombergNEF, Carbon Trust,
Figure GIZ. Note:
11. Annual Only includes
installations project
of lead-acid data
and where information
lithium-ion batteries inregarding
mini-gridsinstalled battery technol-
(MGP, 2020)
ogy is available.
stoves, microfinance loans, insurances and others. phones, electric appliances) to bring their products
to communities covered by nano- and mini-grids to
enable customers to access high quality appliances,
in some cases with a financing model to enable
Figure 40
affordability and faster acquisition. Share of battery technologies used for installed mini-grids by region
Case Study: BBOXX – Fee for Service
Storage technology market share (%)
BBOXX, a UK-based self-declared ‘next generation
3.4.4 Battery innovation 1% 1% utility’ that manufactures and distributes solar home
systems to rural areas in Sub-Saharan Africa and parts
19%
The vast majority of SHS In addition to first-hand lithium-ion batteries, the 29% of Asia, has in the past attempted to sell solar systems
companies has already growing global electric vehicles market is opening to customers on a ‘fee for service’ basis. Customers
made the switch from up the opportunity for recycling these batteries and would pay a monthly fee for an unlimited amount of
Other
lead-acid to lithium-ion utilisation of second-hand lithium-ion batteries by time for having a solar home system installed and
batteries. Conversely, the majority of mini-grids and nano- and mini-grid developers, but also SHS and Lithium-Ion
operated within their home. Bboxx strongly believes in
some nano-grids are still installed with lead-acid picoPV companies. It should however be considered 80% a service culture,
Lead-Acid however has improved their model by
70%
batteries, considering their relatively lower up-front that second-hand batteries have high energy providing a set of options to customers ranging from
costs. Nevertheless, the dropping costs as well as densities which contribute to lower runaway tem- ownership, pay for repairs, and fee for service. The
physical and chemical properties of li-ion battery peratures (battery banks should be kept under 45°C options are designed to provide the customer’s choice
banks, especially in terms of higher depths-of-dis- during charging to avoid thermal runway). In con- and flexibility to continued after sales and service.
charge, longer cycle-lives and lower maintenance trast, lithium-ion-phosphate batteries have much Asia Sub-Saharan Africa
requirements, are enabling the technology to higher thermal runaway temperatures (180–250°C) Nowadays, BBOXX is starting to utilise the credit history
gradually become the new standard for application and thus pose a clear advantage in this regard. Source:
For BloombergNEF, Carbon Trust, GIZ. Note: 44 and 114 installed mini-grids with energy
from solarstorage
systemswere identified
to assess the in Asiaworthiness
credit and of
in nano- and mini-grids. Lithium-ion battery costs an integrated, sustainable development, the entire Sub-Saharan Africa, respectively. customers to provide additional upgrades. The products
have been falling more than 8% year on year for the recycling chain has to be supported in parallel in include electronic goods such as televisions, premium
last eight years,33 making them increasingly attrac- order to set up political directives, technical stand- TV bundles and phones which can be powered by
tive to nano- and mini-grid developers. ards, collection and recycling structures. Bboxx solar systems, but also cook stoves in line with
63 STATE OF THE GLOBAL MINI-GRIDS MARKET REPORT 2020 Bboxx’s new clean cooking service offer. Credit control is
managed by the ability to remotely turn off the solar
systems that customers already have. Further, BBOXX is
providing water pumps, and seeking to extend its
33 https://about.bnef.com/blog/behind-
value-added services to include insurances and microfi-
scenes-take-lithium-ion-battery-prices/
nance products, and tied to the sale of solar home
systems. The company is utilising its own platform called
‘PULSE’ to monitor and manage customer contracts and
Copyright: BBOXX
relationships.
Figure 12. BBOXX store in Katito, Kenia
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