The CrossBoundary Mini-Grid Innovation Lab works with mini-grid developers and utilities to test innovations that reduce cost, increase consumption per customer and develop a smarter, more integrated grid.
P4G provided this partnership with US $97,960 in grant funding to test tariff reduction and support local developer scaling.
The partnership’s research found that by providing electricity at lower tariffs, more people can consume more energy giving developers the same or increased revenue. By trialing tariff reductions on mini-grids at scale, the partnership aims to prove the case for subsidies supporting efficient solar generation through mini-grids. The partnership began by conducting a country prioritization exercise based on market realities and existing relationships, eventually focusing on Sierra Leone.
CrossBoundary Mini-Grid Innovation Lab found that local developers are not scaling at the same pace as international developers, reducing the sector’s ability to meet global energy access targets. The main barriers are local developer financing access, local developer fundraising experience and financier willingness. The Lab aims to co-create solutions with developers and investors to address these barriers
Ultimately, the partnership expects that tackling these two components can generate a market for mini-grids, support the scaling of mini-grid developers on the continent and reducing the number of Africans left without electricity access.
Kenya , Sierra Leone,