Mechanisms for Mini grid Deployment in Africa Yezi Lyu Guided by Jonathan Phillips Victoria Plutshack Table of Content Background Project overview Methods Deliverables Background ID: 843530
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1 Exploring different Financing Mechanism
Exploring different Financing Mechanisms for Mini - grid Deployment in Africa Yezi Lyu Guided by Jonathan Phillips, Victoria Plutshack Table of Content ⢠Background ⢠Project overview ⢠Methods ⢠D
2 eliverables Background â logistics â
eliverables Background â logistics ⢠Among the 68 African countries, 46 have access to electricity rate less than 85%. On average 63%. ⢠Thereâs a need to scale up the deployment of mini - grids
3 to reach the last mile customers who ar
to reach the last mile customers who are off - grid. Background â two financing mechanisms ⢠Auctions: competitive procurements or minimum subsidy tenders ⢠Agreement based, competitive selection, usu
4 ally have lots or specific sites ⢠Res
ally have lots or specific sites ⢠Results - based financing (RBF): output - based aid or performance - based grants ⢠Based on output connections made, non - competitive selection ⢠Hybrid: different i
5 n selection and disbursement. Project ov
n selection and disbursement. Project overview ⢠Local governments and international organizations need to have supportive programs to reduce risk for developers and lower connection costs for rural custo
6 mers. ⢠Subsidies disbursed via auctio
mers. ⢠Subsidies disbursed via auctions or RBF are important financing support to the nascent mini - grid market in Africa. ⢠How and When to apply and choose between the different financing mechanisms
7 is an important question to answer. Met
is an important question to answer. Methods ⢠Identified 22 least connected countries in sub - Saharan Africa, exploring their costs, goals, and experiences to finance mini - grids. ⢠Summarize the key
8 factors as important statistics and ask
factors as important statistics and ask key questions, analyze the results according to different financing mechanisms (auction/RBF/hybrid) ⢠Expected connection ⢠Component costs ⢠Types of target de
9 velopers (international/local) ⢠Site
velopers (international/local) ⢠Site selection methods (top - down/bottom - up) ⢠Funding body ⢠Technical assistance ⢠etc Deliverables â stats and graphs Deliverables â stats and graphs com
10 petitive Non - competitive Output - base
petitive Non - competitive Output - based Agreement - based Deliverables â stats and graphs Hybrid case summaries ⢠Overall itâs hard to draw conclusion on whether RBF or Auction is better, since most
11 projects are under early development â
projects are under early development ⢠Project design of hybrid cases can produce useful lessons ⢠Zambia - BGFZ ⢠Togo - Rural electrification project ⢠Niger - Niger Solar Electricity Access Pro