Costs and Tariff Setting - Examples

Hybrid mini-grids wuld be cost-efficient without subsidies if the poorest segment of the population could pay 4,700 to 5,000 FCFA (7-8 EUR).

If the payment capacity is lower than that of the ‘optimal’ villages, the supply should be limited to two or three, instead of four service levels which better correspond to the group needs of the middle income segment. Fulfilling energy needs of the richest segment results in a considerable reduction of the profitability index.

If no investors are motivated to participate in the projects after these last considerations, then management lead by communal associations, which focus more on the benefits electrification, will reduce the amount of profit required and consequently the necessary subsidies .

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