FATE Financial Assessment Tool for Electrification

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MEI's Financial Assessment Tool for Electrification (FATE) is designed to establish the financial viability of mini grid and solar home system (SHS) projects in rural areas of Nigeria. This tool is addressed to companies, project developers, financiers, and policy makers. The tool is elaborated in a dynamic format, linking all inputs and outputs together, making it easy for the end-user to evaluate electrification projects according to different criteria including: revenues, expenses, and company's financial situation.

This tool is especially adapted for electrification plans of rural villages in Nigeria, where mini grids and solar home systems are affordable solutions for the population. Within this context, the tool estimates the financial feasibility of electrification projects for rural villages using mini grids and SHS. According to the population distribution, some habitants will be connected to a mini grid, while others will receive SHS.

The results are provided in the form of graphs displaying the project performance over time (expenses, revenues, net cash flow…), along with KPI calculations, including internal rate of return (IRR) and the net present value (NPV). The projects are assessed for 25 years, with an analysis conducted on a yearly basis.

1. download link 1 to tool (Excel file) #currently under development
2. download link 2 to user manual# (still under development)
3. Video with guidance# (still under development)

Figure 1 Schematic description of MEI's financial feasibility assessment tool

Click here to visit the FATE financing source database entry...