Publication - Mini Grids and the Arrival of the Main Grid: Lessons from Cambodia, Sri Lanka & Indonesia

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Title

Mini Grids and the Arrival of the Main Grid: Lessons from Cambodia, Sri Lanka & Indonesia

Publisher

Energy Sector Management Assistance Program (ESMAP)

Author

Bernard Tenenbaum, Chris Greacen & Dipti Vaghela

Published in

December 2018

Abstract

One of the key concerns raised by the developers of mini grids is “what will become of my mini grid

when the main grid arrives?” This study attempts to answer this question, using recent experiences of Cambodia, Sri Lanka, and Indonesia, three pioneers in mini grid deployment in rural areas. It reveals that the concerns of mini grid developers are legitimate: Most mini grids were abandoned when the main grid arrived. There are, however, win-win approaches in each of these countries for smoothly integrating mini grid assets with the main grid. Moreover, these strategies have characteristics that bode well for scaling up, enabled by new technologies and innovative policies and regulatory frameworks.

Regulators and policy makers in a growing number of countries—including Cambodia, India, Indonesia, Nepal, Nigeria, Rwanda, Sierra Leone, Sri Lanka, and Tanzania—have issued or proposed

rules or regulations that address investors’ concerns about what will happen to their investments when the main grid arrives. These rules and regulations typically specify business options for previously isolated mini grids.

URL

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