Difference between revisions of "Publication - Solutions for the Missing Middle: The Case for Large-Scale Mini-Grid Development"

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{{Pub Database
 
{{Pub Database
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|Pub Title=Share: Solutions for the Missing Middle: The Case for Large-Scale Mini-Grid Development
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|Pub Title=Solutions for the Missing Middle: The Case for Large-Scale Mini-Grid Development
 
|Pub Organization=Global Green Growth Institute
 
|Pub Organization=Global Green Growth Institute
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|Pub Author=Gulshan Vashistha and Eric Plunkett
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|Pub Author=Gulshan Vashistha, Eric Plunkett
 
|Pub Month=September
 
|Pub Month=September
 
|Pub Year=2017
 
|Pub Year=2017
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Furthermore, this Insight Brief make the economic and environmental case for solar PV plus ESS mini grids and offers recommendations for how governments, project developers, utilities, and other stakeholders can rapidly develop the energy access market and the 250 GW “technology switching” market for solar PV-diesel hybrid mini grids.
 
Furthermore, this Insight Brief make the economic and environmental case for solar PV plus ESS mini grids and offers recommendations for how governments, project developers, utilities, and other stakeholders can rapidly develop the energy access market and the 250 GW “technology switching” market for solar PV-diesel hybrid mini grids.
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|Pub Topics=Energy Access, Mini-grid
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Executive Summary:
 
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More than one billion people lack access to electricity, 80% of whom live in remote areas and small islands. For these populations, extending centralized electricity grids is not financially viable.2 Moreover, small off-grid electricity solutions, such as solar home systems (SHS), are unable to scale quickly enough to meet projected electricity demand. Therefore, to ensure affordable universal energy access by 2030 – one of the United Nation’s Sustainable Development Goals (SDG) –
 
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there is an urgent need to scale investment in mini grids, the “missing middle” between central grid extensions and small off-grid systems.
 
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Technological advancements in solar photovoltaics (PV) have reduced costs by roughly 80% since 2009, while energy storage systems (ESS) have made similar progress in the past few years.4 Using a combination of GGGI project data and publicly available data, this Insight Brief demonstrates that solar PV plus ESS mini grids are now cost competitive with diesel mini grids, often more affordable than grid extensions, and offer significant bankable investment opportunities in the technology switching and energy access markets.
 
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GGGI estimates that the global market for technology switching – converting existing diesel mini-grid electrification systems to solar PV-diesel hybrid systems – is USD 550 billion and could reduce up to 470 million metric tons of carbon dioxide (CO2) emissions annually, equivalent to Brazil’s annual CO2 emissions from all sectors.5 With relatively low upfront capital requirements, this market can quickly attract private investment, provided that safeguards, such as clear
 
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offtake structures and bankable power purchase agreements, are in place.
 
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Building on the technical expertise and economies of scale gained through technology switching, project developers, utilities, and investors can develop the larger energy access market. Critical barriers to investment include high upfront capital expenditure, credit risk of remote communities, and the lack of enabling regulations. Public and private sector stakeholders can overcome these barriers by identifying “anchor clients” with predictable energy demand and access to capital, creating new business models that reduce upfront and transaction costs, and developing supportive regulatory frameworks and incentives, among other potential solutions.
 
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With proven technology, a clear economic case, and two potential markets, solar PV plus ESS mini grids are poised to scale rapidly to reduce emissions and achieve affordable universal energy access. To do so, governments and utilities must support their development through national energy planning that recognizes decentralized off-grid renewable energy generation as a viable alternative to grid extension, as well as policies and regulations that mobilize investment in the sector
 
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|Pub Topics=Energy Access, Mini-grid, Renewable Energy, Solar
 
 
|Pub Download=http://www.greengrowthknowledge.org/resource/solutions-missing-middle-case-large-scale-mini-grid-development
 
|Pub Download=http://www.greengrowthknowledge.org/resource/solutions-missing-middle-case-large-scale-mini-grid-development
 
|Pub Newsletter=No
 
|Pub Newsletter=No
 
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}}
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[[Category:Energy_Access]]
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[[Category:Mini-grid]]

Latest revision as of 09:34, 18 December 2018


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Title
Solutions for the Missing Middle: The Case for Large-Scale Mini-Grid Development
Publisher
Global Green Growth Institute
Author
Gulshan Vashistha, Eric Plunkett
Published in
September 2017
Abstract
This Insight Brief "Solutions for the Missing Middle: The Case for Large-Scale Mini-Grid Development" published by the GGGI demonstrates how mini grids powered by solar photovoltaics (PV) and energy storage systems (ESS) can provide energy access to 800 million people who do not live near a centralized electric grid. Solar PV plus ESS mini grids occupy the “missing middle” between smaller-scale off-grid solutions that provide limited energy services and expensive centralized grid extensions. Furthermore, this Insight Brief make the economic and environmental case for solar PV plus ESS mini grids and offers recommendations for how governments, project developers, utilities, and other stakeholders can rapidly develop the energy access market and the 250 GW “technology switching” market for solar PV-diesel hybrid mini grids.
URL
link to the document


Admin:
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