Improving the supply side for solar mini grids in fragile contexts
The supply side of mini grid development comprises factors that encourage or hinder investments and decisions of mini grid developers and investors to enter a market. A range of factors affect the supply side, including economic dynamics of a market, costs of key components, the state of supply chains and labour capabilities, availability of reliable data and geospatial planning tools, and enabling and complementary sectors, such as financial inclusion. Understanding how these factors affect mini grid deployment can inform efforts to improve them.
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Mahmood Policy toolkit September 2024.pdf
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This paper provides evidence to inform policy decisions around improving the supply side for deploying solar mini grids, including on lowering real and perceived risks associated with fragile and conflict-affected situations (FCS), improving the business environment, regulatory framework, financing, and supply chains for solar mini grids.
It also explores the enabling and complementary sectors where investments need to be made for electrification to have a transformative impact on people’s lives and how to build local capacity to support development of a solar mini grid sector. It also covers the various costs of solar mini grid deployment and what elements are driving cost reductions in the sector.
Improving factors that affect the supply side of mini grid deployment requires efforts from a range of stakeholders, including donors, philanthropic entities, private manufacturers and energy project developers. Consequently, this paper outlines important lessons for other key stakeholders too.