Mini-grids boom in Sub-Saharan Africa as clean energy drives growth

Of the top 20 countries with extensive access to electricity via mini-grids, nearly half

are located in Sub-Saharan Africa.

In the region alone, the number of installed connections almost doubled between 2019 and 2021, from 40,700 in December 2019 to more than 78,000 in December 2021.

The State of the Global Mini-Grids Market Report 2024 released today (14 August) suggests that mini-grid installations in 2024 will be around six times higher than in 2018.

This growth is particularly notable in Sub-Saharan Africa, where mini-grids are recognised as a feasible solution for electrification in remote areas.

According to the report, there are many reasons behind the mini-grid sector’s growth – from enabling policies to innovative business and financing models.

“Several governments are tailoring regulatory processes for different mini-grid scales to enhance flexibility and reduce costs,” the report reads.

“Meanwhile, cost recovery tariffs, using a cost-based formula for calculating revenue requirements, have become common in mini-grid markets, including countries like Ethiopia, Kenya, Nigeria, Tanzania and Zambia.”