Ethiopia is currently trying to set up a methodology for the calculation of electricity tariffs for mini-grid systems. Should the government’s work come to fruition, it can provide much-needed certainty to mini-grid investors.
The African Development Bank is providing around $56 million to fund a program to bring electricity to around 900,000 households in sub-Saharan Africa by 2025. The financial institution will also provide African distributed energy service companies with critical technical guidance and credit enhancement.
The funds will be used for electrification projects in West Africa and the Sahel to bring electricity to 1.7 million people.
The computer-based algorithm seeks to make the micro-grid work like a large power grid with inertia, thus improving its stability and reliability.
In terms of micro-grids, key to reducing diesel consumption by renewables are efficient PPAs, finds consultancy THEnergy, noting that the complexity of these contracts is much greater than in the case of grid-connected photovoltaic systems.
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