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In Nigeria, thousands of rural communities are underserved but, the introduction of undergrid microgrids can change all that. Implementing 4,000 minigrids has the potential to save Nigerian distribution companies anywhere from $30 to 60 million while offering minigrid owners nearly $1 billion in revenue and saving communities $140 million in expenditures.
A new report by Rocky Mountain Institute [3], Clean Tech Hub, and Energy Market and Rates Consultants has been released explaining the complexity behind undergrid minigrid business models in order to help accelerate the market and enable stakeholders to take action.
The report describes four business models as practical solutions to guide stakeholders through the process of implementing minigrids that can be used under today’s social, political, and economic environment, including:
MINIGRID OPERATOR-LED, where a private minigrid operator leads development of the minigrid with consultation across the DisCo and community.
SPECIAL PURPOSE VEHICLE (SPV)-LED, where development is led by an SPV (potentially formed by a DisCo’s investors) and certain specialized functions are subcontracted to a minigrid operator.
COOPERATIVE-LED, where a cooperative formed by the community leads minigrid development.
COLLABORATIVE SPV-LED, where ownership and operation functions are shared among the minigrid operator, community cooperative, and DisCo investors.
