Analysis of the categories of the sustainability dimensions to achieve sustainable mini-grids
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Date
2023
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National University of Lesotho
Abstract
Taking into consideration the rise of mini-grids globally, their important contribution in reaching the universal access to energy goal, and the uneconomic costs of national grid extension to certain areas, it is only befitting that mini-grids are studied extensively. This study intends to find the variables of a sustainable mini-grid and what makes a mini-grid sustainable, analysed and identifies the sustainability of the different models of mini-grids and finally finds which mini-grid business model is sustainable and is better suited Lesotho in order to raise the countries electricity access and better the populations livelihoods. The study assesses the categories of four (the community-owned, private, Public-Private Partnership (PPP), and utility business models) sustainability dimensions of mini-grids across selected countries with similar conditions to Lesotho. It shows that for a mini-grid to survive throughout its lifetime it has to adequately satisfy the economic, environmental, institutional, social, and technical sustainability dimensions.
The developer-consumer and the multi-tier frameworks developed by James Knuckle (2016) and the World Bank (2015) respectively were used in the assessment of the categories of sustainability dimensions for all four mini-grid business models. With the help of the frameworks, the study findings show that the PPP and private mini-grids proved to be the closest models to sustainability in all the assessed categories and dimensions failing in the cash recovery and affordability categories respectively. They are followed by community mini-grids which fall back on some categories ( cash recovery,tariff coverage of the operations and maintenance and tariff setting) for this reason are not sustainable. The PPP model has similar operations to utility mini-grids, as suggested by the frameworks, but has proven to be slightly better in a few categories. Utility minigrids are the furthest from sustainability of the studied mini-grids. They failed in the cash recovery category, failed to have tariffs covering their O&M cost, have low tariff settings and have limited power supplied to their customers.
From the already existing research on mini-grid models in Lesotho, suggestions are provided for Lesotho and its upcoming mini-grids. The study shows that a combination of private and community mini-grids is found to be the best uptake provided there are subsidies to help people afford the cost-reflective tariffs.