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The International Renewable Energy Agency IRENA recently released a microgrid saying that the capacity of the global solar mini-grid increased from 11 MW in 2008 to about 308 MW
by the end of 2017.
The decisive factors for the development of microgrids are mainly legal and licensing terms, cost recovery, tax rate regulation, and access to
financing.
Appropriate policies and regulations are essential
for the development of mini-grids around the world.
This is the main conclusion
of the IRENA policy and regulatory report on renewable energy minigrids.
The agency provides case studies in Indonesia, Peru, Nigeria, Rwanda, Sierra Leone, Tanzania, Cambodia and India, and provides insights into its rules and actions
to support electrification of off-grid areas through mini-grids based on solar and hydropower.
"The analysis found that not all factors are equally important to all types of mini-grids, and that policymaking can benefit from a deeper understanding of various technology combinations, delivery models and levels of access," the study said
.
The development of renewable energy mini-grids in Asia is led by governments, the private sector and communities, and is the most populous region providing electricity from microgrids, followed by Africa, where the number of African citizens covered by microgrids has increased from more than 200,000 in 2008 to 1.
3 million
in 2016.
"This trend will continue given the increasing competitiveness of renewable energy mini-grid solutions and the country's efforts to expand their deployment," IRENA added
.
"The efforts of governments and private investors are necessary because public financing needs to be supplemented by private funding while ensuring equitable services for the most vulnerable and marginalized communities," the report said.
The lack of innovative regulations and provisions is considered a key issue
for microgrids because traditional energy policy and regulatory frameworks fail to properly assess the different cost structures of minigrids, as well as the size and economic status of consumers.
The report adds that the introduction of national-level development targets related to renewable energy technologies could also be a good move
to improve electricity supply through microgrids.
The International Renewable Energy Agency IRENA recently released a microgrid saying that the capacity of the global solar mini-grid increased from 11 MW in 2008 to about 308 MW
by the end of 2017.
The decisive factors for the development of microgrids are mainly legal and licensing terms, cost recovery, tax rate regulation, and access to
financing.
Appropriate policies and regulations are essential
for the development of mini-grids around the world.
This is the main conclusion
of the IRENA policy and regulatory report on renewable energy minigrids.
The agency provides case studies in Indonesia, Peru, Nigeria, Rwanda, Sierra Leone, Tanzania, Cambodia and India, and provides insights into its rules and actions
to support electrification of off-grid areas through mini-grids based on solar and hydropower.
"The analysis found that not all factors are equally important to all types of mini-grids, and that policymaking can benefit from a deeper understanding of various technology combinations, delivery models and levels of access," the study said
.
The development of renewable energy mini-grids in Asia is led by governments, the private sector and communities, and is the most populous region providing electricity from microgrids, followed by Africa, where the number of African citizens covered by microgrids has increased from more than 200,000 in 2008 to 1.
3 million
in 2016.
"This trend will continue given the increasing competitiveness of renewable energy mini-grid solutions and the country's efforts to expand their deployment," IRENA added
.
"The efforts of governments and private investors are necessary because public financing needs to be supplemented by private funding while ensuring equitable services for the most vulnerable and marginalized communities," the report said.
The lack of innovative regulations and provisions is considered a key issue
for microgrids because traditional energy policy and regulatory frameworks fail to properly assess the different cost structures of minigrids, as well as the size and economic status of consumers.
The report adds that the introduction of national-level development targets related to renewable energy technologies could also be a good move
to improve electricity supply through microgrids.
