In a new report, the World Bank concluded that subsidies per connection for small, private rural utilities called mini-grids are often significantly less than subsidies received by the large, public main grid.
Less than 15% of $1.7 billion of investment in off-grid energy between 2010-2018 went to mini-grids. Yet $10-25 billion is needed annually to bring electricity to 450 million people by 2030 via renewable energy mini-grids. Investors believe the missing catalyst to unlock private capital is results-based finance (RBF).
The remoteness and complexity of off-grid energy systems can pose substantial operational challenges. Implementing remote monitoring and management offers concrete cost reduction and reliability. IoT can enable electrification across rural regions with smart, renewable energy to support economic development.
2 billion smallholder farmers are among the most underserved populations in the world. Better access to clean energy has the ability to transform agriculture and speed econonic development, says Factor[e], but financial, operational, technical, and policy barriers need to be overcome.
Our latest video takes a closer look at the potential for decentralized renewables like mini-grids to unlock an explosion of agriculture productivity and jobs in Sub-Saharan Africa and developing Asia.
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