Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design

The document discusses the economic challenges of deploying clean energy mini-grids in Africa, noting high upfront costs and low revenues from poor customers. It aims to provide policymakers and donors with a toolkit of retail tariff and subsidy options to make mini-grids more profitable and sustainable for private investors.

• Mini-grids are projected by the International Energy Agency (IEA) to be the most economical way to provide over 40% of universal electricity access by 2030, specifically targeting the approximately 600 million people in Africa without electricity.
• The economic viability of mini-grids is hindered by high capital and operational expenses caused by low population densities and long supply distances, combined with low revenues from low-income customers who consume less electricity.

APA

Climate and Development Knowledge Network (2019). Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design. https://cdkn.org/resource/guide-smart-incentives-for-mini-grids-through-retail-tariff-and-subsidy-design

Chicago

Climate and Development Knowledge Network. Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design. 2019. https://cdkn.org/resource/guide-smart-incentives-for-mini-grids-through-retail-tariff-and-subsidy-design.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design |date=9 March 2019 |url=https://cdkn.org/resource/guide-smart-incentives-for-mini-grids-through-retail-tariff-and-subsidy-design |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2019smart, author = {{Climate and Development Knowledge Network}}, title = {{Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design}}, institution = {Climate and Development Knowledge Network}, year = {2019}, month = mar, url = {https://cdkn.org/resource/guide-smart-incentives-for-mini-grids-through-retail-tariff-and-subsidy-design}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }