Electrifying The Underserved

The report identifies a significant economic opportunity for undergrid minigrids in Nigeria, potentially saving distribution companies $30–60 million annually and generating $1 billion in annual revenue for operators. It proposes four business models—operator-led, SPV-led, cooperative-led, and collaborative SPV-led—to facilitate development and suggests that proof-of-concept projects in Nigeria could enable global scaling in areas where utilities cannot fully serve customers.

• Implementing 4,000 undergrid minigrid projects in Nigeria could result in annual savings of $30–60 million for distribution companies, $170 million in energy expenditures for communities, and $1 billion in annual revenue for minigrid owners.
• The report proposes four distinct business models for undergrid minigrid development: a private minigrid operator-led approach, a special purpose vehicle (SPV)-led model (which may include distribution company investors), a community-formed cooperative-led approach, and a collaborative SPV-led model with shared ownership and operation.
• While the undergrid minigrid concept is new and requires exploratory projects to refine models, successful proof of concept in Nigeria could lead to rapid scaling globally in regions where distributed energy resources can provide cost-effective power where utilities cannot.

APA

RMI (2019). Electrifying The Underserved. https://rmi.org/resources/undergrid-business-models/

Chicago

RMI. Electrifying The Underserved. 2019. https://rmi.org/resources/undergrid-business-models/.

Wikipedia

{{cite report |author=RMI |title=Electrifying The Underserved |date=8 October 2019 |url=https://rmi.org/resources/undergrid-business-models/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2019electrifying, author = {{RMI}}, title = {{Electrifying The Underserved}}, institution = {RMI}, year = {2019}, month = oct, url = {https://rmi.org/resources/undergrid-business-models/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }