Improving Reliability for Underserved Communities

This policy brief by RMI examines the 'undergrid minigrid' model piloted in Mokoloki, Nigeria, and discusses its potential application to improve electricity reliability for underserved rural communities in India. The model involves a privately owned solar minigrid sharing existing distribution infrastructure with a utility company to provide reliable last-mile service.

• The 'undergrid minigrid' model, piloted in Mokoloki, Nigeria, allows a private solar minigrid to provide reliable last-mile electricity to 'undergrid' customers—those connected to the main grid who receive unreliable or no service. Unlike fully interconnected minigrids that buy and sell power, undergrid minigrids share the distribution company's infrastructure, with the developer paying a usage fee to the utility.
• Rural electrification in India and Nigeria faces significant technical and financial hurdles. In India, while distribution networks reach 100 percent of inhabited census villages, distribution companies face aggregate technical and commercial losses of up to 40 percent, with US$13 billion of electricity service remaining unbilled annually.
• Evidence from the Mokoloki pilot suggests that customers are willing to pay two to five times more than standard grid tariffs for electricity that is clean, reliable, and offers stable voltage and good customer support. This increased cost is offset by the reduced need for energy alternatives such as kerosene, batteries, and fossil-fueled generators.
• For the undergrid model to be successfully translated to India, the brief argues that state or national regulations must eliminate redundant networks and clearly define the mechanisms for minigrids to use existing distribution networks. While states like Odisha, Madhya Pradesh, and Uttar Pradesh have policies enabling minigrid interconnection, a more integrated approach is needed to serve the 100 million rural Indian households with unreliable supply.

APA

RMI (2020). Improving Reliability for Underserved Communities. https://rmi.org/resources/improving-reliability-for-underserved-communities/

Chicago

RMI. Improving Reliability for Underserved Communities. 2020. https://rmi.org/resources/improving-reliability-for-underserved-communities/.

Wikipedia

{{cite report |author=RMI |title=Improving Reliability for Underserved Communities |date=14 August 2020 |url=https://rmi.org/resources/improving-reliability-for-underserved-communities/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2020improving, author = {{RMI}}, title = {{Improving Reliability for Underserved Communities}}, institution = {RMI}, year = {2020}, month = aug, url = {https://rmi.org/resources/improving-reliability-for-underserved-communities/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }