Nigeria’s First Commercial Undergrid Minigrid

The Mokoloki undergrid minigrid project in Ogun State, Nigeria, has demonstrated the feasibility of providing reliable solar power to communities that are connected to the national grid but suffer from unreliable supply. Through a tripartite partnership between the Mokoloki community, Nayo Tropical Technology, and the Ibadan Electricity Distribution Company (IBEDC), the project has achieved 100% collection rates and doubled its revenue within 18 months. The system, comprising 100 kWp solar PV and battery storage, has significantly improved energy reliability compared to the previous utility service and is driving local economic growth by supporting productive uses of electricity for commercial customers.

• The Mokoloki undergrid minigrid has proven financially viable, with revenue doubling within the first 18 months of operation. The project's average revenue per user is twice that of a comparable off-grid site in Nigeria, supporting the hypothesis that undergrid minigrids benefit from the more robust economic activity found in peri-urban areas.
• The project has significantly improved energy reliability for the community. While the Ibadan Electricity Distribution Company (IBEDC) previously provided only four to five hours of electricity per day, the minigrid has never experienced an outage lasting five hours.
• Commercial customers are critical to the minigrid's financial sustainability; although they represent only about 9% of the total customer base, they contribute 45% of the total revenue. This reliable power has enabled businesses such as welders, bakers, and mills to prosper and has attracted new businesses to the area.
• The project utilizes a tripartite agreement between the community, the minigrid operator (Nayo Tropical Technology), and the distribution utility (IBEDC). This arrangement benefits IBEDC by eliminating financial and technical losses associated with serving the community and providing the utility with fixed annual payments.
• Technical specifications of the minigrid include 100 kWp solar PV, 194 kWh battery storage, and an 88 kW diesel backup generator, generating an average of over 5,500 kWh of solar energy per month. Operating costs during the first 15 months were approximately one-third of total revenue.

APA

RMI (2022). Nigeria’s First Commercial Undergrid Minigrid. https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf

Chicago

RMI. Nigeria’s First Commercial Undergrid Minigrid. 2022. https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf.

Wikipedia

{{cite report |author=RMI |title=Nigeria’s First Commercial Undergrid Minigrid |date=February 2022 |url=https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022nigerias, author = {{RMI}}, title = {{Nigeria’s First Commercial Undergrid Minigrid}}, institution = {RMI}, year = {2022}, month = feb, url = {https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }