Nigeria's First Commercial Undergrid Minigrid

The Mokoloki project, launched in February 2020, serves as a proof-of-concept for an 'undergrid' model in Nigeria, where a solar hybrid minigrid replaces a weak grid connection through a tripartite agreement between a utility, a developer, and the community. The project has demonstrated technical reliability of 99.9% and provided economic benefits, including reduced electricity costs for customers and lower technical and commercial losses for the utility. It utilizes an operator-led business model where the developer manages generation and operations while paying a fixed monthly distribution usage fee to the utility.

• The Mokoloki undergrid minigrid project achieved several economic and environmental outcomes in its first three months of operation: it reduced customer electricity costs by ₦20/kWh ($0.06/kWh), avoided approximately 15,000 kg of CO2 emissions, and created cost savings for the utility by reducing aggregate technical and commercial losses that had previously reached up to 70 percent in the area.
• The project serves as a successful implementation of a tripartite contract enabled by Nigeria's Mini Grid Regulation, proving the undergrid model is both technically and economically feasible. However, the partners noted that the contract negotiations were complex and suggested the need for a streamlined process and a standard template for future replications.
• The technical infrastructure consists of a scalable solar hybrid system with 100 kW solar PV, 192 kWh battery, and 88 kW diesel backup, achieving a reported reliability of 99.9 percent. Within three months, the system connected 230 residential, 48 commercial, 11 public, and 1 anchor customer.
• The project employs an operator-led business model where the developer (Nayo Tech) owns the generation assets and manages metering, billing, and maintenance, while the utility (IBEDC) owns the distribution assets. The developer pays the utility a fixed monthly distribution usage fee to ensure predictable revenue for the utility.

APA

RMI (2020). Nigeria's First Commercial Undergrid Minigrid. https://rmi.org/app/uploads/2020/07/Mokoloki_Project_Summary.pdf

Chicago

RMI. Nigeria's First Commercial Undergrid Minigrid. 2020. https://rmi.org/app/uploads/2020/07/Mokoloki_Project_Summary.pdf.

Wikipedia

{{cite report |author=RMI |title=Nigeria's First Commercial Undergrid Minigrid |date=July 2020 |url=https://rmi.org/app/uploads/2020/07/Mokoloki_Project_Summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2020nigerias, author = {{RMI}}, title = {{Nigeria's First Commercial Undergrid Minigrid}}, institution = {RMI}, year = {2020}, month = jul, url = {https://rmi.org/app/uploads/2020/07/Mokoloki_Project_Summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }