Powering Small-Format Electric Vehicles with Minigrids

The report evaluates the integration of small-format electric vehicles (EVs) with rural minigrids, finding that while EVs can be cost-competitive with petrol alternatives, their success depends on high vehicle utilization and business models tailored to local needs. A Nigeria pilot using a two-wheeler leasing model showed promise, whereas an India pilot using a battery leasing model for three-wheelers failed due to high operational costs and drivers charging via the subsidized grid. Technoeconomic modeling indicates that EV charging can lower minigrid tariffs, particularly when charging occurs during daytime solar production, though the impact is modest unless fleet utilization is significantly increased.

• Small-format electric vehicles, specifically two- and three-wheelers, can achieve cost parity or be more cost-competitive than petrol-powered alternatives across a wide range of energy prices on a total cost of ownership (TCO) basis.
• In the Nigeria pilot, a business model leasing electric two-wheelers (E2Ws) to certified drivers proved feasible, with investments expected to pay back within the vehicle's 10-year lifespan. Payback periods could drop from approximately nine years to four years if daily vehicle utilization increased from 50% to 80%.
• The India pilot, which leased lithium-ion batteries to electric three-wheeler (E3W) owners at a biogas minigrid, was discontinued because drivers bypassed the minigrid to use cheaper, subsidized grid power near markets, and the operator faced high rural operational costs.
• Adding EV charging loads to a minigrid increases electricity sales and can lower the tariff required to recoup investment, though the effect is small at low adoption levels. In an optimized Nigerian minigrid, a fleet of five E2Ws reduced the tariff by 1%, while a fleet of 10 vehicles with 80% utilization reduced it by 6%.
• Daytime charging of EVs is more economically and environmentally beneficial for solar-hybrid minigrids than nighttime charging. Daytime charging reduces costs by 1%–2% due to higher solar utilization and lower diesel use, and can reduce carbon emissions per kWh by 8% in high-load scenarios.
• Vehicle utilization is the primary driver of revenue and cost advantages for EV operators. The report notes that current models may suffer from range anxiety or insufficient hauling capacity, suggesting that future pilots must prioritize customer research to align vehicle specifications and business models with local needs.

APA

Allee, A., Schroeder, J., & Sherwood, J. (2022). Powering Small-Format Electric Vehicles with Minigrids. RMI. https://rmi.org/app/uploads/dlm_uploads/2022/04/powering_small_format_electric_vehicles_with_minigrids.pdf

Chicago

Allee, Andrew, John Schroeder, and James Sherwood. Powering Small-Format Electric Vehicles with Minigrids. RMI, 2022. https://rmi.org/app/uploads/dlm_uploads/2022/04/powering_small_format_electric_vehicles_with_minigrids.pdf.

Wikipedia

{{cite report |last1=Allee |first1=Andrew |last2=Schroeder |first2=John |last3=Sherwood |first3=James |title=Powering Small-Format Electric Vehicles with Minigrids |publisher=RMI |date=April 2022 |url=https://rmi.org/app/uploads/dlm_uploads/2022/04/powering_small_format_electric_vehicles_with_minigrids.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{allee2022powering, author = {Allee, Andrew and Schroeder, John and Sherwood, James}, title = {{Powering Small-Format Electric Vehicles with Minigrids}}, institution = {RMI}, year = {2022}, month = apr, url = {https://rmi.org/app/uploads/dlm_uploads/2022/04/powering_small_format_electric_vehicles_with_minigrids.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }