STATE OF THE GLOBAL MINI-GRIDS MARKET 2024

The global mini-grid market has seen significant growth, with installations in 2024 projected to be six times higher than in 2018. There is a clear transition from diesel to solar PV, with solar's share of installed capacity rising from 14% in 2018 to 59% in 2024. While funding has increased—with total committed funding for ongoing programmes exceeding USD 3.1 billion—a significant financing gap remains, particularly in sub-Saharan Africa. The sector is shifting toward Productive Use of Energy (PUE) business models and innovative technologies like mesh grids and lithium-ion batteries to improve financial viability. However, the report notes that regulatory implementation often lags behind formal policy, and there is a critical need for standardized reporting and better data sharing to attract private investment.

• Mini-grid installations have grown substantially, with 2024 projections indicating they are "over six times higher compared with 2018".
• The energy mix of mini-grids is shifting rapidly toward renewables; the share of solar PV systems increased from 14% in 2018 to 59% in 2024, while diesel capacity fell from 42% to 29% in the same period.
• Total committed funding for ongoing mini-grid programmes exceeds USD 3.1 billion across 377 programmes, with the majority directed toward African countries.
• Private investment in the sector grew sixfold in seven years, rising from less than USD 100 million in 2015 to nearly USD 600 million in 2022.
• The levelised cost of electricity (LCOE) for best-in-class mini-grids decreased by approximately 31%, falling from USD 0.55 per kWh in 2018 to USD 0.38 per kWh in 2021.
• Average capital expenditure (capex) per mini-grid connection dropped 43% between 2020 and 2024, from USD 1,250 to USD 707.
• Operational expenditure (opex) costs per kW have declined from approximately USD 250/kW in 2019 to USD 80/kW by 2024, partly due to remote monitoring technologies that can reduce O&M expenses by at least 15%.
• Lithium-ion batteries are increasingly preferred over lead-acid due to lower costs (USD 123/kWh vs USD 200-220/kWh in 2021) and better performance, with prices potentially reaching USD 75/kWh by 2030.
• Business models are evolving from simple energy supply to 'business acceleration' and 'supplier-offtaker' models that proactively foster Productive Use of Energy (PUE) to increase demand and profitability.
• Mesh grids are emerging as a cost-effective solution for low-density areas, with distribution costs approximately 75% lower than traditional mini-grids.
• There is a significant gap between formal regulatory frameworks and their actual implementation, as seen in Tanzania where a high RISE score was undermined by a sudden ministerial directive on tariffs.
• The sector is exploring 'undergrid' mini-grids to provide reliable power in areas already connected to a main grid that suffers from poor service quality.
• Results-based financing (RBF) remains a primary funding modality, but developers face 'stop-and-go' issues due to strict timelines, leading to the creation of cross-funder instruments like the Universal Energy Facility (UEF).
• Local currency financing is critically limited; only a few funders, such as CrossBoundary Access and UNDP, provide it for the majority of their programmes, leaving many projects exposed to foreign exchange risk.

APA

Adamopoulou, E., Sala, I., Pilco, A., Lewis, C., & Fluehr, K. (2024). STATE OF THE GLOBAL MINI-GRIDS MARKET 2024. Sustainable Energy for All. https://www.seforall.org/system/files/2024-08/SOTM%20Report%202024_EN_vFc.pdf

Chicago

Adamopoulou, Elena, Iro Sala, Adrian Pilco, Christopher Lewis, and Kathryn Fluehr. STATE OF THE GLOBAL MINI-GRIDS MARKET 2024. Sustainable Energy for All, 2024. https://www.seforall.org/system/files/2024-08/SOTM%20Report%202024_EN_vFc.pdf.

Wikipedia

{{cite report |last1=Adamopoulou |first1=Elena |last2=Sala |first2=Iro |last3=Pilco |first3=Adrian |last4=Lewis |first4=Christopher |last5=Fluehr |first5=Kathryn |title=STATE OF THE GLOBAL MINI-GRIDS MARKET 2024 |publisher=Sustainable Energy for All |date=2024 |url=https://www.seforall.org/system/files/2024-08/SOTM%20Report%202024_EN_vFc.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{adamopoulou2024state, author = {Adamopoulou, Elena and Sala, Iro and Pilco, Adrian and Lewis, Christopher and Fluehr, Kathryn}, title = {{STATE OF THE GLOBAL MINI-GRIDS MARKET 2024}}, institution = {Sustainable Energy for All}, year = {2024}, url = {https://www.seforall.org/system/files/2024-08/SOTM%20Report%202024_EN_vFc.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }