Search Climate Insights Directory

The 'Sharing the Power' project, supported by the Dutch Postcode Lottery and implemented by RMI and Nayo Tropical Technology Ltd., has upgraded a solar minigrid in Mokoloki, Ogun State, Nigeria. The project addresses capacity shortfalls caused by a 60 percent population increase and rising diesel costs by increasing battery capacity from 190 kWh to 316 kWh and switching to a DC coupled system. Central to the model is 'inclusive energy governance,' where the Mokoloki community holds an 11 percent stake in the project, granting them voting rights through a Community Power Association (CPA) and 11 percent of net revenues to fund communal projects such as roads, schools, and health centers.

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 policy brief examines a pilot project in Mokoloki, Nigeria, where a privately owned solar minigrid shares existing distribution infrastructure with a utility to provide reliable power to 'undergrid' customers. It proposes that India, which faces similar challenges with high technical and commercial losses (up to 40%) and unreliable rural supply, could adopt this model to enhance last-mile service and financial viability for distribution companies.

The Mokoloki project demonstrates a new 'undergrid' business model where a private developer, Nayo Tropical Technologies, provides reliable electricity to a community within the territory of the Ibadan Electricity Distribution Company (IBEDC). The pilot has achieved 99.9 percent reliability, reduced energy costs for customers by ₦20/kWh, and decreased utility losses in the area by over 90 percent. The project supports local healthcare through 24/7 power for clinics and stimulates economic growth by powering small businesses and attracting new enterprises.

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.