ABSTRACT

Chapter 10 considers small-scale rural mini-grids in developing countries as a solution for communities that are sparsely populated and located far from grid connections. How are microgrids successfully deployed in developing countries? This chapter highlights the viability of solar PV mini-grids for rural electrification in Ghana by analyzing the regulatory and fiscal situation. It offers recommendations for a supportive renewable energy and mini-grid regulatory framework. To these ends, this chapter uses Ghana as a case study that examines the mini-grids deployed by the government and private investors and assesses the differences in tariff structures, customer services, and reliability. The findings indicated that expenditures on electricity using mini-grids were lower compared to the alternative of using kerosene and dry cell batteries. It was also determined that solar mini-grids developed by private businesses offer viable solutions for rural communities. Examples of the socioeconomic benefits of providing solar-generated electricity to rural communities include savings on fuel, improvements in the welfare of women, and educational benefits such as increased hours of learning.