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National Electrification Forum: Mini-grid action learning event February 12 th , 2020 Suman Sureshbabu [email protected]

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Page 1: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

National Electrification Forum: Mini-grid action learning event

February 12th, 2020 Suman [email protected]

Page 2: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

To End Poverty, We Must End Energy Poverty

HOUSEHOLDCONSUMPTIONNATIONAL CONSUMPTION

World Bank, 2018

Page 3: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 4: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 5: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 6: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 7: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 8: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids:Connecting Rural Communities

Page 9: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman
Page 10: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman
Page 11: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Smart Power India Has Developed Best-in-Class Mini-Grid Evidence & Analytics

Page 12: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Tata Power & The Rockefeller Foundation Launch Breakthrough EnterpriseTo Power 25 million

Page 13: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

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The Innovation Lab field tests 8 innovations across more than 70 sites in rural Africa to improve the mini-grid business model

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Financing programs for energy-efficient productive use

appliances

Assessing the price sensitivity of rural customers

Competing with the arrival of the main grid

Providing internet services alongside electricity

Deploying larger, denser grids in anticipation of customer

demand

Testing smart meter technologies

Negotiating lower equipment price through bulk

procurement

Testing smart inverters and other modular technology

1 432

5 6 7 8

Page 14: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Mini Grids Are Preferred by Households and Businesses

Rural Electrification in India: Customer Behaviour and Demand, Feb 2019

Page 15: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman
Page 16: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

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Mini-grid innovation has the potential to reduce the amount of subsidy needed by reducing the capex per connection and increasing Average Revenue per User (ARPU)

$-

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

$- $200 $400 $600 $800 $1,000 $1,200

AR

PU (

$/m

onth

)

Capex per connection ($)

Lab's Impact on ARPU and Capex per Connection, by Prototype

Appliance Financing:+$3 / month

Appliance Financing PU:+$7 / month

Bulk Procurement: -$200 / connection

Internet:+$0.50 / month

Metering:-$25 / connection

Modular Grids:+$1 / month and -$100 / connection

Tariff Reduction:+$1 / month

Mini-grid todayGrid Densification:-$175 / connection

Future mini-grid

Not financeableFinanceable

Page 17: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

Dramatic Cost Reductions Benefit Mini-Grids

Freeing Energy Project

Page 18: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

The Product Development Cycle ofMini-Grids is Accelerating

Page 19: National Electrification Forum: Mini-grid action learning event · 2020. 2. 13. · National Electrification Forum: Mini-grid action learning event . February 12. th, 2020 . Suman

AGRICULTURE-ENERGY NEXUS