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However, sustainable development is stagnating in those regions without electricity access.

The same was observed in Uganda, where GDP increased by 2.6% with the commissioning of a 250 MW hydropower plant. Senegal’s GDP increased by 1.7% when a 70 MW power plant was put into operation. Through the application of the SRMP, it is revealed that the mini-grid is exposed to a moderate level of risk, mainly due to a lack of education and a replacement process.ĭespite the fact that energy is undisputedly vital to generate economic growth and ensure a common social well-being, more than 780 million people worldwide still live without access to electricity. The approach is illustrated using Namibia’s largest mini-grid in Tsumkwe as an example. The following chapter therefore aims to highlight the risk landscape for the deployment of mini-grid systems in order to assist investors in sustainably integrating mini-grid systems. This discourages investors and thus prevents the electrification rate to increase. However, such systems are fraught with risk if various potential pitfalls are not considered upfront. Therefore, mini-grid systems represent a promising alternative to ensure electrification even at long distances from the grid, backed by the fact that these systems are becoming cheaper with the advancement of integrated technologies. It is often not economically viable to connect these remote communities to the main grid. Although it is now well known that access to electrification is a crucial prerequisite for ensuring sustainable development, rural households in sub-Saharan Africa in particular remain unelectrified.

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