Who shall inherit the mini grids? Examining ownership and business models for PV Hybrid Mini grids

In the next 20 years a large proportion of new energy access is expected to come from distributed mini-grids, many of which will be powered using renewable energy. PV-Diesel hybrid systems are an increasingly popular solution to reduce fuel costs while maintaining a firm, dispatch-able energy supply. One frequently cited barrier to the large scale adoption of such systems has been the lack of business models that are both effective and sustainable for long term service provision. This paper summarises the different ownership and business models demonstrated in the published literature – specifically Utility, Private Sector led, Community run and Hybrid combinations. The advantages and disadvantages are discussed and examples of application from case studies are described. The paper concludes by discussing why ownership and business models present a barrier for this technology and what can be done to address this issue.