The mini grid component aims to support the development of private sector mini grids in unserved areas. The Component targets are to electrify 300,000 households and 30,000 local enterprises through mini grids. The specific objectives of this component are to:
i) provide clean, safe, and affordable electricity to communities that are currently not connected to the national electricity grid;
ii) increase business productivity by replacing generators, lanterns and candles with reliable electricity;
iii) improve community security through street lighting.
The funds available for the mini grid component are US$150million. The Component consists of two funding windows:
i) A minimum subsidy tender to electrify selected communities that have high economic growth potential. The grant amount will be determined competitively through the tender.
ii) A performance-based grant program for the development of mini grids on a spontaneous basis (developers may use to electrify the communities of their choice). The grant amount is set at US$350 per connection.
