Ashden is a UK charity that promotes sustainable energy solutions by rewarding innovators and providing support to winners, including SMEs and social enterprises across the globe. The document highlights the benefits of standalone mini-grids for remote electrification, their economic advantages, and various case studies from countries like Indonesia and India, showcasing improved livelihoods and capacity-building. It concludes that while mini-grids are a significant part of the energy access solution, other methods and supportive policies are necessary for comprehensive rural electrification.

1. Ashden
Ashden is a UK charity that rewards, supports and promotes sustainable
energy and all the life-changing benefits it brings.

2. About us
• Founded in 2001
• 140 winners across the UK and developing world.
• We reward pioneers in renewable energy or energy efficiency that are
demonstrating innovation, excellence and the potential to grow.
• After winning an award we provide our winners with relevant business
and technical support, mentoring, and introductions to finance and policy
makers.
• We have a rich resource of information, films and photographs on
sustainable energy solutions on the Ashden website and used on other
websites.

3. Ashden winners
• Ashden Award winners are SMEs, social enterprises, government and
non-government programmes that are increasing the use of sustainable
energy.
• In the UK we reward organisations that are increasing energy efficiency
or renewable energy use in homes, institutions and communities.
• Ashden Award winners across Africa, Asia, and Latin America use
renewable heat and electricity, such as solar PV, biogas, micro-
hydro, biomass and efficient cookstoves, to increase energy access.
• The renewable energy that Ashden Award winners provide is at a
household, institutional, or mini-grid level.

4. The Ashden India Sustainable
Energy Collective
• In 2010 16 Indian Ashden Award-winners came together to form The
Ashden India Sustainable Energy Collective (AISEC).
• AISEC now comprises 20 successful entrepreneurs working in
renewable energy, using technologies including solar home
systems, lanterns, and mini-grids; and biomass and biogas for mini-grids
and heating.
• AISEC aims to use the collective experience of the members to make
recommendations to policy makers and financial institutions through
events, research, and policy documents.

5. Standalone mini-grids: the advantages
• Mini-grids using renewable sources can reach remote areas AND provide
reliable power for the whole community.
• They provide enough power for households and productive uses, stimulating
new businesses and increasing incomes, while also providing electricity to
community buildings such as health centres and schools.
• Mini-grids are more cost effective than extending the grid large distances and
also reduce distribution losses.
• Mini-grids can be incorporated into the national grid if extended to the area.
• Mini-grids provide local jobs for their operation and maintenance.
• The International Energy Agency, UNDP, and UNIDO project that mini and
micro grids will meet 42% of off-grid needs globally by 2030.

6. Standalone mini-grids: the challenges
• High upfront cost – of both generator and distribution network.
However:
o Compare to extending the grid: WB estimates $10,000/km for grid
extension (not including distribution system).
o Therefore a typical IBEKA system, which costs $210,000 and includes
distribution, is cheaper than extending the grid 21km
• Need for trained workforce.
o Highly trained people are needed to run a mini-grid system,
particularly to maintain the generator.
• Fixed, limited generation capacity and need to manage the demand.
• Need for community engagement and cooperation.

7. IBEKA, Indonesia
• 51 off-grid micro hydro schemes in remote villages. Average capacity 34
kW, total capacity 1.7 MW.
• Over 10,000 households are connected (average 200 per
scheme), reaching 47,000 people with power for lights, TVs, radios and
phone-charging facilities.
• Hydro provides power levels that can run electric tools, so carpentry and
metal workshops can expand their business. Jobs like tailoring and
agricultural processing can also become more productive.
• Typical cost of an off-grid scheme is between $4,000 and $8,000 per kW
installed. This capital cost is grant funded.
• User fees are collected to cover operation,
maintenance, and a community fund.

8. GIZ/Integration, Afghanistan
• Six off-grid mini-hydro schemes in operation in a remote, mountainous
region of North East Afghanistan. Average capacity 220 kW, total capacity
1.3 MW.
• 7,600 households, 110 public organisations and 645 small businesses
electrified.
• Capital costs of plants from S$3,700 to $5,300 per kW installed. Funding
provided by German Ministry for Economic Co-operation and Development.
• Local people employed to construct the plants, involving men from all ethnic
communities. In addition, long-term employment has been directly created
for 32 leaseholder and operators.
• People in electrified areas have improved
livelihoods, with 90% of households now above
subsistence level compared to only 32% in
2007.

9. Husk Power Systems, India
• Uses gasified rice husk to generate power for mini-grids in Bihar villages.
• 80 biomass-gasifier schemes in operation. Average capacity 35 kW, total
capacity 2.4 MW.
• Electricity for over 200,000 people across 300 villages and hamlets.
• A basic connection supplies two CFL lights and a phone charger and costs
US$2.20/month. Households save about US$4.40/month on kerosene for
lighting.
• Total cost of 35 kW plant is less than $1,000 per kW installed. Funding
provided by investment, government subsidy,
and sales revenue.
• Rice mills earn approx. $3,000 extra per year
by supplying a plant, and new businesses
have started including photocopying shops
and mini cinemas.

10. WBREDA, India
• Solar PV power plants generate electricity for the Sundarban Islands.
• 19 solar mini-grid stations and two biomass stations.
• Average capacity of solar power plant is 30 kW and biomass power plants
are 200 kW, total capacity 850 kW.
• 2,000 customers of which 80% are domestic, 15% are commercial and
5% are institutional.
• More than 20,000 beneficiaries.
• Typical cost of a solar plant is $5,000 per kW installed.
• Consumers pay $0.15/kW – 1.5 times more than national grid but less
than diesel.

11. Part of the solution
- but not the whole solution
• Mini-grids are good electrification option when:
o Places are remote and a long way from the existing grid.
o There is sufficient population density and hence demand.
o There is an available and reliable renewable resource such
solar, water or biomass residues.
o The community is willing to participate, and in some cases take
ownership.
o There is training capacity available to maintain plants.
o Funding is available to cover capital costs.

12. Part of the solution
- but not the whole solution
• Where other solutions work well:
o Where the extension of the national grid is viable and cost-
effective, especially when additional renewable generation capacity
can help improve and extend the grid.
o Household level renewable energy such as solar home systems
and solar lanterns in areas where population density is too low to
support a mini-grid, or where the community is not sufficiently
engaged.

13. The role of government
• Help overcome the barrier of high up-front costs of mini-grids.
• Provide exemptions from import duties on renewable energy products
including mini-grid components.
• Put policies in place for taking off-grid capacity into the grid if it expands.

14. In conclusion
• Mini grids are an excellent way of expanding energy access when they
are located correctly and well-managed, with community involvement.
• Are mini-grids the answer to rural electrification? Partly, but other
solutions such as solar home systems and solar lanterns, as well as grid
expansion, need to be deployed when appropriate and in parallel.
• Policy and financing have a key role to play in facilitating expansion of
mini-grids.