A mini-grid is a set of small-scale electricity generators which are interconnected to a distribution network that supplies electricity to a small, localized group of customers. It usually operates independently from the national transmission grid. Renewable energy mini-grids, powered by solar, wind or hydro, are emerging as the trend of energy access, especially in rural areas, where they have become a viable option for providing reliable and high-quality electricity to rural populations and businesses.
Today, many Distribution Licensees are working with independent energy firms and NGOs on complementary off-grid supply solutions for mixed energy solutions. Such projects seek to develop business models to prioritize the Licensee’s customer clusters, identify, develop, and evaluate business models to improve service delivery to these customer clusters using DERs, identify sites for pilot projects, design and cost of the pilot projects, and estimate the economic, financial, and development impacts of the project on the Licensee and its customers. NERC’s Regulation for Mini-Grids 2016 is the applicable regulatory instrument for mini-grids.
