| Work Detail |
RMI has researched the transformative potential of mini-grid electricity in Nigerian agriculture, demonstrating how productive use of energy can significantly reduce electricity production costs while boosting agricultural productivity.
Nigerias 170 mini-grids (stand-alone solar and energy storage systems that serve rural utilities) run the risk of not supporting energy supply and use in tandem.
While the systems are the cheapest way to electrify many off-grid communities, they are underutilised in Nigeria because, on average, customers spend less than $2 a month on power. They simply cannot afford the equipment.
This leads to utilities cutting supply hours and not maintaining their grids as low sales render them near insolvent.
Some Nigerian mini-grids are bucking this trend, though, as their customers adopt income-generating productive uses of energy (PUEs) that raise electricity sales and boost household incomes.
Recognising that agriculture is a mainstay of Nigerias rural economies, the Energizing Agriculture Programme (EAP) saw potential in agricultural PUEs to uplift mini-grid utilisation and farmer incomes.
The Harvesting Sunshine: How Productive Uses of Mini grid Electricity Make Rarmers Richer and Energy Cheaper report unpacks the EAP deployment experience in operating 269 mills, freezers, EVs and other equipment at mini-grids across Nigeria.
The report explains the lessons learned from testing business models that deliver these machines through Nigerian equipment suppliers and service providers who act as the PUE companies.
No other cost reduction strategy has a larger effect on mini-grid economics than helping customers use increasing amounts of energy. |
