The business model plays a crucial role in the wider expansion of mini-grid deployment, as an option for electrification in rural areas.
This interview was originally published in African Power & Energy Elites 2021.
This was the challenge facing the Ibadan Electricity Distribution Company (IBEDC) and the Abuja based power solutions developer Nayo Tropical Technology when planning improvements to the electricity supply in Mokoloki, a rural community in Ogun State, about three hours by road north of Lagos.
Historically, Mokoloki was connected to Nigeria’s bulk electricity grid but the electricity supply was intermittent and unreliable, often limited to three hours or less of power per day. Consequently, businesses and other community members were forced to run expensive, noisy and polluting diesel and petrol gensets to supplement the grid supply.
This was hindering the day-to-day lives in the community and slowed economic growth due to the high cost of power. At the same time, the distribution company was experiencing high technical and commercial losses, up to 70%, in serving the community, resulting in a real loss for every kilowatt-hour supplied in Mokoloki.