The U.N. Sustainable Development Goal 7 encourages universal access to clean, reliable, and affordable energy in 2030. Yet, more than 700 million people lack access to electricity today, and many more suffer of very unreliable access. Grid extension, particularly distribution, is rather slow due to capital needs, financial risks and broken traditional power utilities. Within this context, microgrids are seen as the second-best solution because require less capital and less time to be put into operation. However, microgrids still face issues to be economically viable in the short and medium term, and must likely adapt to a changing business environment in the long term when the main grid will arrive. This TFM will explore, analyze, and discuss different financial structures and business models for microgrids to survive.
Alejandro Valcarce Barbosa
