Complying with the 7th Sustainable Development Goal—clean, reliable, and affordable energy for all—will require a relevant financial effort from now until 2030. In addition, minigrids have revealed as a quick plug-and-play solution to accelerate access. However, despite their enormous potential (more than 100,000 minigrids per year), barely a hundred of them are being deployed nowadays. One of the major reasons for this slower pace is the reduced survivability of their business model during the initial years due to a staggered demand, too high or too low tariffs, lack of public support, or elevated capital costs. This project will develop a simple and replicable financial model to analyze the identified levers that intervene in the survivability of minigrids and will explore coordination mechanisms for public-private collaboration.
Germán Enríquez de la Fuente
