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Report | 2020

Nigeria’s First Commercial Undergrid Minigrid Project

By RMIIbadan Electricity Distribution CompanyNayo Tropical Technology, LTD
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Project Resources

Nigeria’s Commercial Undergrid Minigrid Anniversary Report

In February 2020, Nigeria’s first commercial undergrid minigrid came online in Mokoloki, Ogun State, Nigeria. Despite a tumultuous year that included the global COVID-19 pandemic, the undergrid minigrid project remained financially sound. New customers have been acquired steadily, individual demand for electricity is growing, and the minigrid is attracting new businesses to Mokoloki.

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Community Resilience through Nigeria’s First Undergrid Minigrid

A new undergrid minigrid pilot in Mokoloki, which provides stable electricity through a new, sustainable economic and regulatory model, shows how utilities, private developers, and communities can work together for mutual benefit.

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Nigeria’s First Commercial Undergrid Minigrid Project Successfully Powers the Mokoloki Community

The Mokoloki project demonstrates a financially viable business model that could provide electricity access to millions living in underserved rural communities throughout the country.

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Nigeria’s First Commercial Undergrid Minigrid Project Summary

The solar hybrid project in Mokoloki community is Nigeria’s first rural commercial undergrid minigrid, coming online in February 2020. Through an innovative partnership between Ibadan Electricity Distribution Company (IBEDC), Nayo Tropical Technology (Nayo Tech), and Mokoloki community—with advisory support from Rocky Mountain Institute (RMI)—this project demonstrates a path to collaboration.

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The solar hybrid project in Mokoloki community is Nigeria’s first rural commercial undergrid minigrid, which came online in February 2020. Through an innovative partnership between Ibadan Electricity Distribution Company (IBEDC), Nayo Tropical Technology (Nayo Tech), and Mokoloki community—with advisory support from Rocky Mountain Institute (RMI)—this project demonstrates a path to collaboration. Early evidence indicates the project will improve electricity service, support community development, and reduce utility losses.

While the Mokoloki minigrid is an important proof-of-concept that the undergrid model can be achieved, it represents more than that. It also proves that the undergrid model is technically and economically feasible.

Video: Nigeria’s First Commercial Undergrid Minigrid

Video: Nigeria’s First Commercial Undergrid Minigrid

Rocky Mountain Institute, Ibadan Electricity Electric Distribution Company, and Nayo Topical Technology, with support from the Nigerian Rural Electrification Agency (REA), joined forces to accelerate the commercial deployment of undergrid minigrid technology in the Nigerian energy sector. The Mokoloki community project demonstrates a financially viable business model that could provide electricity access to millions living in underserved rural communities throughout the country.

Mokoloki’s minigrid:

  • Creates cost-savings for the utility, which previously registered aggregate technical and commercial losses of up to 70 percent in Mokoloki;
  • Opened a new revenue stream and minigrid market segment for the developer;
  • Avoided about 15,000 kg of CO2 emissions its first three months of operation; and
  • Reduced customer electricity costs by ₦20/kWh ($0.06/kWh)

Project participants believe that this model can be replicated and scaled to help serve millions of Nigerians living in underserved communities.

Resources

Under the Grid

Improving the Economics and Reliability of Rural Electricity Service with Undergrid Minigrids

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Electrifying The Underserved

Collaborative Business Models for Developing Minigrids Under the Grid

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Letting Communities Lead

How Community-Led Minigrid Projects Can Strengthen Rural Electrification in Africa

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Four Simple and Collaborative Business Models

How Four Simple and Collaborative Business Models Can Unlock Nigeria’s $1 Billion Undergrid Minigrid Market

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Reliable and Affordable Electricity for Nigeria

Growing the Minigrid Market

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Undergrid Minigrids to Drive Development

Using Undergrid Minigrids to Drive Development in Thousands of Sub-Saharan African Communities

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Growing the Minigrid Market in Sub-Saharan Africa

Minigrids can be the least-cost option for electricity access for millions of people who lack access to reliable electricity, however market penetration remains low.

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