Problem

Nigeria’s Mokoloki community obtained their first rural commercial mini-grid in February 2020 through a solar hybrid partnership project with local energy companies. Four years later, Mokoloki’s success seemed to have outgrown its capacity. Since the mini-grid installation, many neighbouring communities came into the town, causing it to grow from 250 households to an estimated 400, increasing electricity demand. Electricity shortfalls have been affecting small businesses, from home ice-making businesses to bigger ones like town hospitals and pharmacies, even hindering students from studying after school. 

Alongside the unexpected rise in demand for electricity came a sharp increase in diesel fuel prices: from ₦225/litre (US$0.25/litre) in March 2020 to ₦1,050/litre (US$1.18/litre) in October 2023. The system was initially designed to rely on a blend of low-cost grid and solar electricity, with minimal diesel generator backup. The mini-grid was never connected to the national grid, meaning they now must use electricity generated from expensive diesel in times when the sun does not fully charge the batteries.

Responses

Sharing Power Initiative, an initiative by Rocky Mountain Institute (RMI), develops mini-grid projects in sub-Saharan Africa to demonstrate the impact of community-led design on project outcomes. The program was rolled out in Nigeria in February 2023 as a business model and approach that aims to promote inclusive energy governance.

Collaborating with a local developer Nayo Tropical Technology, Sharing the Power seeks to address supply challenges while ensuring an 11% stake benefits the Mokoloki community.  Representatives of the town’s citizens, including women, are appointed to a community power association with co-ownership and decision-making power, with the community and project developer becoming joint signatories to the benefit account. Several of the measures reportedly implemented were upgrading the system’s battery capacity from 190 kWh to 316 kWh, and switching from an AC-coupled to a DC-coupled system for higher efficiency, allowing increased electricity service delivery with reduced costs. Since the implementation of a community-private partnership model, the duration of power outages has reportedly decreased from five hours to less than one hour daily, reducing reliance on diesel generators.

Find out more: Rocky Mountain Institute