Solar mini grids have the potential to meet the electricity needs of nearly half a billion people in unpowered or underserved areas of the world and become a cost-effective solution to close the energy access gap by 2030.
However, governments and industry have to work together to realise the full potential by identifying mini grid opportunities, driving costs down and overcoming financing barriers, the World Bank said in its latest report.
To power 490 million people by 2030 will require the construction of more than 217,000 mini grids at a cumulative cost of $127 billion.
However, at current pace, only 44,800 new mini grids serving 80 million people will be built by the end of this decade at a total cost of $37bn, the Washington-based lender said.
The World Bank has been scaling up its support for mini grids to help countries to develop comprehensive electrification programmes. Modern solar mini grids now provide enough electricity for electric appliances such as refrigerators, welders, milling machines or e-vehicles.
However, about 733 million people — mostly in Sub-Saharan Africa — still lack access to electricity.
The pace of electrification has slowed down in recent years, on the back of Covid-19 pandemic-driven headwinds and the difficulties in reaching vulnerable populations in remote areas.
At the current rate of progress, 670 million people will remain without electricity by 2030, the World Bank estimates.
“Now more than ever, solar mini grids are a core solution for closing the energy access gap,” Riccardo Puliti, infrastructure vice president at the World Bank, said.
“With $1.4bn across 30 countries, our commitments to mini grids represent about one-quarter of total investment in mini grids by the public and private sector in our client countries.”
Africa is facing a widening electricity access gap, hampered by the lack of government resources and financing for private sector projects. Half of the people on the continent have no power.
West Africa, in particular, has one of the lowest rates of electricity access in the world. Only about 42 per cent of the total population and 8 per cent of rural residents have access to electricity, World Bank data shows.
“To connect half a billion people by 2030, several actions are needed, such as incorporating mini grids into national electrification plans and devising financing solutions adapted to mini grid projects’ risk profiles,” Mr Puliti said.
Solar mini grids have become the least-expensive option to bring electricity to off-grid towns and cities or those experiencing regular power cuts. The cost of electricity generated by solar mini grids has gone down to $0.38 per kilowatt hour currently, from $0.55 per kWh in 2018.
However, the cost of electricity from solar hybrid mini grids would need to go down further to $0.20 per kWh by 2030 to give people access to electricity for just $10 per month, the World Bank said.
The deployment of solar mini grids has picked up pace to about 150 per country per year from about 50 per country annually in 2018. However, the pace of deployment would need to increase to 2,000 mini grids per country per year to bridge the power access gap, the World Bank said.
Accelerating the deployment of solar mini grids will also assist in cutting carbon emissions. The World Bank estimates that connecting 490 million people to these grids would help in eliminating about 1.2 billion tonnes of carbon dioxide emissions.
Fringe@Four Line-up
October 1 - Phil Nichol (stand-up comedy)
October 29 - Mandy Knight (stand-up comedy)
November 5 - Sinatra Raw (Fringe theatre)
November 8 - Imah Dumagay & Sundeep Fernandes (stand-up comedy)
November 13 - Gordon Southern (stand-up comedy)
November 22 - In Loyal Company (Fringe theatre)
November 29 - Peter Searles (comedy / theatre)
December 5 - Sinatra’s Christmas Under The Stars (music / dinner show)
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RESULTS
6.30pm: Al Maktoum Challenge Round-1 Group 1 (PA) Dh119,373 (Dirt) 1,600m
Winner: Brraq, Adrie de Vries (jockey), Jean-Claude Pecout (trainer)
7.05pm: Handicap (TB) Dh102,500 (D) 1,200m
Winner: Taamol, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Handicap (TB) Dh105,000 (Turf) 1,800m
Winner: Eqtiraan, Connor Beasley, Ali Rashid Al Raihe.
8.15pm: UAE 1000 Guineas Trial (TB) Dh183,650 (D) 1,400m
Winner: Soft Whisper, Pat Cosgrave, Saeed bin Suroor.
9.50pm: Handicap (TB) Dh105,000 (D) 1,600m
Winner: Hypothetical, Mickael Barzalona, Salem bin Ghadayer.
9.25pm: Handicap (TB) Dh95,000 (T) 1,000m
Winner: Etisalat, Sando Paiva, Ali Rashid Al Raihe
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Background: Chemical Weapons
