Solar: Affordable Power in Nigeria and Africa:Case Study -Mini-Grid- Green Village Electricity(GVE)-Part 7
Three Nigerian undergraduates of Federal University of Technology Owerri (FUTO) founded GVE to increase energy access to under-served communities. They discovered that rural dwellers were willing to pay for electricity and their Mini-Grid could cut energy expenditure in rural communities by 70%.
GVE’s pilot project was a 6kW Mini-Grid in Egbeke, Rivers State in 2013.
GVE sells power to communities through vendor networks who purchase electricity in bulk and resell it to consumers.
Residential consumers pay a one-time connection fees of N6,000 ($17) which covers installation of a prepaid meter and load limiter.
Low-cost long-term funding from development organizations and donor agencies enabled the company remain profitable.
Today GVE is Nigeria’s largest solar Mini-Grid solutions provider with an installed capacity of 500kW powering 5,200 households in nine rural communities across six states.
For a successful Mini-Grid project it is very important to choose a location where there is a real need i.e. no national grid connection or unserved by the grid, and one where the community is willing to pay for the service. Community engagement is crucial to get their support and to agree upon a tariff they can pay.
Next Up is our final piece in this series on Financing
Thank you for reading,
Nero
