Type 2 present the biggest opportunity for an innovative entrepreneur.I
Wacoiro
11

Thanks for your comment Wacoiro. As I mentioned to Subodh, I don’t know whether Type 3 or Type 2 will grow faster — I suspect there will be room for both. My sense is that the more you go up to Type 2 and 1 the more explicit your need for rural electrification cross-subsidy is if you are to add rural household connections anyway. Whether you can expect to receive this goes back to the license to operate. The advantage of Type 3 grids is that, like household solar systems, they can potentially fill the gaps and are less reliant on a well-functioning subsidy and governance system. Some commentors on this blog have said (in private!) that I’m dreaming to expect Type 2 auctions/concessions to work, that increased governance is the kiss of death, and completely unregulated Type 3 grids are the only way the sector will move. To be honest I have some sympathies with this argument. However, I feel like you can only go so far with mini-grids either “under the radar” or a “wild west” of sole source deals — especially at larger sites and if firms expect a more predictable investment and support climate — hence the proposal in this blog.

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