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Designing policies to reduce the carbon footprint of mini-grids in Africa

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  • Chamarande, Théo
  • Mathy, Sandrine
  • Hingray, Benoit

Abstract

Mini-grids with a low carbon footprint are a promising solution for providing electricity in rural areas, while being compatible with the objectives of the Paris Agreement. Public policies are needed to encourage their development and their design should consider the different point of view from each stakeholder involved in mini-grid projects (State, developer, users). We propose a multi-criteria approach to evaluate a set of policies to limit the carbon footprint of mini-grids. Our method is based on the simulation of fictitious mini-grids and on the calculation of four indicators: the mitigation cost, the policy cost, the average levelized cost of energy (LCOE) at the national level, and the disparity of individual mini-grid LCOE within the country. We applied the methodology to Senegal, Madagascar, Kenya and Nigeria chosen for the diversity in solar resource and fuel price. Our results advocate for the combination of fuel tax and subsidy on solar panels and batteries to further reduce the carbon footprint of mini-grids. Using fuel tax revenues to equalize the LCOE of mini-grids within a country allows a cost-efficient reduction of the carbon footprint while reducing the cost disparities between mini-grid projects.

Suggested Citation

  • Chamarande, Théo & Mathy, Sandrine & Hingray, Benoit, 2025. "Designing policies to reduce the carbon footprint of mini-grids in Africa," Applied Energy, Elsevier, vol. 396(C).
    • Handle: RePEc:eee:appene:v:396:y:2025:i:c:s0306261925010268
    DOI: 10.1016/j.apenergy.2025.126296
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