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

Author

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  • Théo Chamarande

    (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UNC - Université de la Nouvelle-Calédonie - UG - Université de Guyane - UA - Université des Antilles - UM - Université de Montpellier)

  • Sandrine Mathy

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Benoit Hingray

    (IGE - Institut des Géosciences de l’Environnement - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Fédération OSUG - Observatoire des Sciences de l'Univers de Grenoble - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

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

  • Théo Chamarande & Sandrine Mathy & Benoit Hingray, 2025. "Designing policies to reduce the carbon footprint of mini-grids in Africa," Post-Print hal-05125326, HAL.
    • Handle: RePEc:hal:journl:hal-05125326
    DOI: 10.1016/j.apenergy.2025.126296
    Note: View the original document on HAL open archive server: https://hal.science/hal-05125326v1
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    References listed on IDEAS

    as
    1. Sven Van Kerckhoven & Emilie Bécault & Axel Marx, 2015. "Ecological tax reform initiatives in Africa," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 9(1), pages 58-76.
    2. Duccio Baldi & Magda Moner-Girona & Elena Fumagalli & Fernando Fahl, 2022. "Planning sustainable electricity solutions for refugee settlements in sub-Saharan Africa," Nature Energy, Nature, vol. 7(4), pages 369-379, April.
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