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Mini-Grid Policy Developments – January 2017 | Energy Access Practitioner Network

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Mini-Grid Policy Developments – January 2017

Indonesia’s New Rural Electrification Regulation 

The Directorate General of Electricity under the Indonesian Ministry of Energy and Mineral Resources has pushed through a rural electrification regulation. This regulation provides the framework on how a private business entity can provide electricity to currently un-electrified regions through business area concessions. It also provides ways to calculate and receive electricity subsidies from the government. However, the exact requirements on how to become an appointed electricity provider is not defined within the regulation. Click here for the regulation (not in English).


Nigerian Rural Electrification Strategy and Implementation Plan (RESIP) and the establishment of the Rural Electrification Fund

The aim of the RESIP is to expand access to electricity as rapidly as possible in a cost-effective manner. Through the rural electrification strategy, government says “it aims to promote a full menu of rural electrification options–grid and off-grid (mini-grid & stand-alone) from thermal and renewable; ensure close co-ordination of rural electrification expansion with economic development objectives; encourage states, local communities and businesses to develop and contribute financially to rural electrification; and facilitate the entry of new market participants and continued development of local rural electrification (RE) ventures whose activities may include the production, installation, operation, maintenance, and distribution/sales of equipment, systems, and services related to power supply in rural areas.”

The Nigerian Government hopes to implement RESIP using an independent Rural Electrification Fund operated by a Rural Electrification Agency. Among other things, the REF would be used to develop both grid-connected and off-grid rural electrification. It is to be comprised of contributions from government, donors and others in accordance with provisions of EPSR Act of 2005.

The Fund is to be open to bids from a wide range of organizations (developers) and would be used for funding of connections to supply (grid and off-grid), but not for consumption through open competitive bids. It is also expected to provide a portion of the total funding, so other parties (distribution companies, local communities, business groups, etc.) would have to provide the rest.

The Plan, which was recently signed by President Muhammadu Buhari, is expected to be officially launched soon.