ENABLING INTERCONNECTED MINI-GRIDS By Alex Obiechina President, AMDA Nigeria & CEO, ACOB Lighting Technologies

EXECUTIVE SUMMARY By regulations and definition, interconnected mini-grids could be deployed to either supplement or supplant already existing grid power with the agreement of all parties involved. According to industry sources, potential sites for interconnected mini-grids are in their thousands across Nigeria. Whilst a lot has been said about interconnected mini-grids, none has been deployed so far. Currently, MOUs and sustainable business models are being worked out across board to ensure deployment going forward.

ENABLING INTERCONNECTED MINI-GRIDS In Nigeria, the NERC Mini-Grid Regulations clearly delineates what constitutes an interconnected mini-grid Involves the signing of a tripartite agreement between connected community, a mini-grid developer and a distribution licensee.* Tripartite agreement to be approved by NERC, the sector regulator. Deployed in an underserved area with an existing but poorly supplied or non-functional distribution system. Source: usaid.gov * The Nigeria Mini Grid Regulations 2016 4TH NIGERIA ENERGY FORUM

ENABLING INTERCONNECTED MINI-GRIDS Interconnected mini-grids portend ‘low-hanging fruits’ for the sector and presents an opportunity to provide power to more people at lower CAPEX Opportunity to leverage on any available grid infrastructure in good working conditions Potential sites are brimming with lots of economic activities Customers understand the importance of reliable and efficient power as they already have alternatives to augment the current state of electricity Opportunity to partner and reach a larger customer base for both DisCOs and developers And of course, a contribution to the bottomline – REVENUE! 4TH NIGERIA ENERGY FORUM

As the sector continues to grow and seek opportunities to achieve scale, a few key next steps to unlocking the potential that interconnected mini-grids have, will be necessary Renewable Energy Companies should continue to seek best possible options for collaboration with DisCOs and vice versa to deploy interconnected grids to underserved areas. Regulatory bodies and government agencies should continue to provide the enabling environment for interconnected mini-grid deployment. Would-be financiers should look to support and fund interconnected mini-grid projects as they portend a huge investment opportunity.

THANK YOU