1. Developing Reliable and Cost-Effective Grids
Chibueze Ekeh
Managing Consultant
April 2019

2. Change in Philosophy is Important
Old Philosophy (external focus)
New Philosophy (internal focus)

3. Democratizing the Nigerian Power Distribution Landscape
Embedded Generation
Mini-grids
SHS
‘Traffic-light’ decision approach
Discos must:
Play to strength
Seek partnerships
Suitable opportunities for Discos
Reliability over access
Embedded Generation (1MW – 20MW)
Suitable opportunities for Others
Interconnected Mini-grids (100kW – 1MW)
Isolated Mini-grids (<100kW)
Solar Home Systems (sparse population)
For reliable & cost-effective grids, Discos must:
Rank & prioritize feeders
Enumerate all communities in franchise area
Source: EU Energy Initiative Partnership Dialogue Facility (2014). Minigrid Policy Toolkit

4. Rank & Prioritize Feeders Based on Investment Analyses…
DEMAND
Simple investment analysis methods:
Discounted Cash flow
Discounted Payback Period
Some feeders overlap boundaries
Most feeders are in underserved communities
High
Low
In Discos’ Expansion Plans?
Island with Stable Grid Supply?
Island with Embedded Generation?
In Discos’ Expansion Plans?
Interconnected Mini-Grids?
Low
LOSSES
High
NOT in Discos’ Expansion Plans?
Interconnected Mini-grid?
Isolated Mini-Grids?
Solar Home Systems?
In Discos’ Expansion Plans?
Interconnected Mini-Grids?

5. …then Associate Feeders with Communities
For each 33kV/11kV feeder:
For communities connected to grid
Where are these communities? How many?
How is performance? power supply? Collection?
What supply augmentation partnerships are feasible?
Embedded Generation?
Interconnected Mini-grid?
Which financial arrangements? Fixed Fee? Per-unit Fee? Profit-sharing?
Is community within the 5-year Distribution Network Expansion Plan?
For communities NOT connected
What is the number of households per community?
Is community within the 5-years Distribution Network Expansion Plan plan?
Can partners be invited to tender for different LOTS?
Community D
Community C
Community B
Feeder X
Community A
Source: PowerGen Renewable Energy

6. Key Factors for Achieving Reliable and Cost-Effective Grids
Minimize the cost of supplying electricity
Make it affordable for the poor at the same time (are all customers worth the stress for Discos?)
Minimize technical and commercial power system losses (especially due to meter tampering)
Achieve near-zero collection loss (through smart metering)
Maximum collection of electricity bills
Aim to achieve high collection rates (98% - 100%)
What can we learn from customer engagement approach adopted by Mini-grid developers?
Increasing tariffs
First target large- and medium-sized consumers
Improve service quality
Augment national grid supply