Africa: Interconnected mini-grids as an energy crisis game-changer

A new RMI report says that operational interconnected mini-grids (IMGs) projects across Africa are already demonstrating tangible results

The RMI report Interconnected Minigrids: From Pilots to Powerhouses says this massive energy access problem is underpinned by the crisis at state-owned utilities that are struggling with

• ageing infrastructure,
• limited generation capacity,
• mounting debt and
• unsustainable business models. 

The report notes that as demand continues to rise, the gap between electricity supply and consumption is widening, threatening economic growth, industrialisation and basic service delivery.

Against this backdrop, interconnected mini-grids (IMGs) are gaining momentum as a scalable solution capable of bridging the divide between national grids and off-grid systems. 

Unlocking energy access, investment through mini-grids

By combining decentralised renewable generation and battery storage with existing grid infrastructure, IMGs improve reliability for urban, peri-urban and rural communities while unlocking private sector investment into weak distribution networks.

The report highlights that unlike isolated mini-grids, IMGs are linked to the main grid and can exchange power in both directions. 

“This hybrid model allows electricity to be generated closer to consumers, reducing losses and improving service continuity at lower cost than diesel-based alternatives. 

“Developers benefit from higher energy demand and stronger revenues, consumers gain improved reliability and affordability, while utilities attract private capital to reinforce overstretched networks – a ‘win-win-win’ outcome for all stakeholders.”

Case studies show early success with mini-grids in Africa

The report says that operational IMG projects across Africa are already demonstrating tangible results. 

In Nigeria, for example, four interconnected mini-grids totalling 3MW of solar capacity and 3MWh of energy storage now serve more than 13,000 connections. 

Electricity availability has improved from fewer than three hours per day to around 15 hours, while metered connections have increased by 62%.

In the DRC, a 1.3MW/2.3MWh IMG developed by Nuru in Goma has cut diesel consumption by 96% since interconnection. 

The project supplies more than 2,700 customers and supports critical water and ICT infrastructure serving around 400,000 people, including displaced communities. In Zimbabwe, the Hunyani 1.8 MW/1.3 MWh IMG project is expected to electrify 6,000 households and businesses.

These projects highlight the ability of IMGs to stabilise electricity supply, stimulate local economic activity and displace expensive fossil fuels in both fragile and growth-oriented markets, the report notes.

Strong demand but weak grids

Across Africa, nearly 800 million people are technically connected to national grids, yet more than half endure chronic outages and insufficient power. 

“Africa’s energy challenge remains immense. Nearly 1.4 billion people – almost 90% of the continent’s entire population – are either in the dark (600 million) or suffer from unreliable power on a daily basis (800 million),” says RMI.

In the absence of reliable public supply, households and businesses are forced to rely on petrol and diesel generators, eroding competitiveness and stunting industrial development.

Transmission and distribution has emerged as a critical bottleneck. While renewable generation is expanding rapidly, grid infrastructure investment continues to lag, restricting the delivery of quality electricity to end-users.

Distributed energy resources (DERs), particularly solar photovoltaics, are widely recognised as a cornerstone of Africa’s power transition. Around 75MW of isolated solar mini-grids have been deployed across the continent, but the pace of roll-out remains too slow to close the access gap on its own.

IMGs complement these standalone systems by leveraging existing grid assets while accelerating the use of clean, local generation. Typically deployed in underserved but economically active areas, IMGs tend to achieve higher energy consumption and stronger commercial performance than isolated mini-grids in remote greenfield locations.

Countries in Africa primed for scale-up

Assessments conducted across Zambia, Madagascar, Ethiopia and the Comoros indicate strong potential for IMG deployment where several conditions align. 

These include weak and overloaded transmission networks, concentrated but underserved demand centres, supportive regulatory frameworks, collaborative utilities and sufficient private sector appetite.

The Comoros, where grid access is relatively high but reliability remains poor, provides a clear example of IMG suitability. 

Studies there have identified IMGs as an effective way to improve service quality, increase the share of renewable electricity and reduce dependence on imported fossil fuels, while strengthening the financial position of the national utility.

AMP positions interconnected mini-grids for growth

The Africa Minigrids Program (AMP), led by the UN Development Programme and supported by the Global Environment Facility, African Development Bank and Rocky Mountain Institute, is now positioning IMGs as a critical part of Africa’s electrification strategy.

Operating across 21 African countries, AMP is designed to improve the financial viability of renewable mini-grids and crowd in large-scale commercial investment through policy reform, technical assistance, digital tools and de-risking mechanisms. Its methodology draws on the Derisking Renewable Energy Investment (DREI) framework, which identifies national-level barriers to private participation and deploys targeted instruments to address them.

IMG pilots under AMP are expected to demonstrate bankability, reduce early-stage risk and support the development of standardised business models that can be scaled through competitive procurement.

A structured pathway to scale

The report outlines a roadmap for IMG deployment, beginning with detailed market assessments to identify weak grid areas with strong demand and supportive regulatory environments. Business models must then be adapted to local conditions, aligned with existing regulations and backed by early-stage concessional finance to mitigate risk.

Once pilot projects prove viability, lessons should be institutionalised through policy updates and technical guidelines before launching second-wave projects at scale. 

Mature IMG markets can be rolled out through competitive bidding as public subsidies are gradually reduced and private capital deepens.

Cover photo:  The 990kW solar hybrid mini-grid in the Lambata community of Niger State. Source: EU in Nigeria/X