In Nigeria, thousands of communities face unreliable or nonexistent electricity from distribution companies (DisCos). However, undergrid mini grids, and self-contained electricity systems up to 1 megawatt in size, present a significant opportunity to provide reliable and high-quality service to these underserved areas. Leveraging existing distribution infrastructure, undergrid minigrids offer lower system costs compared to isolated minigrids while improving service reliability. These systems not only help DisCos reduce losses and create a lucrative mini-grid market but also save customers significant expenses annually. For communities already served by DisCos but struggling with unreliable power, mini-grids offer transformative access to reliable electricity, fostering local development through distributed energy resources. Rural and peri-urban areas with low reliability and promising load profiles emerge as prime candidates for commercial undergrid mini-grid projects.
