Following @DrJoeAbah 's request, I have done a thread on the What, Who & Where of Mini-Grids & Modular Refineries: Policy, practical, business & factual issues. @OmoKakafiala @Ayo_Ayileka @Hon_Ugwuanyi @iamtennygee @DieuEmeka @SGDamson @AdedoyinAfun @arkazaure @Bloomfield_LP

Mini-grids: (1) Simply put, a mini-grid is a web of electricity generation units (could be a power plant consisting of one or more generation units) & a distribution network/ system of the generation and distribution of electricity in a community or an area. @DrJoeAbah

(2) Under Nigerian law there are two (2) types of mini-grids: (a) An inter-connected or (b) an isolated mini-grid. An inter-connected mini-grid is one where the generation plant uses an already distribution company's (e.g. Eko Discos) facilities to distribute electricity.

In this case, it is just like using them as a transporter (imagine you produce tomatoes in Kano State and you need to supply tomato paste factory in Sokoto). The Disco is like the transporter. That is for inter-connected.

The 2nd type of mini-grid is an isolated mini-grid. In this case, the mini-grid operator builds its own distribution facilities rather than use the Disco's facilities as means of transportation (distribution) of the electricity.

(3) Nigerian law allows you to have a mini-grid of up to 1mw which can provide electricity probably for around 1,500 homes (by Nigerian standards). A 1mw mini-grid plant may be able to service the whole of Randle & or Adeniran Ogunsanya in Surulere.

(4) @NERCNG does have some regulatory oversight in relation to mini-grids (especially from a tariffs point of view). Advantages and disadvantages are next.

(5) Advantages- (a) Quicker and faster solution (b) This is particularly faster for communities, especially areas where the grid or Discos are not interested. (c) It is not necessarily economically feasible or viable to extend the grid to some area so mini-grids could be useful

(d) can be a quicker revenue earner for investors/developers rather than larger projects (e) avoids the stress of larger projects and can be a pilot to larger projects. (f) generally bring the power closer to the load and can ease the grid for larger more industrial usage

(6) Disadvantages- (a) like premium power, can be higher than grid power. It is, however, cheaper than self-generation (e.g. I pass my neighbour generator)- remember the economies of scale! (b) Some Discos can be difficult especially for inter-connected mini-grids @DrJoeAbah

(c) can be stressful at times negotiating with communities, associations, estates that are not organized (d) DUOS pricing too can be a challenge (e) major challenge can generally be a Disco, another point, again! @oladapoyusuf @tobiBowale @Bloomfield_LP

There are a number of successful mini-grids already in place. I would do another thread on modular refineries and the pros and cons in Nigeria @MinistryofPower @EngrSMamman

If you want to know more about energy (oil, gas & power) you can pre-order copies of my ( @ayodelegoni) new books on Petroleum- Understanding Petroleum (Oil and Gas) Transactions & or my book on Electric Power. @OmoKakafiala @DrJoeAbah @arkazaure @EngrSMamman @iamtennygee