Project finance for mini-grids

The Mini-Grid Business

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Project finance has been instrumental in scaling large, grid-connected renewable energy projects, with well-established approaches that have facilitated trillions of dollars in lending to the sector. The result has been access to low-interest, long-term financing. This is exactly what mini-grids need to achieve similar success and growth. Like large-scale renewable power systems, mini-grids are critical infrastructure, yet they face unique challenges, particularly the risk associated with selling power at the retail level. Additionally, mini-grids differ from large-scale renewable projects in their stakeholder structures.

In this episode, Kellie Murungi, Head of Business Africa at INENSUS, joins host Nico Peterschmidt, CEO of INENSUS, to explore the principles of project finance and discuss what it will take to make mini-grids viable for this type of financing.
Discover why a wave of mergers and acquisitions is anticipated in the mini-grid sector, and how diversifying revenue streams through rural industrialization, edge computing from surplus electricity, and renewable energy certificates can make mini-grids more attractive for project finance. Additionally, learn how, over time, the financing sector may become more familiar with mini-grids as a new asset class.

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Twitter: INENSUS (@INENSUSgmbh) / X (twitter.com)
Visit www.inensus.com for more info.

Chapter

1. Project finance for mini-grids (00:00:00)

2. Project Finance in Energy Infrastructure (00:00:09)

3. Developers in Energy Project Finance (00:10:32)

4. Unique Challenges in Mini-Grid Finance (00:16:42)

5. Scaling Mini-Grid Project Finance (00:32:27)

6. Project Financing Operations and Oversight (00:41:22)

7. Structuring Mini-Grids for Project Finance (00:48:03)