Tariff Considerations for Micro-grids in Sub-Saharan Africa
Policy makers and stakeholders face numerous considerations with when deciding if and how they would like to regulate electricity tariffs for micro-grids. This report examines the benefits and drawbacks of various regulatory structures and provides insight into successful methods.
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This report provides an analysis of the benefits and drawbacks of imposing national (uniform) tariffs or allowing developers to impose fully cost-reflective tariffs. A middle ground option also exists in which regulators can help balance socially beneficially price controls and the returns on investment developers require to attract capital financing to a market. This report also highlights the National Renewable Energy Laboratory’s REopt tool, which allows users to model a micro-grid and its levelized cost of electricity.