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.

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.