Approximately 87 % of the 1.1 billion people without electricity live in rural areas characterised by remoteness and sparse population density, where the extension of national grids is often technically difficult, costly and inefficient. In contrast, decentralised electricity generation and distribution through smaller and more local systems such as micro/mini-grids and stand-alone systems are in most cases the more competitive solution. Microgrids are key in providing low-carbon alternatives for people and industries without access to electricity because they enable high penetration of renewables in the energy mix while providing grid-connected customers with improved service quality and system resilience with lower emissions. Their modular conception is easy to install and to use. Micro/mini-grids thus have tremendous potential to roll out clean and affordable energy supply.

To achieve universal energy access in 2030, the International Energy Agency (IEA) estimates that 60% of the rural people without electricity gain energy access by using mini/micro-grids or other off-grid decentralised solutions (IEA, 2016). Although renewable energy micro/mini-grids remain a relatively new phenomenon, the microgrid market is changing and maturing rapidly. The private sector is ready to scale up microgrids to reach more customers. ARE encourages governments and the private sector to work closely together on microgrid projects and to define clear policy frameworks, which empower private sector involvement while allowing governments to protect consumers from excessive tariffs and sub-standard products.