PA00XKT9

TECHNICAL ASSISTANCE TO THE ETHIOPIAN ELECTRIC
AUTHORITY (EEA) ON OFF-GRID REGULATORY

FRAMEWORKS
OFF-GRID TECHNICAL STANDARDS AND GREEN MINI-

GRID FEASIBILITY STUDY GUIDELINES
October 2020
This publication was produced for review by the United States Agency for International Development
(USAID). It was prepared by the National Association of Regulatory Utility Commissioners (NARUC).
OFF-GRID TECHNICAL STANDARDS AND GREEN MINI-GRID FEASIBILITY STUDY GUIDELINES (FINAL
REPORT)
OFF-GRID TECHNICAL STANDARDS AND

GREEN MINI-GRID FEASIBILITY STUDY
GUIDELINES
Project Title: Technical Assistance to the Ethiopian Electric Authority (EEA)

on Off-Grid Regulatory Frameworks
Sponsoring USAID Office: AFR/SD
Project Number #: AID-OAA-A-16-00042
Recipient: National Association of Regulatory Utility Commissioners

(NARUC)
Date of Publication: October 2020
Authors: The Cadmus Group, LLC and Trama TecnoAmbiental
This publication is made possible by the generous support of the American people through the United
States Agency for International Development (USAID). The contents are the responsibility of the
National Association of Regulatory Utility Commissioners (NARUC) and do not necessarily reflect the
views of USAID or the United States Government.
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Table of Contents
ACRONYMS & ABBREVIATIONS ........................................................................................ 7
PART I: OFF-GRID TECHNICAL STANDARDS ................................................................. 9
INTRODUCTION .................................................................................................................... 9
Intended audience....................................................................................................................................................... 9
Approach ...................................................................................................................................................................... 9
Mini-grid definition ..................................................................................................................................................... 9
Rated Peak Load definition ..................................................................................................................................... 10
Technical regulations currently applicable in Ethiopia ..................................................................................... 10
Technical standards .................................................................................................................................................. 11
Balancing innovation and regulation ..................................................................................................................... 11
1. POWER QUALITY AND ELECTRICITY SERVICE STANDARDS .......................... 12
Power Quality (PQ) ................................................................................................................................... 12
Electricity Service: Availability, Capacity, and Reliability.................................................................... 17
Safety Standards .......................................................................................................................................... 19
Functionalities .............................................................................................................................................. 19
2. OPERATIONAL STANDARDS .......................................................................................................... 21
2.1. Customer accountability ........................................................................................................................... 22
2.1.1. Level of service monitoring.................................................................................................................. 22
2.1.2. Service agreement .................................................................................................................................. 22
2.2. Off-grid operator accountability ............................................................................................................. 23
2.2.1. Technical reporting ................................................................................................................................ 23
2.2.1.1. Technical Key Performance Indicators (TKPIs) .............................................................................. 23
2.2.1.2. Technical documentation ..................................................................................................................... 24
2.2.2. Commercial reporting........................................................................................................................... 24
2.2.2.1. Commercial Key Performance Indicators (CKPIs) ........................................................................ 24
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2.2.3. Other Key performance Indicators (OKPIs) ................................................................................... 25
2.2.3.1. Social KPIs ................................................................................................................................................ 25
2.2.3.2. Health, safety, and environmental KPIs ............................................................................................. 25
2.2.4. Monitoring progress .............................................................................................................................. 25
2.2.4.1. On-site monitoring ................................................................................................................................ 26
2.2.4.2. Remote monitoring................................................................................................................................ 26
2.2.4.3. Verification ............................................................................................................................................... 26
2.2.4.4. Restoration times ................................................................................................................................... 27
2.3. Key Performance Indicators Summary .................................................................................................. 28
PART 2: GREEN MINI-GRID FEASIBILITY STUDY GUIDELINES ................................. 29
INTRODUCTION .................................................................................................................. 29
1.1 Background and rationale ......................................................................................................................... 29
1.2 Intended audience ....................................................................................................................................... 29
1.3 What is a Detailed Feasibility Study (DFS)? .......................................................................................... 29
2 STEPS TO A DETAILED FEASIBILITY STUDY ....................................................................................... 30
2.1 SITE ASSESSMENT .................................................................................................... 30
2.1.1 Introduction to site assessment .............................................................................................................. 30
2.1.2 Surveys........................................................................................................................................................... 30
2.1.2.1 Socio-demographic characteristics of target village................................................................... 31
End-user survey .................................................................................................................................................... 32
2.2 Geospatial analysis ...................................................................................................................................... 33
2.3 Recommendations ...................................................................................................................................... 34
2.4 Expected products for the site assessment in a DFS ......................................................................... 35
3 ELECTRICITY DEMAND .............................................................................................. 35
3.1 Methodology: Tiered energy packages .................................................................................................. 35
3.2 Importance of demand estimates ............................................................................................................ 36
3.3 Current electricity demand ...................................................................................................................... 38
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3.4 Demand side management (DSM) .......................................................................................................... 38
3.5 Demand stimulation ................................................................................................................................... 38
3.6 Consolidation of inputs into the studies ............................................................................................... 39
3.8 Expected products for the DFS Electricity Demand .......................................................................... 41
4 MINI-GRID COMPONENTS AND SIZING .................................................................................. 41
4.1 Generation.................................................................................................................................................... 41
4.1.1 PV support structure ............................................................................................................................. 42
4.1.2 PV array .................................................................................................................................................... 42
4.1.3 PV inverter (AC-coupled) / Charge Controllers (DC-coupled) ................................................. 42
4.1.4 Battery inverter / chargers ................................................................................................................... 42
4.1.5 Batteries.................................................................................................................................................... 43
4.1.6 Backup genset.......................................................................................................................................... 45
4.1.7 Protection of persons and equipment against electrical hazards ................................................ 45
4.2 Distribution Network ................................................................................................................................ 46
4.3 Techno-economic analysis ........................................................................................................................ 46

4.3.1 Techno-economic analysis tools ......................................................................................................... 47
5 IMPORTANT ADDITIONAL CONSIDERATIONS.................................................... 48
5.1 Maintenance plan ...................................................................................................................................... 48

5.1.1 Basic daily maintenance ......................................................................................................................... 48
5.1.2 Specialized preventive maintenance ................................................................................................... 49
5.1.3 Specialized corrective maintenance ................................................................................................... 50
5.2 Risk Assessment .......................................................................................................................................... 50
5.4 Expected outputs for the DFS ................................................................................................................. 52
6 MODULARITY AND EXPANDABILITY ..................................................................... 52
7 DRAWINGS .................................................................................................................... 52
8 COMPONENTS SUMMARY ......................................................................................... 53
PART III: CHECK-LIST OF OVERALL RECOMMENDATIONS ...................................... 54
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List of Figures
FIGURE 1: BALANCING REGULATION AND INNOVATION, PRACTICAL GUIDE TO REGULATORY TREATMENT
OF MINI-GRIDS (USAID, NARUC, 2017) ..................................................................................................... 11
FIGURE 2: COMPARISON OF ANNUAL ENERGY CONSUMPTION OF AC VS. DC REFRIGERATORS; “THE STATE
OF THE OFF-GRID APPLIANCE MARKET” REPORT (GLOBAL LEAP, 2020) .............................................. 12
FIGURE 3: FREQUENCY-BASED ACTIVE POWER CONTROL EXAMPLE, SMA ........................................................ 15
FIGURE 4: TEMPORARY VOLTAGE SAG CAUSED BY MOTOR STARTING (IEEE 1159-2019) .............................. 16
FIGURE 5: RIPPLE ILLUSTRATION BECAUSE OF AN AC-TO-DC WAVEFORM ...................................................... 17
FIGURE 6: OPERATIONAL REPORTING FRAMEWORK FOR EEA, SOURCE: TTA ................................................ 22
FIGURE 7: DATA MONITORING STAGES.................................................................................................................. 26
FIGURE 8: PRODUCTIVE USE LOAD PROFILES (SOURCE: WILLIAMS ET AL. 2018) .............................................. 36
FIGURE 9: PRODUCT SPECIFICATIONS OF TYPICAL PRODUCTIVE USES (SOURCE: LIGHTING GLOBAL 2019)37
FIGURE 10: INVESTMENT REQUIREMENTS AND FINANCIAL PERFORMANCE OF DIFFERENT PRODUCTIVE USES
(SOURCE E4I) ..................................................................................................................................................... 39
FIGURE 11: TYPICAL DAILY LOAD PROFILE OF A VILLAGE (EXAMPLE BUILT BY TTA) ........................................ 40
FIGURE 12: AC-COUPLED, DC-COUPLED AND HYBRID AC/DC-COUPLED SOLAR PV MINI-GRIDS .............. 41
FIGURE 13: PERFORMANCE CHARACTERISTICS OF BATTERY CHEMISTRIES (SOURCE: CLAUDE CAMPION, 3C
PROJECTS, FRANCE) .......................................................................................................................................... 43
FIGURE 14: BATTERY SELECTION FOR GMGS (SOURCE: CLAUDE CAMPION, 3C PROJECTS, FRANCE) ........ 44
List of Tables
TABLE 1: OTHER MINI-GRID DEFINITIONS ............................................................................................................... 10
TABLE 2: POWER QUALITY DEFINITIONS ................................................................................................................ 12
TABLE 3: PROPOSED POWER QUALITY CATEGORIES (TTA) ............................................................................... 13
TABLE 4: AC VOLTAGE VARIATION PER POWER QUALITY CATEGORY ............................................................. 14
TABLE 5: DC VOLTAGE VARIATION PER POWER QUALITY CATEGORY ............................................................. 14
TABLE 6: VOLTAGE IMBALANCE PER POWER QUALITY CATEGORY ................................................................... 14
TABLE 7: FREQUENCY PER POWER QUALITY CATEGORY .................................................................................... 15
TABLE 8: TOTAL HARMONIC DISTORTION PER POWER QUALITY CATEGORY ................................................ 15
TABLE 9: TRANSIENTS PER POWER QUALITY CATEGORY .................................................................................... 16
TABLE 10: SHORT AND LONG-VOLTAGE DURATIONS PER POWER QUALITY CATEGORIES .......................... 16
TABLE 11: RIPPLE VARIATION AND SWITCHING NOISE PER POWER QUALITY CATEGORY ............................. 17
TABLE 12: POWER QUALITY ATTRIBUTES PER CATEGORY ................................................................................... 17
TABLE 13: TIERS OF ELECTRICITY SERVICE AVAILABILITY ....................................................................................... 18
TABLE 14: TIERS OF ELECTRICITY SERVICE CAPACITY ............................................................................................ 18
TABLE 15: PROPOSED POWER RELIABILITY CATEGORIES (TTA)......................................................................... 18
TABLE 16: NEP 2.0 SUMMARY ON COMPONENT ELECTRIFICATION ................................................................... 19
TABLE 17: INTERCONNECTION REQUIREMENTS DEPENDING ON RATED PEAK LOAD OF THE ASSETS AND
DISTANCE TO THE NATIONAL GRID................................................................................................................ 20
TABLE 18: REMOTE MONITORING REQUIREMENTS DEPENDING ON RATED PEAK LOAD OF THE ASSETS AND
DISTANCE TO THE NATIONAL GRID................................................................................................................ 21
TABLE 19: RECOMMENDED RESTORATION TIMES BY POWER RELIABILITY CATEGORY (SOURCE: TTA) ...... 27
TABLE 20: OFF-GRID KEY PERFORMANCE INDICATORS (KPIS) SUMMARY........................................................ 28
TABLE 21: MAIN INFORMATION TO BE GATHERED THROUGH A VILLAGE SURVEY ........................................... 31
TABLE 22: SAMPLE TYPE AND NUMBER OF BUSINESSES AND INSTITUTIONS TABLE, SURVEY DEMAND ........... 33
TABLE 23: INDICATED SERVICE OFFERED BY EACH EDA....................................................................................... 35
TABLE 24: SAMPLE HOUSEHOLD DEMAND PER TIER MINI-GRID CONNECTIONS TABLE .................................... 38
TABLE 25: SAMPLE ANCHOR LOADS INFORMATION TABLE .................................................................................. 38
TABLE 26: RISK ASSESSMENT FOR GMG ................................................................................................................. 50
TABLE 27: GMG MAIN TECHNICAL CHARACTERISTICS SUMMARY ...................................................................... 53
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Acronyms & Abbreviations
AC Alternating Current
AtP Ability to Pay
CAPEX Capital Expenditure
CES Collective Electrification System
DC Direct Current
DFS Detailed Feasibility Study
DSM Demand Side Management
DoD Depth of Discharge
EDA Energy Daily Allowance
EEA Ethiopian Energy Authority
EEU Ethiopian Electric Utility
ESMAP Energy Sector Management Assistance Program
GMG Green Mini-grid
GPS Global Positioning System
HH Household
HRSL High Resolution Settlement Layer
IEC International Electrochemical Commission
IEEE Institute of Electrical and Electronics Engineers
IES Individual Electrification System
IEV International Electrotechnical Vocabulary
IRENA International Renewable Energy Agency
IRR Internal Rate of Return
KPI Key Performance Indicator
kVA Kilo Volt-Amps
LED Light-emitting diode
LV Low Voltage
MG Mini-grid
MGRL Main Grid Readiness Level
MTF Multi-Tier Framework
MV Medium Voltage
NARUC National Association of Regulatory Utility Commissioners
NASA National Aeronautics and Space Administration
NEP National Electrification Program
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NPV Net Present Value

NREL National Renewable Energy Laboratory
PAYGO Pay As You GO
PQ Power Quality
PR Performance Ratio
PSH Peak Sun Hours
PUE Productive Uses of Electricity
PV Photovoltaics
OPEX Operational Expenditure
OSM Open Streets Maps
O&M Operation and Maintenance
QAF Quality Assurance Framework
RMC Remote Monitoring and Control
SHS Solar Home System
SLD Single Line Diagram
TTA Trama TecnoAmbiental
THD Total Harmonic Distortion
TS Technical Specification
USAID United States Agency for International Development
WtP Willingness to Pay
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PART I: OFF-GRID TECHNICAL STANDARDS
Introduction
Intended audience
This document is written for the Ethiopian Energy Authority (EEA) and off-grid project implementers
(both public and private) in Ethiopia, as a framework and recommendations for technical regulation.
As per the recent off-grid developments in Ethiopia and the rural electrification goals for 2030 set
forth in the National Electrification Program 2.0 (NEP 2.0), EEA, NARUC and the consultants have
identified off-grid technical standards as an important missing piece for off-grid market development,
monitoring, and evaluation.
Approach
This document provides a series of recommendations for the minimum power quality, power service
availability, and operational standards in a demand-driven approach, or in other words, for off-
grid electricity tiers as per the end-user's requirements for both direct current (DC) and
alternating current (AC) Green Mini-Grids (GMG), and more in general for off-grid assets (such as
autonomous renewable energy plants). This document categorizes the service level provided to
the end-user, from least to most technically demanding.
The ESMAP Multi-tier Framework1 for measuring energy access categorization has been used and
adapted in this document for capacity categorization and proposed values, while the International
Electrochemical Commission (IEC) Technical Specification (TS) 62257-22 and the Quality Assurance
Framework3 have been used to propose categorizations and values of power quality and power
reliability (the values have been adapted to be suitable for the Ethiopian context). The concept behind
these tiered service levels is to recognize the need for this categorization—as opposed to
regulating on a kWh basis only—motivated by the cost implications and the different energy needs of
the tiers and the end-user’s requirements of many rural customers.
Additionally, this document should be circulated among key stakeholders (including renewable and
electrical engineer associations, relevant project developers and off-grid associations, donors, and
financiers) for comments and feedback to foster a participatory approach.
Mini-grid definition
The term mini-grid (also referred to as a rural micro-grid or MG) refers to a small-scale distribution
network (LV or MV) supplied by one or more power generation plants. It is usually conceived to
operate as an isolated system with clearly defined physical and electrical boundaries, however it can
be interconnected to other electricity grids such as the national grid. A mini-grid is comprised of the
following elements:
 Electricity generation (power plant, including storage and distributed generation);

 Electricity distribution (distribution network);
 Electricity connection points (the physical and electrical boundaries);
 Electricity metering (metering systems, usually at the connection points); and
1 Energy Sector Management Assistance Program (ESMAP), Multi-Tier Framework for Measuring Energy Access.
https://www.esmap.org/node/55526
2 IEC TS 62257 Series, “Recommendations for Small Renewable Energy and Hybrid Systems for Rural Electrification”.
3 National Renewable Energy Laboratory, Quality Assurance Framework for Mini-grids, 2016.
https://www.nrel.gov/docs/fy17osti/67374.pdf
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 Electricity consumers (may also be co-located with generators, e.g., solar homes,
rooftop generation, etc.). Internal wiring and appliances may be included or not
depending on the scope of work undertaken by the operator.
Table 1: Other mini-grid definitions

Source Definition
IEC Technical A micro-grid (or mini-grid) is a grid that transfers a capacity level of less than
Specification 62257-1 100 kVA and powered by a micro-power plant
Definition of IES and CES Individual Electrification Systems (IES) supplies electricity to one
by IEC Technical consumption point (usually with a single energy resource point) and a Collective
Specification 62257-1 Electrification System (CES) supplies electricity to multiple consumption points
(using a single or multiple energy resource points).
What is a Green Mini-grid?
A Green Mini-grid (GMG) is a mini-grid which mainly uses local renewable resources (such as solar,
wind, biomass, or hydro) to generate power and does not depend on fossil fuels to serve client
electricity needs. The cost-effectiveness of GMG versus conventional fuel-based mini-grids depends
on the local energy resources, fuel prices, financial incentives, and the utilization rate of the power
generation.
Solar photovoltaics (PV) tend to be the least expensive option and the most often chosen technology
in remote areas for power generation. This is the result of the following factors:
 Ubiquitous resource
 Low installation capital expenditure (CAPEX)
 Quick installation pace
 Simplicity (no moving parts, proven technology)
 Robust operations and maintenance (O&M)
Rated Peak Load definition

This document uses the term “rated peak load” throughout as a reference for categorization of off-
grid assets. The peak load in Kilovolt-Amps (kVA) is the maximum value of a load, real or planned,
that occurs in a given period of time (e.g. a day, month, or year) not as an instantaneous value but as
an average of the minimum resolution time (i.e. 10 minutes or 1 hour typically).4 The rated peak load
could be equal to the maximum value of the load over a period of time (peak load) or a safety factor
could be applied (i.e., 10% or 15%) for the purposes of rating the peak load.
Rated Peak Load = Maximum Load x Safety Factor
Technical regulations currently applicable in Ethiopia

 Council of Ministers Energy Regulation No. 447/2019
 Draft Mini Grid Directive NO…./2020 (Version 3, Aug 2020)5
4 For more information consult the IEV Electropedia reference 601-01-16.

5As of September 2020, EEA’s final draft mini-grid directive has been approved by their Board. The draft is currently awaiting
approval from the Attorney General and incorporates previous inputs from the following documents reviewed earlier in
development of this Implementation Plan: Directive for the Issuance of Licenses for the Electricity Supply Industry (Off-Grid
Only), Tariff Guidelines and Methodology for Off-Grid Systems, Quality of Service Standards, and Design Standards for Rural
Electrification.
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Technical standards
The proposed technical standards can be sub-divided into 4 main categories:
 Power quality
 Power availability
 Power reliability
 Operational requirements
Balancing innovation and regulation

When regulating a market, the balance between regulating enough to protect customers and investors
while not hindering innovation through over-regulation is sensitive. Off-grid assets have experienced
a high degree of innovation at different steps of the value chain (finance, logistics, meters, storage,
power electronics). More information about renewable mini-grids innovation can be found in the
IRENA Innovation Outlook Renewable Mini-grids 2016 report.6
Figure 1: Balancing Regulation and Innovation, Practical Guide to Regulatory

Treatment of Mini-grids (USAID, NARUC, 2017)
Certain appliances have become more efficient with regards to electricity consumption in recent years
thanks to innovation. This is particularly true for DC lighting bulbs (LED), entertainment appliances
such as televisions that can be powered through 12/24V DC input or 100-240V AC input, and
refrigerators (Figure 2). Moreover, other appliances like motors (e.g., for milling) are currently being
tested in DC or renewable-energy powered mini-grids in countries like Nigeria and Tanzania.7
Ultimately, innovation drives cost down.
6International Renewable Energy Agency, Innovation Outlook: Renewable Mini-Grids, 2016. https://www.irena.org/-
/media/Files/IRENA/Agency/Publication/2016/IRENA_Innovation_Outlook_Minigrids_2016.pdf
7Dougherty, Jane, Milling on Mini-Grids: How Africa’s Largest Crop Could Go Diesel Free, April 16, 2020.
https://nextbillion.net/milling-on-mini-grids-africa-maize/
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Figure 2: Comparison of annual energy consumption of AC vs. DC refrigerators; “The

State of the off-grid appliance Market” report (GLOBAL LEAP, 2020)
The above figure shows a comparison between the consumption in kWh/year of DC refrigerators
(green triangles) and AC fridges (blue dots) for different volumes (in liters). For the same volume
capacity, DC fridges consumer less energy; in other words, they are more efficient in using electricity.
Technical regulation should find the right balance between protecting customers and investors while
favoring innovation.
1. POWER QUALITY AND ELECTRICITY SERVICE

STANDARDS
Power Quality (PQ)
Power quality refers to the diversion from the nominal values of several electricity attributes (mainly
voltage, frequency, and harmonics) and how they affect the interoperability between generation
sources, distribution networks, and consumption loads (receivers of electricity).
Table 2: Power Quality definitions

Source Definition
IEEE IEEE 1100:2005 - Power quality (PQ): The concept of powering function satisfactorily in its
electromagnetic environment without introducing intolerable electromagnetic disturbances to
anything in that environment
IEEE 1159:2019
 Main text definition “The term power quality refers to a wide variety of electromagnetic
phenomena that characterize the voltage and current at a given time and at a given
location on the power system””
 Glossary annex definition “The concept of powering and grounding electronic equipment
in a manner that is suitable to the operation of that equipment and compatible with the
premise wiring system and other connected equipment.”
Power quality is usually linked to compatibility with appliances and the potential damage to these
appliances or receivers if some or any of the electricity attributes change or exceed certain thresholds.
Historically these standards were created to protect appliances that were highly sensitive to changes
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in voltage, frequency, or harmonics from the rated value at which they were manufactured to operate.
However, technology developments in the last decade has made these appliances more robust and
sturdier in responding to these variations.
Three categories of end-user power quality are presented in the following table:
Table 3: Proposed Power Quality Categories (TTA)
CATEGORY POWER QUALITY REQUIRED BY THE END- EXAMPLES

USER
Power Quality I (PQI) The most basic category, for those users that  Typical rural households
do not require a high-power quality standard of consuming several lighting points
their electricity power supply. These customers and charging loads
consume electricity mainly for lighting, phone
 Street lighting
charging, and other similar low-consumption
high-tolerance devices, and therefore technical  Phone charging stations
regulation can be minimal. Frequency regulation  Dedicated source-to-power
is not restricted here. solutions (i.e., stand-alone systems)
Power Quality II (PQII) This intermediate category provides tighter  Businesses

power technical requirements than the  Places of worship
previous category, like surge protection for  Community centers
transients or frequency regulation that are not
 Health centers without sensitive
regulated in PQI.
equipment
Power Quality III (PQIII) The most demanding power quality category:  Healthcare equipment, such as
for those users and appliances that require the respirators
least disturbances (i.e., have the least tolerance  Electric motors
for disturbances) in the electricity supply and
 Light industries
therefore the tightest power quality
regulations.  Rural households with heavier
power consumptions
 Telecom stations
 Other critical loads
Power quality attributes:
a. Voltage
In Ethiopia, 230V is the nominal voltage level for AC low voltage distribution in a single-phase
distribution line, and 400V is the nominal voltage level from phase to phase in a 3-phase line. The
Ethiopia National Electricity Distribution Code (ENEDC) establishes the maximum design voltage
variation for High, Medium, and Low Voltage.
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In line with the ENEDC, the proposed voltage variation values for the three PQ categories are as
follows:
Table 4: AC voltage variation per Power Quality Category
POWER QUALITY CATEGORY Voltage Variation

PQI NA
PQII < 10%
PQIII < 10%
In DC off-grid assets, the DC bus that distributes electricity is typically coupled to the DC voltage at
the battery level (source).8 Therefore, the variations that occur in the voltage level because of the
battery’s state of charge (charging, discharging, floating) is translated into variations of the voltage level
at the DC distribution, too. The following maximum variations are recommended for any of the power
qualities, as long as the appliances and machines can work within range:
Table 5: DC voltage variation per Power Quality Category
POWER QUALITY CATEGORY Voltage variation

PQI
PQII ±25%
PQIII
Voltage imbalance. In three-phase AC distribution networks, the voltage imbalance is defined as

the deviation from the average of the three-phase voltage or current divided by the average three-
phase voltage or current, expressed in percentage. Voltage imbalance occurs only in three-phase and
this can cause motor damage due to excessive heat. The proposed maximum voltage imbalances for
each power quality category are as follows:
Table 6: Voltage Imbalance per Power Quality Category
POWER QUALITY CATEGORY Voltage Imbalance

PQI NA9
PQII < 5%
PQIII < 3%
b. Frequency
Frequency, defined as the nominal frequency of the oscillations of alternating current (AC) in a wide
area synchronous grid transmitted from a power station to the end-user is 50Hertz (nominal value).
Frequency oscillations allow renewable energy control systems to adjust power generation to match
demand (among other features) through “frequency-based active power control.” This is also called
power/frequency droop. This is a very important characteristic as it is relied on by most solar PV mini-
8 Converters and stabilizers are optional to in DC distribution system.

9 It is anticipated that no rural customer of PQI will require a 3-phase connection.
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grids and autonomous renewable energy generation power plants to adjust generation based on the
state of the battery charge and demand.
Figure 3: Frequency-based active power control example, SMA
To allow for the operability of these controls, wide ranges of frequency need to be permitted in AC
grids. The proposed regulation per end-user category is as follows:
Table 7: Frequency per Power Quality Category
POWER QUALITY CATEGORY Frequency regulation

PQI No regulation
PQII 46Hz < f < 54 Hz
PQIII 48 Hz < f < 52 Hz
For DC grids, there is no frequency and therefore no frequency regulation.
c. Harmonics
A harmonic is a voltage or current at a multiple of the fundamental frequency of the electrical system
(50Hertz in Ethiopia). It is produced by the action of non-linear loads such as rectifiers, discharge
lighting, or saturated magnetic devices. Harmonic frequencies result in increased heating in some
equipment and conductors and could cause major damage to equipment, such as motors and variable
speed drivers. The Total Harmonic Distortion (THD) is proposed to be regulated as follows:
Table 8: Total Harmonic Distortion per Power Quality Category
POWER QUALITY CATEGORY Harmonics (THD)

PQI < 10%
PQII < 5%
PQIII < 3%
d. Transients
A transient is a sudden change in the steady-state condition of voltage, current, or both. Transients in
electrical distribution networks result from the effects of lightning strikes and/or network switching
operations, such as capacitor banks.
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Table 9: Transients per Power Quality Category
POWER QUALITY CATEGORY Transients

PQI No protection
PQII Surge protection
PQIII Surge protection
e. Short-duration and Long-duration Voltage Variations
Short-duration voltage variation (also called “discontinuities” or short interruptions) are root-mean-
square (rms) deviations from the nominal value for a greater time than 0.5 cycles of the power
frequency, but less than or equal to 1 minute. These variations are typically caused by the operation
of automatic reclosing systems like fault conditions or energizing loads that require high starting
current.
Figure 4: Temporary voltage sag caused by motor starting (IEEE 1159-2019)
Long-duration voltage variation are rms deviations at power frequencies for longer than 1 minute.
Long-duration voltage variation can be over-voltage, under-voltage or simply voltage interruptions.
Over-voltage is generally caused by load variations on the system and system switching operations.
Table 10: Short and Long-Voltage Durations per Power Quality Categories
POWER QUALITY CATEGORY Short-Duration Variations Long-Duration Variations

PQI < 5/day < 10/day
PQII < 1/day < 5/day
PQIII < 1/week < 1/day
f. Ripple
For DC grids, ripple is a residual periodic variation of the DC voltage due to the AC-to-DC conversion
process. This ripple results from an incomplete suppression of the AC waveform after rectification.
DC ripple can cause additional wear on devices designed to operate at a fixed DC voltage.
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Figure 5: Ripple illustration because of an AC-to-DC waveform

Peak to peak ripple variation is important to regulate to minimize the potential wear on devices:
Table 11: Ripple variation and switching noise per Power Quality Category
POWER QUALITY CATEGORY Peak to peak ripple (%) Switching Noise

PQI 10% Unfiltered
PQII 5% Transient noise minimized
PQIII 2% Transient + ripple noise minimized
g. Summary table
Table 12: Power Quality attributes per Category

POWER QUALITY PARAMETER PER
PQI PQII PQIII
POWER QUALTY CATEGORY
Voltage Variation NA ±10% ±10%
Voltage Imbalance (only 3-phases) NA <5% <2%
46Hz < f < 54 48 Hz < f < 52
Frequency variations not regulated
Hz Hz
AC Harmonics < 10% < 5% < 3%
Transients No protection Surge Protection
Short-Duration Voltage Variations < 5/day < 1/day < 1/week
Long-Duration Voltage Variations < 10/day < 5/day < 1/day
Voltage variation ±25% ±25% ±25%
10 % peak to
DC Percent Ripple 5% pk-pk 2% pk-pk
peak (pk-pk)
Transient
Ripple noise
DC ripple ¬ switching noise Unfiltered noise
also minimized
minimized
Electricity Service: Availability, Capacity, and Reliability

Electricity availability, capacity, and reliability are the main electricity service standards. The following
tables are based on the existing Multi-Tier Framework (MTF) and IEC 62257-2 categorization for
availability and capacity of the different end-user tiers of electricity.
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This section uses the term “tier” as an energy categorization of a customer or connection from the
service availability and capacity perspective. From the most basic category (Tier 1) to the most
demanding category (Tier 5) in terms of availability and capacity of the electric service.
a. Availability is defined as the number of hours of electricity required for the different
end-user tiers as per their needs, regardless of the quality of the electricity during
these hours.
Table 13: Tiers of electricity service availability

MULTITIER FRAMEWORK Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
IEC TS 62257-2 terms E D C B A
Daily Availability (hours) > 4 hours >8 > 16 > 23
Evening Availability
>1 >2 >3 >4
(7PM to 7AM)
b. Capacity is the maximum power provided for consumption and daily energy availed
or served regardless of the power quality provided.
Table 14: Tiers of electricity service capacity

MULTITIER
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
FRAMEWORK
IEC TS 62257-2 terms E D C B A
Power Rating (W or kW) ≥3 W ≥50 W ≥200 W ≥800 W ≥2 kW
Daily energy Ratings (Wh or
≥12 Wh/d ≥200 Wh/d ≥1 kWh/d ≥3.4 kWh/d ≥8.2 kWh/d
kWh/day)
Individual (I), Collective (C) Individual or Individual or Individual or
Individual Individual
or Businesses (B) Collective Collective Collective
- electrical - electric lighting
lighting - electric lighting - entertainment
- air - entertainment - charging loads
- electrical circulation - charging loads (e.g. phone
Services lighting [1,000 - television, (e.g., phone charging) Any service
lmhr per day] - charging charging) - refrigeration
loads (e.g., - small - basic cooking
phone refrigeration (pressure
charging) cooking)
c. Reliability is indicated by the total number of unplanned and planned interruptions in

comparison to the agreed service availability (Tier 1 to 5)
Table 15: Proposed Power Reliability Categories (TTA)
CATEGORY POWER RELIABILITY VALUES

Power Reliability I (PReI) Both planned and unplanned interruptions should ensure a 90% ≥ 90%
reliability supply throughout a year
Example: Basic households and businesses
Power Reliability II (PReII) Both planned and unplanned interruptions should ensure a 95% ≥ 95%
reliability supply throughout a year
Example: Schools and high consumption households (with refrigerators)
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Power Reliability III (PReIII) Both planned and unplanned interruptions should ensure a 99% ≥ 99%
reliability supply throughout a year.
Example: Health centers and small industrial customers
The above-defined percentages are calculated on yearly basis, adding the number of hours the service
has not been available to the end-user (planned and unplanned) and dividing them to the equivalent
number of hours the service should have been available as per the Tier availability (Tier 1 to Tier 5).
Safety Standards
Off-grid assets should comply with the Ethiopian electrical safety standards or national code, whether
they are DC or AC. Mini-grids use complex technology that sometimes includes energy storage and
they could pose chemical and electrical hazards if not properly handled and operated.
Beyond complying with safety standards, certified electricians and/or competent professionals should
always be employed when executing, operating, and supervising electrical works. The decision of
higher voltages than Low Voltage distribution (i.e. Medium Voltage) should be carefully considered, as
the safety measures and protocols in Medium Voltage are significantly stricter and require specialized
technicians. Beyond the safety implications, there is also a cost implication as the professional fees and
equipment that needs to be in place has a higher cost.
Functionalities
The following functionalities should be provided as mandatory or optional depending on the category
threshold of the off-grid power system. They should also be considered based on the component
electrification project definitions per the NEP 2.0. The NEP 2.0 define component electrification as
follows:
Table 16: NEP 2.0 Summary on component electrification

Distance Component
to National Grid electrification strategy as
per NEP 2.0 Phase 1: 2025 Phase 2: 2030
A. On-
65% of the
grid access (customers
population (15 96% of the population
within 2.5km from national
million households)
grid)
< 2.5km
3.3 million households
3.3 million HH
B. Off-grid access, short-
served with off-grid
connected to the
term pre-electrification
technologies first (Solar
national grid
Home System (SHS))
5 million HH with off- 5 million HH connected
C. Off-grid access, mid-term
2.5km to 25km grid technologies (SHS + to national grid (least
pre-electrification
mini-grids) cost)
> 25km D. Long-term off-grid 0.9 million households (4% of the population)
As an immediate consequence, any off-grid asset that is installed beyond 25km from the national grid
is considered to be “long-term off-grid” and not planned to be interconnected to the national grid in
the foreseeable future.
a. Main Grid Readiness
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These technical standards suggest three levels of main grid readiness based on the maximum energy
demand they serve in kVA and distance to the national grid, as per the NEP 2.0:
 Main Grid Readiness level 0 (MGRL0), for off-grid infrastructure projects that fall into
the long-term rural category (beyond 25km as per NEP 2.0) and have a rated peak load of 150
KVA as per the “Small Connections” category definition in the ENEDC.10 These projects do
not need to comply with interconnection procedures or synchronization protocols and
standards, nor with the national distribution network construction standards, as they are
expected to never interconnect to the main grid. Project developers may select any
technology and materials as long as they comply with the health and safety codes of Ethiopia
and they comply with other standards recommended and presented in this document.
 Main Grid Readiness level 1 (MGRL1), for infrastructure that may be interconnected to
the national grid at some point in the future as per the projections of NEP 2.0, or for
infrastructure that falls within the category of “Medium Connections” as per the ENEDC
based on the maximum energy demand. For these projects, following a minimum of 1-year
notice by EEU or other relevant authority, the project operator will need to comply with
interconnection procedures, synchronization protocols, and distribution network standards
defined in the interconnection or upgrade solicitation requirements. Additionally, the
distribution network must comply with the Low Voltage and Medium Voltage standards,
requirements, and interconnection voltage as per the agreement with EEU.
 Main Grid Readiness level 2 (MGRL2), for infrastructure that falls into the category of
“Big Connections,” as per the ENEDC. Here, the main grid readiness level of the mini-grid
should be immediate, meaning that from the moment the project is commissioned it should
be capable of interconnection with the national grid without any upgrade or retrofitting.
Additionally, the transmission and distribution network standards should comply with EEU
standards.
Table 17: Interconnection requirements depending on rated peak load of the assets and
distance to the national grid
RATED PEAK LOAD (thresholds from ENEDC11)

Distance < 150kVA 150kVA to 5MVA >5MVA
Only solar kits as per NEP 2.0, therefore No market opportunities here
< 2.5km interconnection requirements are not
applicable
2.5km to
MGRL1 MGRL2
25km
MGRL 1 or 2 depending on
MGRL0
>25 km project, upon project scope, grid
interconnection study
b. Remote Monitoring and Control
Remote Monitoring and Control (RMC) is the capacity to observe and manage off-grid power plants,
distribution networks, and smart-meters with some degree of automation. RMC is a useful feature for
technical cooperation and asset operators as it provides data that can inform maintenance operations
in remote locations and allows the evaluation of technical parameters and operability of off-grid assets
10Ethiopian Energy Authority (EEA), Ethiopia National Electricity Distribution Code, Draft, 2018.
11 Ibid.
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or end-user consumption upon project commissioning. Three categories of remote monitoring and
control are distinguished here:
 RMC of the power plant assets

 RMC of the distribution network assets
 RMC of end-user connections (smart-meters)
Following the same categorization as before, minimum remote monitoring requirements per category
are proposed in the following table:
Table 18: Remote monitoring requirements depending on rated peak load of the assets
and distance to the national grid
RATED PEAK LOAD

Distance < 150kVA 150kVA to 5MVA >5MVA
No mini-grid project falls in this space, only stand- No market
alone power plants or kits: opportunities here
< 2.5km  RMC of the power plant asset is
recommended
 RMC of end-user connections is optional
 RMC of power plant mandatory
2.5km to  RMC of power plant
25km  RMC of distribution assets recommended
mandatory
 RMC of end-users recommended
 RMC end-users
>25 km recommended
2. OPERATIONAL STANDARDS
To assess the power quality and service performance of an off-grid customer (and therefore its
associated infrastructure), first the electric service performance should be measured and monitored
appropriately. The amount of data to be collected and how it is to be collected should vary based on
the limitations of operating in rural areas, the associated cost to the mini-grid operator, and the
capacity of the regulator and other stakeholders to process and utilize this information.
As a best practice in the off-grid industry, a contractual relationship is defined with the customers
(whether it’s a mini-grid, a pay as you go (PAYGO) solar kit, or another technological solution),
employing a standard classification of customers, gathering long-term data, and unlocking the
economies of scale through aggregation. Therefore, the proposed operational standards have two
components: customer accountability and off-grid accountability, as represented in the figure below.
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Figure 6: Operational Reporting Framework for EEA, Source:

TTA
2.1. Customer accountability

Customer accountability defines a process to provide customers with trusted information on the level
of service they receive and a clear way to confirm that service. Without the ability to understand
personal energy usage (or in an extreme case, the potential damage of appliances due to poor power
quality), the value and willingness to pay for energy services will be reduced. To help maintain strong
customer support, customers must understand that they are receiving the service that they pay for,
and mechanisms must be in place to verify their power delivery.
2.1.1. Level of service monitoring

The following monitoring capabilities at the customer point of connection are recommended:
a) Ability to check the voltage at service drops

b) Ability record electricity consumption
c) Ability to record hours of service at service drops
These three attributes above will give a sound indication of power quality, energy availability, and
power reliability at the customer point of connection. Note that the level of service verification does
not require that all elements to be measured continuously, although it is important to monitor these
attributes at the customer level at least periodically and maintain a historical record over time. The
use of smart meters facilitates the collection of robust real-time data across some or all these domains,
but may be cost-prohibitive for some off-grid infrastructure.
2.1.2. Service agreement

To ensure a common understanding, a service agreement that defines the expectation
between the consumer and provider of energy services must be in place. The service
agreement must define the terms of service, including the details of the level of service to be delivered,
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tariffs and fees, payment processes, compliance with applicable standards and regulations, customer
responsibilities, customer complaint procedures, and other relevant information.
For full transparency, the service agreement should also specify the type and frequency of service data
that the off-grid operator will provide to the customer, as well as clear processes for addressing
customer concerns if the appropriate service is not provided.
2.2. Off-grid operator accountability

In all mature energy markets, like the short to medium term off-grid market in Ethiopia, an entity is
responsible for ensuring appropriate safety and provision of a specified level of service, even if that
organization is not an active participant in the energy market. This organization could be a state or
federal regulator, or an electrical standards body. Formal and routine reporting also allows regulators,
funders, and other organizations to better understand the near and long-term technical and financial
conditions of businesses in the off-grid sector. A better understanding of the market risks for current
and future investments is documented through three levels of formal performance reporting:
A. Technical reporting
B. Business reporting
C. Other reporting, including social, environmental, and health
The proposed sections and content of off-grid operator reporting should always have an author and a
date, for the purposes of traceability and accountability.
2.2.1. Technical reporting

The main elements of technical reporting for mini-grids include assessment of power quality and
reliability, energy production and consumption, generation sources, and system efficiencies. The goal
of technical reporting is not only to document the performance of the power system in terms of
meeting contractual delivery of energy services, but also to report on the efficiency and reliability of
those services to the relevant parties (i.e., EEA, other government agencies and project investors).
This allows consumers and regulators, as well as the operator, to understand the quality of the service,
the efficiency with which energy is being generated, availed, and sold, and any changes over time.
The selection of metrics or monitoring parameters will determine the choice of monitoring equipment
and the method of data collection (e.g., voltage surveys for small mini-grids, power monitoring for
larger power systems, etc.). Data collection methods also include the triggering thresholds, data
storage and analysis technique employed, and uses for the information collected.
2.2.1.1. Technical Key Performance Indicators (TKPIs)

The following list indicates the main data that should be collected for technical reporting by the
operator of the mini-grid or off-grid infrastructure:
1) Annual electricity production during the calendar year (January 1 to December 31) (kWh)
2) Monthly average load factor (%): average load demand/maximum demand
3) Renewable energy contribution: renewable energy production (kWh)/total energy production
(kWh)
4) Power reliability reported for the period (January 1st to December 31st and/or monthly):
a. At customer location (at least 5% of the total customers randomly chosen, and 1
customer that is the furthest to the power plant)
b. At power plant location (in percentage or in hours)
5) Technical diesel generator (genset) data
a. Total fuel consumption (liters) for the same calendar year (if applicable)
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b. Total hours operated by the genset and operating hours

c. Total liters of oil needed for maintenance
6) Assessment of power quality events – report of any power quality events including the
magnitude, duration, and time of occurrence of the following:
a. Over and under voltage
b. Voltage transient
c. Power interruptions
d. Over and under frequency
e. Phase imbalance
f. Harmonic distortion
2.2.1.2. Technical documentation

In addition to the above-mentioned technical data, other documents should be readily available in
digital and physical copies at any moment from the commissioning point, including:
 Power plant commissioning report

 Distribution network commissioning report
 O&M logs
 Single line diagrams
o Power plant
o Distribution network
 As-built technical specifications
 Data-sheets, warranty certificates, and manuals of the major components
 Documentation on monitoring systems (if applicable)
2.2.2. Commercial reporting

A primary objective of business reporting is to create transparency on the operational soundness,
financial condition, and growth potential of the mini-grid operating entity. This is important for the
regulatory bodies, incentive providers, customers, lenders, and potential public or private investors.
This reporting will help provide the basis for accurate risk assessment that can result in a higher level
of confidence and lower cost of capital.
2.2.2.1. Commercial Key Performance Indicators (CKPIs)

The proposed main elements for business reporting include the following:
1) Customer portfolio information, in the following manner:
a. Total number of customers
b. Number of connections per tier of service
c. Number of connections per sector (residential, commercial, government or
institutional and large consumers);
2) Number of new connected customers for the reported period
a. Total number of new customers
b. Number of new connections per tier of service
c. Number of new connections per sector (residential, commercial, government or
institutional and large consumers);
3) Payment collection rate by tier of service and sector. Payment collection rate defined as the
ratio of number of customers who pay the issued bills/tokens/prepaid fees over total number
of customers being served by the mini-grid;
4) Electrification of the serviced area (%) defined as the total number of connections served by
the operator divided by the total potential number of connections within the boundary of the
off-grid operator;
5) Hardware expenses for equipment replacements, consumables and similar items;
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6) Number of staff employed in the mini-grid and their associated cost;

7) Insurance expenses;
8) Land rentals and way-leaves, if applicable;
9) Transport costs (including fuel);
10) Total operating expenses;
11) Total fuel costs for the reported period;
12) Revenues by sector and by tier of service; and
13) Total and monthly average revenues from power sales.
Reporting can be completed at any interval, although annual reporting is recommended to EEA at a
minimum.12 While the level of business reporting discussed above is desirable and valuable, it is also
expensive. Further, to be fully credible, it must be audited, which adds expense. The value of detailed
reporting must be balanced against costs, to select an appropriate level of tracking and reporting.
2.2.3. Other Key performance Indicators (OKPIs)

2.2.3.1. Social KPIs
Social KPIs give an indication of the social acceptance of the mini-grid by the community. The following
outputs are monitored:
1) Number of formal complaints by the community (individuals and groups);

2) Improved livelihood indicators or feedback (e.g., jobs created since project commissioning,
improved services, hours saved by switching from non-electric tasks to electric, increased
income etc.);
3) New infrastructure after project commissioning; and
4) Visitors to the mini-grid (a separate logbook for visitors is recommended).
2.2.3.2. Health, safety, and environmental KPIs

The recommended KPIs in this section should give an indication of the environmental impact of the
mini-grid, safety, and health risks associated with mini-grids:
1) Health and safety incidents with short descriptions of events and root cause analysis; and
2) Waste management reporting, indicating:
a. Waste generating items descriptions;
b. Amount of the waste generated in correspondent units (liters, kilograms, or units);
c. Location where the waste has been placed or disposed; and
d. Opportunities for recycling this waste.
2.2.4. Monitoring progress

Operator accountability will only be achieved if a process is put in place that holds utilities responsible
for the contractual commitments made to their customers, investors, regulators, and other relevant
stakeholders. This, in turn, will require defined procedures for the monitoring, reporting, and
verification of the technical and business elements discussed in the preceding sections. The monitoring
process can be described in three stages:
12After the presentation on the Draft Technical Standards and Green Mini-grid Feasibility Study Guidelines and EEA feedback on
the document held through Zoom platform on the 08th of August 2020. The consultant and EEA agreed that annual reporting
would be an appropriate frequency given EEA’s capacity to process this information.
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Summary
Data Data
Information:
Acquisition Aggregation
KPIs
Figure 7: Data Monitoring Stages

1. The first stage in the process is data acquisition. Acquiring the data for an off-grid asset will
likely be a combination of hand-recording specific values and automated data acquisition
systems.
2. Data aggregation is the second stage of the process. Based on informational needs, the type
of data collection, and data delivery options, raw plant data collected in the first stage will be
analyzed and summarized either locally or at a corporate headquarters.
3. Summary information about the operation of the power system can then be communicated
to project stakeholders at specific intervals. Since different stakeholders require different
information, data systems can be created for larger programs to ensure that the specific
information is transferred securely to each of the different project stakeholders in a similar
(and thus more useful) manner.
2.2.4.1. On-site monitoring

The onsite monitoring method uses the off-grid operator staff to evaluate the operation of the site,
including by:
 Ensuring overall correct functioning of the asset;

 Checking for the presence of any malfunction in any component;
 Measuring equipment to detect faults;
 Interacting with the customers concerning supply and service satisfaction;
 Interacting with the community in regards with the social impact of the mini-grids; and
 Checking all occupational, health, and safety standards.
On-site monitoring involves reporting any information gathered during staff operations and
maintenance of the mini-grid. This information would be recorded in different formats which should
be stored in a proper filing system and used to produce reports required for compliance or decision-
making purposes.
2.2.4.2. Remote monitoring

In a remote monitoring method, a cellular telecommunication network is used to establish connection
between the operator of the plant and the assets. The owner/operator can record the data such as
the performance of the PV array and temperature, battery voltage level and state of charge, the total
energy produced, and other elements at predetermined times and on a regular basis.
2.2.4.3. Verification
Independent verification is a critical part of any accountability framework. Verification processes
should cover the entire project timeline, incorporating a formal commissioning of the power assets,
commissioning of any data collection processes, ongoing assessment of asset performance, and general
reporting.
The intended verification process should be developed in the early stages of the project so that the
requirements for data acquisition, reporting, and verification are identified and the associated costs
are considered in the development of the project.
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2.2.4.4. Restoration times

Restoration times are defined as the number of hours the electricity services is restored from the
moment it was interrupted, either by a planned or unplanned event. When defining restoration times
to mini-grid operators and off-grid operators, it is important to benchmark the below proposed values
with the current restoration times of the national utility (EEU) in rural areas, as the required
restoration times should not be stricter than the current benchmark of the utility in rural areas. This
will ensure that costly and difficult to achieve requirements are not imposed.
Table 19: Recommended restoration times by Power Reliability Category (Source:

TTA)
CATEGORY POWER RELIABILITY VALUES13 PROPOSED

RESTORATION TIMES
Both planned and unplanned interruptions ≥ 90% 7 days maximum from
PReI
should ensure a 90% reliability supply any planned and unplanned
throughout a year interruption
PReII
throughout a year interruption
PReIII
throughout a year. interruption
13
The defined percentages are calculated on yearly basis, adding the number of hours the service has not been available to
the end-user (planned and unplanned) and dividing them to the equivalent number of hours the service should have been
available as per the Tier availability (Tier 1 to Tier 5).
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2.3. Key Performance Indicators Summary

Table 20: Off-Grid Key Performance Indicators (KPIs) Summary
TKPIs CKPIs OKPIs
1 Annual electricity production Customer Portfolio information: Number of formal

during the calendar year complaints by the
 Total number of customers community
 No. of connections per tier of
service
 No. of connections per sector
2 Monthly average load factor Number of new connected customers: Improved livelihood
(%); average load indicators or feedback
demand/maximum demand  Total number of new customers
 New customers per tier of service
 New customers per sector
3 Renewable energy Payment collection rate by tier of New infrastructure after
contribution service and sector project commissioning
4 Power reliability: Electrification of the serviced area Visitors to the

infrastructure
 At customer location
 At power plant location
5 Technical genset data: Hardware expenses for equipment Health and safety incidents
replacements, consumables and similar
 Total fuel consumption
 Total hours operated by
the genset
 Total litres of oil
6 Assessment of power quality Number of staff employed in the mini- Waste management report
events grid and their associated cost
7 Insurance expenses
8 Land rentals and wayleaves
9 Transport costs (including fuel)
10 Total operating expenses
11 Total fuel costs for the reported
period
12 Revenues by sector and tier of service
13 Total and monthly average revenues
from power sales
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PART 2: GREEN MINI-GRID FEASIBILITY STUDY GUIDELINES
Introduction
1.1 Background and rationale

Mini-grid companies and developers in sub-Saharan Africa come from a range of different market
backgrounds (PV utility scale, SHS, general electrical works, etc.), and some of them might build their
first mini-grid in Ethiopia. They often possess insufficient practical and theoretical experience in the
mini-grid field, and they may lack an understanding of the common challenges and obstacles of
developing this infrastructure on the ground.
Within the context of the new NEP14, which aims to achieve 35% off grid access by 2025 and universal
access across the country by 2030, mini-grids should play an important role in reaching remote rural
communities. A rise in private sector involvement is expected and required to develop such
infrastructures. As such, feasibilities studies will be of utmost importance to define where mini-grids
will be the most technologically and economically suitable. Ultimately a feasibility study should
determine if a mini-grid is a suitable technological solution for a given site(s) and flag any
important risks that may undermine the success and sustainability of the project.
This guide lays out the minimum steps, industry best practices, and lessons learned from previous
experiences for the mini-grid developers to carry out detailed, technically-sound GMG feasibility
studies. This guide also aims to assist the EEA in understanding the steps that a GMG feasibility study
should cover. This guideline can be used as a checklist and a reference as it reviews the mini-grid
developers’ feasibility studies as part of the licensing application.
In brief, this guide aims to support mini-grid developers to:
- Develop GMG detailed feasibility studies;

- Design technically sound solar PV mini-grids; and
- Understand key deliverables as part of the technical feasibility study.
The inputs, tools, and recommendations cited in this guide are based on the current regulatory and
funding frameworks in the region, the consultant experience, and relevant inputs and insights raised
by other local and international companies and public agencies.
1.2 Intended audience

These guidelines are targeted at the EEA and other relevant public institutions in Ethiopia (i.e., MoWIE,
EEU, etc.) as well as to international and local developers and investors already present or interested
in participating in GMG market development. The guidelines lay forth clear information, tools, and
streamlined processes to successfully develop detailed feasibility studies of GMGs.
1.3 What is a Detailed Feasibility Study (DFS)?

A GMG DFS is a comprehensive and exhaustive study based on on-the-ground data and a detailed
technical and economic/financial analysis. It presents enough information to determine whether the
project should be advanced to implementation. Such information should include fundraising plans,
procurement goals, installation planning, commissioning details, and operation phase elements.
14Ministryof Water, Irrigation, and Electricity, National Electrification Program 2.0, 2019. https://www.powermag.com/wp-
content/uploads/2020/08/ethiopia-national-electrification-program.pdf
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The DFS aims to evaluate the viability of the project’s technical, social, environmental, and
financial terms through an assessment of the potential energy demand. The energy demand is
determined through a socio-economic study of the community. This study includes an on-site survey
investigating the demographics, energy needs, and the communities’ willingness and ability to pay. From
the collected data and other relevant information available, a load profile is built and a preliminary
sizing of the associated mini-grid can be performed. Costs are also estimated and the final key
indicators estimating the viability of the projects are established.
2 Steps to a Detailed Feasibility Study
2.1 Site Assessment
2.1.1 Introduction to site assessment

An initial set of data is required to perform a first baseline assessment of the communities targeted to
allow planning of the survey. This data should include, at minimum:
 Location of the site (district, province, region and most importantly the GPS coordinates);
 Population and number of households; and
 Current electrification status.
This data can usually be collected from governmental organizations (such as national institutions of
statistics) or from previous studies realized as part of other development projects. The reliability of
such data can vary widely depending on the area concerned; it is therefore essential to check them
against the information collected from satellite imagery.
Assessments on each selected site will then be performed to obtain the socio-demographic
characteristics of the following:
 Population and number of households;

 Economic and productive activities practiced by the population;
 Current electrification status;
 Willingness and ability to pay of potential end-users;
 Existing governance structures in the community or area (such as community associations or
water community committees); and
 Households, businesses, and institutions demand assessment.
These characteristics will form the backbone of the DFS, as they will be used to determine the energy
demand per site and the associated cost estimations of the mini-grid.
2.1.2 Surveys
This chapter describes the surveys that a developer must carry out for the site characterization and
needs assessment of the end-users. At an initial stage of the project, at least two different types of
surveys can be defined:
 The village-level survey; and
 The end-user surveys.
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Ahead of a survey, the appropriate sample size needs to be defined using the data initially obtained on
the population of each village.15 The tolerable margin of error and the budget allocated for the survey
will be key factors to determine the sample size.
2.1.2.1 Socio-demographic characteristics of target village

Surveys assist in understanding the characteristics of both village and regional dynamics. A village
survey should at minimum contain the elements shown in the table below. These characteristics are
often identified through focus group discussion, including with the village chief or village elders, his
council, and other community-based organizations (such as women’s groups, cooperatives, water
associations, etc.) While determining these characteristics, it is recommended that developers take
photographs of the community, the identified land for power plants, and important loads (e.g., grain
mills) to determine productive uses of electricity (PUE). Coordinates of potential clients should also
be noted.
Table 21: Main information to be gathered through a village survey
- State of the access road to the village
Infrastructure
- Distance from the national grid

- GSM network coverage
- Land availability for power plant(s) and characteristics (soil type, ownership, distance
from center, inclination, existence of trees and other obstacles)
- Water infrastructure (existing water supply points)
- Administrative and political structure of the village
Organization
- Associations (e.g. women’s, carpenters, etc.)

- Other similar community projects
- Committees that could participate in the project (e.g., tariff committees that can
negotiate with project developer and represent community clients)
- Savings groups
- Main source of income for the village (e.g., agriculture, fishing, livestock, small commerce,
public sector, etc.)
Possible electricity improvements for marginalized peoples, including women, the elderly,
Social
-
the disabled, children and youth, etc.
- Main obstacles for increasing household income (e.g., farmers, fishermen, entrepreneurs)
- Existing conflict resolution mechanisms in the village (rule of law, others)
Income (minimum, maximum and average)

Financial
-
- Sources of income (e.g., salaries, remittances, etc.)
- Seasonality of income
- Population, expected growth rate

Demographics
- Number of households and annual growth

- Distribution between men and women
- Share of female heads of households
- Share of elderly (> 60 years)
- Educational demographics (primary, high school, university, etc.)
15 Several tools can be found online such as the Sample Size Calculator (https://www.surveysystem.com).
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Residential:
- Number of households with fuel generator; what the generator powers (lighting/
productive use/ TV/ fridge/ others)
- Number of households with solar panel; what the solar panel powers (lighting/
productive use/ TV/ fridge/ others)
Commercial and productive uses:
Energy needs
- Number of existing businesses (e.g., shops, grain mills, workshops, etc.)

- New businesses likely to appear after the GMG arrives
Public institutions:
- Number of schools in the village, distance from power plants
- Community water uses (public health, labor, power, etc.)
- Number of health centers or hospitals
- Number of places of worship
- Number of local administrative buildings
The demographics data needs to be crosschecked with the information initially collected for site
selection. The coherence of these numbers is important to obtain a realistic evaluation of the energy
demand.
End-user survey
The end-user survey aims to assess the socio-economic status of the potential end-users, their energy
needs, and willingness to connect to the GMG and pay for electricity services.
The end-user survey includes a series of questions for the potential residential, commercial/ industrial,
and institutional clients of the mini-grid. This survey is intended to collect information on the
purchasing power, energy needs, current energy uses, expenses, and other pertinent concerns of end-
users. The questions should cover the following topics:
- End-user’s occupation;
- Monthly income and seasonality;
- Disposable income for electricity;
- Current energy uses and expenses (e.g., kerosene lamps, torches, rechargeable batteries, private
or shared fuel generator, phone charging, etc.);
- Willingness to support the project (by providing workforce, materials, etc.); and
- Willingness to pay for electricity tiers and services.
For the end-user survey, the project developer will need to employ a few enumerators to gather a
representative sample from the target communities. In addition to the previous data gathering, the
developer will also need to calculate willingness to pay from the potential household clients.
Prompts for the willingness to pay survey must be carefully designed to capture realistic information.
Anonymity in the survey should be considered by the developer. It is recommended that an
estimation of the cost of electricity service is prepared beforehand and potential clients are asked if
they would be willing to meet that figure, and, if not, adjust the cost or the service level to be provided
based on the survey outcome. Alternatively, the estimation can be updated by analyzing the percentage
of monthly household income that would be required to pay for electricity.
For clients other than households, the developer should gather information on the following:
 For commercial and productive uses:
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- Type (e.g., shops, grain mills, workshops, etc.);

- Running times and possible shifts;
- Current energy sources and expenses;
- Equipment compatibility of fuel-based machines; and
- Cost and willingness to pay for retrofitting to connect (if needed).
 Public institutions:
- Type (schools, health centers, hospitals, community buildings, etc.);
- Current energy sources and expenses; and
- Sources of funding to pay for the operator.
The following table shows an example of different types of businesses and institutions to consider
when gathering the initial data.
Table 22: Sample type and number of businesses and institutions table, survey demand
Type of Businesses No. of Businesses Type of Institutions No. of Institutions
Car/motorbike repair Church/Mosque/Religious
shop centers
Bicycle repair shop Primary school
Market Secondary school
Small Shops or Kiosks Health center
Salons/Barbers Police Station
Grain Mills Other
Carpentry
The developer will assess the current use of energy employed by existing businesses and public
institutions in the community. This may come in the shape of diesel generators, lighting (e.g., clinics
may have kerosene or traditional lighting), or other sources. Monthly expenditure will also be
registered. For agricultural-related businesses or activities, which are often seasonally based, data
gathering will be done based on seasons or services (e.g., agricultural value chains such as cooling or
drying).
2.2 Geospatial analysis

Geospatial analysis using Geographic Information System (GIS) tools is useful to identify, assess, and
select ideal mini-grid sites.
Geospatial data should be collected for the following data categories:
1. Population and localities: Distribution of the human population and its density is one of
the main drivers of distribution cost. The High-Resolution Settlement Layer (HRSL) dataset
provides estimates of human population distribution at a resolution of one arc-second
(approximately 30m).16
2. Electrical distribution network: This should be provided in the National Rural
Electrification Master Plan. Third party data and satellite images showing brightly lit areas at
night (which may indicate existing electrification) might be used if no official data is available.
16 Produced by the Facebook Connectivity Lab in collaboration with Columbia University, the dataset can be downloaded
from the CIESIN website: https://www.ciesin.columbia.edu/data/hrsl/.
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3. Solar resource: There are several databases available (SolarGIS, NASA, NREL, etc.)17
4. Security: Collect information on the location and severity of conflicts in the envisaged area
with descriptions of the groups involved and the recommended level of security. This data is
typically supplied by international security agencies and foreign affairs offices.18
5. Accessibility: This is critical for localization, logistics, and analysis, like measuring distance to
the grid. The dataset provided by OpenStreetMap (OSM) on road data is among the most
used accessibility datasets.19
6. Phone Coverage: Maps the availability of cellular data and mobile money networks for
payments. If the area does not have access to a mobile network, a satellite connection point
must be integrated into plans. Once the geospatial data has been collected, it can be integrated
into the GIS tool by creating layers for further analysis. Localities can be filtered based on
population and distance from the national grid using the above-mentioned categories. Once
these layers are filtered, the aerial images of each locality can be visually inspected and analyzed
based on different parameters:
1. Community size;
2. Population density; and
3. Other factors, such as:
a. Community access to tarmac road;
b. Permanent, semi-permanent and temporary structures;
c. Presence of institutions (schools, health centers, and others);
d. Agricultural activity around the community; and
e. Presence of lakes, rivers, or streams near the community.
These parameters will help gather initial relevant demand data, and to correlate that data with the
information gathered through surveys and previous assessments.
2.3 Recommendations
 Preliminary GIS analysis must be conducted prior to on-the-ground data gathering. It is
extremely important to correlate the information gathered under both analyses.
 The analysis of current energy consumption and expenditure (correlated to the ability to pay
of the population) is critical, as this will provide insight into the realistic current capacity to
pay of different clients. However, the willingness to pay analysis will also provide additional
information and understanding for future demand growth and socio-economic trends within
the community.
 Identifying PUE is another key factor. Anchor clients are financially the most attractive ones
and will help secure financial viability.
 This stage will build the bedrock of the GMG; therefore, gathering enough and reliable
information will require having a significant sample of surveyed clients.
17 One of the most used is the one provided by SolarGIS: https://solargis.com/.

18 See guidance from the United Kingdom: https://www.gov.uk/foreign-travel-advice and France:
https://www.diplomatie.gouv.fr/fr/conseils-aux-voyageurs/conseils-par-pays-destination/
19 OpenStreetMaps can be accessed via: https://www.openstreetmap.org/
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2.4 Expected products for the site assessment in a DFS

The minimum expected products to be delivered by the developer for the site assessment of a DFS
are:
 Exact location of the community;
 Good quality GIS map of the community with clients geo-registered on it;
 Basic socio-demographic characteristic table; and
 Energy consumption and expenditure table.
3 Electricity Demand
3.1 Methodology: Tiered energy packages

A GMG’s capacity to power commercial and productive uses (and consequently to enable economic
growth and increase demand) is vital for its sustainability as a financial investment. In contrast to typical
SHS, which are more appropriate for small residential applications, mini-grids can provide energy to
large residential consumers and to productive users.20
Other than MTF service levels, other tier-based concepts exist in the GMG market, such as the
demand assessment methodology, based on the Energy Daily Allowance (EDA)21. EDAs are
standardized energy tiers or packages assigned to the different levels of users. They are all multiples
of the basic EDA (275 Wh/day), which is the required daily energy for minimum electricity use for
lights, phone charging, and other low-consumption appliances. Each tier can supply a specific type of
service during a day, as shown in the following table.
Table 23: Indicated service offered by each EDA
Tier Indicative service Estimated EDA

(Wh/day)
Tier 1 Lights, phone, radio 275
Tier 2 Lights, phones, fan, radio, TV, other small appliances 550
Tier 3 Lights, phones, fans, TV, other small appliances, fridge 2,200
Tier 4 Lights, phones, fans, TV, other small appliances, 3,850

freezer, and productive use appliance
Each type of connection is classified under different tiers according to the estimated energy use, and
an EDA is allocated to each tier. The process for tier classification and EDA allocation differs slightly
for household, commercial/productive, and institutional connections.
The use of meters with daily energy limitation ensures that the client’s individual consumption does
not exceed the assigned EDA. This way, the power plant will never exceed its capacity, which ensures
reliable electricity service and makes the mini-grid operator’s financial and business planning more
predictable.
20 National Renewable Energy Laboratory, Productive Use of Energy in African Micro-Grids: Technical and Business Considerations.
21 EDA is a concept developed by TTA and widely used in many GMG worldwide.
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3.2 Importance of demand estimates

The first step of the feasibility study is to gather data for the development of the project, with the aim
of selecting specific sites for GMGs, estimate electricity demand, and understand the economic and
social aspects of the target communities.
Electricity demand estimates are a key factor in GMG financial sustainability because it directly impacts
the size and design of the generation unit and distribution line, and therefore the cost of the initial
CAPEX. An analysis of existing and foreseeable appliances, current consumption, forecasted
consumption when the GMG arrives, characteristics, and alternatives must be estimated and evaluated.
Part of this complexity and sizing challenge can be attributed to the lack of data regarding load profiles
from productive use of energy in operating systems. While residential customers make up most of the
connections, commercial and productive local businesses have much higher electricity consumption
per connection and are more adaptable to the solar generation peak during daylight working hours.
Figure 8: Productive use load profiles (Source: Williams et al. 2018)
Actual load data of operating mini-grids has been shown to be a better predictor of future consumption
than surveys (Blodgett et al. 2017). When designing mini-grids to incorporate productive use loads, it
is worthwhile to compare survey data with this operational data, aiming to adjust or confirm estimates.
Additionally, it is valuable to review these load profiles and determine which types of business are best
suited for operation at the time the loads occur. Finally, this data can be used to better understand
what types of productive uses and businesses are currently operating in rural villages and how and
when are they operated.
Within each product group, there is a diverse range of technologies which have different system size
requirements.22 Product specifications of typical productive uses are shown in Figure 9.
22World Bank Group, The Market Opportunity for Productive Use Leveraging Solar Energy (PULSE) in Sub-Saharan Africa,
September 23, 2019. https://www.lightingglobal.org/resource/pulse-market-opportunity/
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Figure 9: Product specifications of typical productive uses (Source: Lighting Global

2019)
The estimation of the electricity generation provided by the mini-grid throughout its lifecycle is a
critical factor for the correct power plant sizing. An incorrect estimate of the energy required at
deployment, and over time, will cause non-optimum sizing of components, which will lead to an
inadequate power plant for the service requirements, financial inutility, and eventually GMG failure.
Additionally, generation capacity shortages will keep the service from meeting clients’ expectations,
cause frequent service outages, and reduce the lifecycle of batteries. This will affect the confidence the
clients in the infrastructure, and consequently reduce their willingness to pay. On the contrary, an
oversizing of the generation plant will increase installation costs which can translate into higher energy
prices for consumers and jeopardize the financial sustainability of the investment.
CAPEX is one of the primary obstacles to deploying GMGs. There are several ways to reduce CAPEX,
including:
- Diversification and appropriate choice of energy resources;

- Provision of efficient appliances;
- Adaptation of the consumption curve to the production curve through demand-side
management (DSM) techniques; and
- Reactive power compensation.
The estimation of demand will be based on the application of these criteria and on energy efficiency
measures—both from the consumer's point of view and from the design point of view.
It may occur that a significant amount of electricity demand grows over time, either because some
potential clients are not connected from the beginning, or because demand grows after time. For this
reason, when sizing GMG´s components, demand must be considered based on future growth and a
connectivity rate, or on progressive connectivity until a certain year of the project.
As a general recommendation, sizing for estimated demand and connections in years 3-5 will result in
an MGM with sufficient, but reasonable, overcapacity that leaves space to ensure that short-term
demand growth can be served.
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3.3 Current electricity demand

Following the data collection through the on-site survey, the developer will need to establish the level
of household and anchor clients demand per energy tier. For this, Error! Reference source not
found. and Error! Reference source not found. should be employed, respectively.
Error! Reference source not found.4 shows the estimated demand (Wh/day) per user in the
community based on the identified tiers by the mini-grid developer, indicating the user´s tier level and
the level of GMG sharing (as some users may prefer to use other generation equipment such as gen-
sets or SHS).
Table 24: Sample household demand per tier mini-grid connections table
Tier Estimated demand (Wh/day) Share for mini-grid
Basic
Medium
High
Error! Reference source not found.5 is an example showing existing users in the community and
their estimated daily demand from the mini-grid.
Table 25: Sample anchor loads information table

Anchor load Description and Estimated daily demand from
comments the mini-grid (Wh/day)
Police Station
Grain mill (existing)
Grain mill
Retail shop
Primary School
Secondary School
Health Centre
Welding Workshop
Car/Motorcycle Repair
Retail shop
3.4 Demand side management (DSM)

DSM for mini-grids involves adjusting electricity demand to suit generation patterns of renewable
energy technologies. In the case of GMG, the goal of DSM is to shift demand towards daytime hours
when solar energy is generated, minimizing demand at night, when electricity is supplied by the
batteries to prolong battery lifecycles. This can be done either manually or automatically, through
advanced or smart meters, by giving financial incentives, or by offering additional energy and power
flexibility.
3.5 Demand stimulation

Stimulating local demand for electricity is a critical factor for GMGs to grow their profitability over
their lifetime. Anchor productive uses of energy are critical for stimulating local demand.
Figure 10 compares the initial CAPEX requirements and financial performance of several different
productive uses. It shows which of the productive use opportunities considered have high investment
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requirements and the likely cost of promoting different productive uses through the provision of
equipment to business owners. The figure also shows the electricity demand for the different
equipment, which helps inform the anticipated installed capacity of the micro-grid. For entrepreneurs,
the figure shows the expected investment cost for the different productive uses compared to the
anticipated monthly sales and net profit. The figure will increase awareness among entrepreneurs of
the likely range of power consumption for different appliances, which allows them to consider how to
consume electricity more efficiently.
Figure 10: Investment requirements and financial performance of different productive

uses (Source E4I)
In Nigeria, Green Village Electricity (GVE) has experimented with financing productive use equipment
such as grinder motors. GVE has been able to increase utilization to 74% of peak capacity for its mini-
grid by providing loans for soft-start electric motors, and the company expects further adoption will
raise utilization to 90%.23
3.6 Consolidation of inputs into the studies

To choose the desired level of consumption for future clients, developers must first approximate their
associated fee levels so that the consumption level is in agreement not only with the level of services
required, but also with clients’ ability and willingness to pay. Previous experiences in different regions
in Sub-Saharan Africa can be a good starting point.24
As mentioned previously, using meters with daily energy limitations (based on the tier of the client)
makes it easier to estimate the rated peak load for each planned connection. To validate the data, it
should be compared to consumption data for other areas with access to electricity that share similar
socio-economic characteristics. Existing GMGs, public/private developers, or mini-grid industrial
associations in the region can sometimes provide valuable data. However, when comparing with data
from another country, one must assess whether the regulatory framework or funding-subsidy
structure is comparable, and whether differences may affect the consumption data.
23Rocky Mountain Institute, Mini-grids in the money: Six ways to reduce mini-grid cost by 60% for rural electrification, 2018.
https://rmi.org/insight/minigrids-money/
24 For more details, please refer to ECREEE Guide Micro-réseaux photovoltaïques hybrides “Annexe 2 : Exemple de calcul
des coûts et revenus d’exploitation”.
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Using standard tools and processes for data acquisition, storage, and analysis is recommended to help
minimize human error. As an example, KoBoToolbox is an existing suite of tools for field data
collection in challenging environments.25
Feedback from surveys is used to understand what services the local population requires. Results
commonly show that lighting is the priority service, followed by phone charging and entertainment
activities (such as TV or radio) for residential clients. Surveys also identify existing types of productive
use. GMG business models and financial sustainability rely heavily on energy demand originating from
potential anchor clients based on their productive and commercial activities. GMGs with only
residential clients are often not profitable. For this reason, GMGs that serve strictly residential clients
are not recommended if utilizing a market-based approach.
Each tier is associated with an average daily electricity consumption as presented above. The
aggregation of number of clients per tier, individual load profiles and typology of clients (productive
uses versus residential), and an average consumption per type of clients is used to define or build the
village load curve and main input for sizing of the GMG. An example of a village load curve is shown
in Figure 11.
Daily load profile

40,000
35,000
Energy demand (Wh/h)
30,000
25,000
20,000
15,000
10,000
5,000
0
0:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
HH-Tier1 HH-Tier2 HH-Tier3 Shops Carpenter Street lights
Figure 11: Typical daily load profile of a village (example built by TTA)
Once the community or village load profile is built for year 1, the developer can forecast the load
profile into the future, typically for year 4. In the Ethiopian context, following the guidelines provided
in the ENEDC, the load forecast should be projected to year 5.
3.7 Recommendations
 As data gathering and demand analysis are critical for mini-grid financial sustainability, it is
recommended that sufficient resources are mobilized to create a reliable community load
profile.
 The first GMGs are often used to test the approach and gather lessons learned. Subsequent
projects can employ a clustering approach for projects in the same region to scale up the
business and bring down investment and operational costs.
25 For more on KoBoToolbox, refer to: https://www.kobotoolbox.org/.
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 DSM and promoting energy efficiency are critical approaches to drive costs down and improve
the final sizing of the plants.
3.8 Expected products for the DFS Electricity Demand

The minimum expected products to be delivered by the developer for the DFS are:
 Demand analysis per clients, including tiers; and

 Daily load profile (24-hours) of the community or intended service area
4 Mini-grid components and sizing

Sizing refers to selecting the appropriate capacity of the PV generator and batteries, as well as the
necessary power of the battery inverter and (backup) genset (if one exists). After the size of the main
components is decided, a detailed design will determine the type and sizes of solar inverters or charge
controllers, the arrays of PV modules, the connections between battery cells and banks, and other
elements of the project. The length and cross section of the AC and DC cables connecting the modules
and the distribution line can also be estimated.
For component sizing, existing techno-economic tools can be utilized in analysis. However, prior to
the employment of specific software, it is first recommended that developers understand all the mini-
grid components and their characteristics as well as the way these components interact. Software
employed to calculate the proper sizing of a GMG requires a deep understanding of the variables, the
behavior of the components, and the relationships between the two. The next sections describe the
main GMG components and the usage of the software. IEC 62257 series software is highly
recommended as it is the backbone of rural mini-grids.
4.1 Generation
A solar PV mini-grid generation plant is made up of the following main components, described in the
sections below.
DC-COUPLING AC-COUPLING MIXED DC-AC COUPLING
Figure 12: AC-coupled, DC-coupled and hybrid AC/DC-coupled solar PV mini-grids
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4.1.1 PV support structure

The most common PV support structures are based on standard aluminum or galvanized iron profiles,
which are either fixed to the ground, a roof, or a canopy. PV canopies are more expensive but have
several advantages compared to ground-mounted structures: The canopy can provide shelter to the
batteries and the power electronics improving the security of the assets. The shadowing of the PV
modules can also help to reduce the temperature of the assets, increasing the lifetime of the
components while protecting the PV panels from theft.
It is important that metallic structures are well-designed, specifically suited to solar PV applications,
and appropriate for the environmental conditions of the site (e.g., wind and humidity).
4.1.2 PV array
The PV generator is composed of solar PV panels, including photovoltaic cells transforming solar
radiation into electrical energy of DC. When designing the photovoltaic field, the following parameters
must be considered:
 Orientation (depending on the latitude and the sizing month): The PV panels generate
maximum yield when facing south in the Northern hemisphere or facing north in the Southern
hemisphere. It is also possible that an East-West double-tilt mounting structure for high-power
density design panels can be an option for flat roofs or roofs with low slopes.
 Tilting of the panels: Depending on the angle of the PV modules and the season of the year,
the modules will produce a different yield. For the ECOWAS and Mauritania sub-region, the
optimum tilt is below 20º.
 Absence of shadows.
It is advisable to install active or passive anti-theft and anti-vandalism systems for security reasons. This
measure, coupled with community involvement and canopy installations as close as possible to the
center of the village are usually the most effective ways to secure PV panels in a GMG. Conversely,
fenced ground mounted PV fields are more accessible for maintenance.
Based on this final demand of the mini-grid, the performance ratio of the plant (PR) and the peak sun
hours (PSH) of the region, the optimum PV capacity to be installed is calculated by the formula:
4.1.3 PV inverter (AC-coupled) / Charge Controllers (DC-coupled)

The PV inverters are responsible for converting the DC current produced by the PV panels into the
AC current, for its injection into the AC network of the grid (generated by the battery inverter).
In the case of a DC-coupled mini-grid, the conversion is performed by a Solar Charge Controller,
responsible for controlling and optimizing the battery charge from the PV modules.
4.1.4 Battery inverter / chargers

The battery inverter converts the electrical energy produced by the photovoltaic panels and stored in
the batteries in DC into alternating current of a quality equivalent to that of the national grid
(400/230/120 V and 50-60 Hz depending on the country).
Generally, the inverters will be bidirectional, so that they can also convert the AC generation (from
the AC coupled solar PV or a renewable source of AC injection, the genset or the national grid) to
DC so that it is stored in the battery.
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The main parameters for the selection of the battery inverter are the nominal power and the peak
power. Special attention must be paid to these parameters since the efficiency of the inverters is low
when they work in low part loads.
4.1.5 Batteries
The battery is a rechargeable electrochemical cell, capable of storing electrical energy through a
reversible chemical transformation. Thanks to the battery, a photovoltaic plant will have the autonomy
to satisfy consumption demands at any time, regardless of the solar generation.
The most used batteries for GMGs are lead-acid stationary ones: they are suitable for slow and deep
charges / discharges and have a large cycling capacity. Among these, the most common are the OPzS
(O: stationary, Pz: armored tubular plate, S: liquid electrolyte, with positive tubular plate, open and
liquid electrolyte) and OPzV (O: stationary, Pz: armored tubular plate, V: gel electrolyte with positive
tubular plate, gelled, closed and maintenance-free electrolyte). In general, OPzS batteries will be used
because of their lower cost, their greater number of life cycles and better behavior at high
temperatures. If periodic maintenance—like refilling of electrolyte—cannot be easily ensured, OPzV
batteries are preferable.
Sizing of the batteries is the estimation of the necessary capacity to be installed that will ensure the
desired autonomy of the plant. For this calculation, the inputs needed are the depth of discharge
(DOD) and the battery voltage (V). Bearing all the above in mind, the capacity of the batteries is given
by the formula:
Figure 13 presents a summary of the pros and cons in terms of performance characteristics of the
four main battery technologies commonly used in off-grid projects, namely lead-acid, lithium-based,
nickel-based, and flow batteries.
Lead-acid batteries are the most mature and tested technology for off-grid projects but have lower
efficiency in comparison to lithium-ion technology, which have an excellent energy efficiency rate even
when discharged completely, as well as a higher energy density. Nickel-based batteries perform better
in extreme temperatures, while the flow batteries have excellent cycle performance.
Battery Pros Cons

Low energy efficiency - Poor or
Lead-acid High rate discharge performance
Medium cycling performance
Long cycle life expectancy even with 100 % One poor cell can reduce drastically
Lithium-ion
DOD with excellent energy efficiency rate the cycling performance
High rate discharge performance - Extreme

Charge mode must be well managed.
Nickel-metal temperature - 45°C - + 80 °C with good
Medium energy efficiency
cycle performance. Accept deep discharge
Excellent cycle performance with long term

Flow Battery Low energy efficiency - Poor
discharge - Energy storage can be easily
(or REDOX) performance at high discharge rate
adjusted
Figure 13: Performance characteristics of battery chemistries (source: Claude

Campion, 3C Projects, France)
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Figure 14 shows the main battery chemistries used in GMGs (lithium-based, lead-based and nickel-
based) and selection criteria depending on the existence or not of a backup genset and the
temperature of the battery room.
Figure 14: Battery Selection for GMGs (source: Claude Campion, 3C Projects, France)
OPzS
The main advantages of OPzS batteries are lower price, useful life, good performance at high
temperatures, and the possibility of equalization charges, which allow the balancing of the series of
elements of the battery.
However, OPzS require maintenance to replenish electrolytes, emit flammable gases (hydrogen in
small quantities) which must be exhausted, and are delicate and subject to greater restrictions in
transportation (since the acid must be transported separately).
OPzV
The primary advantages of OPzV batteries are lower maintenance requirements and no restrictions
for shipping. On the other hand, their price is higher than OPzS (around 25%) and they offer a shorter
life cycle.
In general, it is recommended to opt for batteries of the OPzS type except when basic maintenance
cannot be guaranteed locally (due to lack of trained technical personnel, isolation of the site, difficulty
in obtaining distilled water, etc.), or when the security conditions do not allow the installation of
flooded batteries; in this case it is advisable to opt for a gel battery type like OPzV.
Lithium-based batteries
Lithium-based batteries represent a good economic and technical alternative to lead-acid ones and are
gaining more market share due to their decrease in cost. The most common technologies for stand-
alone solar applications combine lithium with nickel-manganese-cobalt (NMC) or are lithium iron
phosphate (LFP).
Advantages include higher energy density, longer life, and allow for higher current discharges, over
lead-acid batteries.
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Drawbacks include larger up-front investment, requirement of more sophisticated control electronics,
and lithium-based batteries usually cannot be recycled as well as lead-acid batteries.
4.1.6 Backup genset

The genset can have different functions depending on how the installation is designed:
 Auxiliary (sporadic use): In case the solar resource is not sufficient, or any part of the plant
breaks down. Also enables equalization and maintenance charges for the lead-acid batteries.
 Peak hours (daily use): To cover the energy or power demand gap for a few hours daily.
The power of the genset is normally expressed in kVA (apparent power).
Contrary to photovoltaic production, one of the great advantages of the genset is that their use (and
therefore their production of electricity) can be planned. This flexibility makes them a great
complement to the solar plant.
Current photovoltaic inverters generally include synchronization mechanisms with gensets which
greatly facilitate their interconnection and integration into the management strategy of the GMGs.
This automatic start/stop feature is recommended for any genset meant to be integrated in the GMGs.
For the usual power range in GMGs, diesel engines are usually used with 1,500 rpm equipped with a
single-phase or three-phase alternator depending on the configuration chosen for the GMGs.
In general, the genset performs one or more of the following functions:

● Avoids oversizing the photovoltaic plant (leading to CAPEX reduction) to respond reliably to
the most critical periods of the year (low solar radiation);
● Replaces battery inverters in the event of failure or shutdown due to maintenance, ensuring
continuous electrical service;
● Periodically completes full charges and equalization of the battery to keep it balanced and
extend its life;
● Performs an additional charge of the battery when the state of charge is too low due to
adverse weather conditions; and
● Covers peak power during daylight or nighttime hours.
The choice of the nominal power of the genset will be made considering its functions and the intended
operating regime.
In general, the genset must be able to guarantee a continuous active power at least equal to the total
power of the inverters (so that it can replace them if needed) and also guarantee the peak power
demand.
4.1.7 Protection of persons and equipment against electrical hazards

The calculation and design of electrical protections, earth connections, network distribution lines,
subscriber connections, internal installations in homes and businesses, productive uses, and public
buildings and their protections are governed by the general rules applicable for low-voltage electrical
installations; at the location where the work is carried out and by the usual practice of the national
electric companies.
In this respect, there is no major difference from other rural distribution networks. However, there
are some elements specific to mini-grids:
● All active equipment in the photovoltaic installation (regulators, inverters, etc.) must be
properly protected against over voltages of atmospheric origin for both electrical input and
output connections;
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REPORT)
● It is necessary to provide a general switch allowing the total switch of consumption on the
auxiliary generator in the event of disconnection of the photovoltaic plant;
● It is advisable to carry out the grounding connecting of the metal frames of the photovoltaic
modules and the support structures with the earth of the building, separately from the general
electrical outlet linked to the neutral, the negative pole of the batteries, and the chassis of the
electronic equipment;
● For the dimensioning of the section of the conductors of the electrical distribution lines, the
maximum intensity should be limited by the power of the photovoltaic inverters and the
auxiliary generator of the mini-grid. The voltage drop at the most distant point in the low-
voltage (LV) network will also be calculated based on this maximum power of the equipment
installed;
● The street lighting lines can be controlled preferably from the photovoltaic plant, allowing the
activation of its operation at twilight and regulation of hours of operation according to the
charge of the plant; and
● Installation of the meters should preferably be carried out outside homes. Meters must be
sealed and with the connection conductors suitably protected on arrival, which prevents
access to contacts and connections and allows visual inspection and detection of possible
fraud.
4.2 Distribution Network

The distribution network includes the following elements and considerations:
 The grid for the distribution of energy produced by the mini-grid power plant, which can be
distributed through low voltage (if distance < ≈1 km) lines or medium voltage (if distance >
≈1 km) lines according to the distance and power demand in the line’s edges (voltage drop);
 3-phases versus 1-phase, if there any existing 3-phases clients (unlikely) the project developer
may consider part of the distribution network being 3-phases. Cost is also an important
consideration;
 Safety, while evaluating Medium Voltage versus Low Voltage safety should be strongly
considered as the electrical hazards of operating a MV line are much more dangerous than LV
lines;
 The street lighting infrastructure (sometimes integrated into the existing distribution
network´s poles);
 Connection drops, connection accessories, cabling and supporting structures of each
subscriber or group of subscribers;
 The electric meter, connection board, and connection protections; and
 The household internal wiring and appliances (optional).
When designing the distribution grid, if the GMG projects are to be interconnected (less than 25km
from the national grid) to the main grid (EEU), the GMG must consider the parameters described
under main grid readiness levels MGRL1 and MGRL2.
4.3 Techno-economic analysis

The techno-economic analysis will pre-determine the sizing of the GMG plant as well as some
important financial metrics, including the expected revenues and the required CAPEX and OPEX
investments for single or multiple GMG site projects. Specific software can be employed to do this
calculation.
The major outputs under this analysis will be: i) Return on investment; ii) Payback; and iii) Key financial
metrics to assess the bankability and profitability of the project and the level of funding required. Such
Page 46
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key financial metrics can be the internal rate of return (IRR) and the Net Present Value (NPV) of the
project.
As GMGs are long-term investments with middle- or long-term payback, it is key to understand and
show the financial metrics to demonstrate a bankable project. If the output is not attractive enough, a
new iteration will be required to assess how to improve the business model. This will imply modifying
the technical and economic approach and variables (as inputs), which in exchange will produce new
major outputs.
The bankability of the project will be always related to several metrics. For example, the IRR may be
the most important metric for an investor, but if the payback period is too long or the positive cash
flows come too late in the project lifecycle, it will not be seen as an attractive investment.
It is important also to understand the target (size of ticket; expectations in terms or return) and type
of vehicle (equity; debt) of potential investors upfront.
As mentioned throughout this guide, it will be very difficult to show an attractive and profitable
business model if it includes only household needs and does not demonstrate an increase in demand
over time. The evidence of productive uses is therefore mandatory, as is demonstrating the project’s
enabling of economic activity in the village.
4.3.1 Techno-economic analysis tools

As mentioned previously, different software can be employed to undertake the techno-economic
analysis (e.g., Homer Pro or RetScreen).
Although software is an efficient tool for calculating major technical, economic, and financial metrics
quickly and reliably, it represents only an important first step in this process. Software does not usually
provide all necessary techno-economic indicators, hence additional work needs to be done using
custom-made spreadsheets.
For example, when using Homer Pro, additional techno-economic analysis must be done to complete
a DFS. Some missing elements include:
 The simulations only include the generation plant. The distribution line must be designed and
budgeted apart, as well as the cost of client-connections. These costs must be added after the
first techno-economic calculation.
 Homer Pro only simulates costs and not revenues. A financial model must be elaborated in
parallel, in order to carry out a cash flow analysis. The main inputs like annual CAPEX, OPEX
and electricity generation can be imported from Homer (or any other similar software).
Once the techno-economic analysis has been undertaken using specialized software or custom-made
spreadsheets, some of the key items to be analyzed are:
A. Technical
- Number of clients per type (residential, institutional, commercial, and industrial, related to
TIER framework)
- Demand forecasts per clients’ type and aggregated
- Size of the components
- Other technical indicators (performance ratio, battery autonomy, excess power)
- Reliability of service (e.g., hours of service availability, SAIFI, SAIDI)
B. Economic
Page 47
REPORT)
- Macroeconomic assumptions: exchange rate; inflation; cost of transactions

- Pricing: connections fee, tariff and services related (and appliances, if included)
- Initial CAPEX and recurrent OPEX
- Amount and type of public subsidy support required (i.e., grants)
- Selling, general and administrative expenses (SG&A)
- Bankability of the project (IRR, NPV, payback period)
- Average revenue per user (ARPU)
- Cash flow results
- Gearing: debt to equity ratio
C. Other (social/environmental)
- Timeline planned for construction and operations (long term)
- Greenhouse gas savings (compared to alternative generation technology)
5 Important additional considerations
5.1 Maintenance plan

An essential factor for a successful GMG project is good maintenance and sound technical supervision.
Usually, it is the responsibility of the GMG operator to ensure the maintenance and control of the
equipment installed up to the point of connection of the distribution network with clients' indoor
installations.
Since these facilities are often located in remote locations - where it is often difficult to find and secure
qualified personnel permanently - the assets should be designed in a simple and durable manner to
minimize the maintenance required. Maintenance must be planned from the beginning of the project.
During the procurement, a stock of spare parts should be acquired, along with necessary tools for
maintenance and instructions provided by equipment manufacturers. The project’s maintenance plan
should be based on reviews of the operation of the asset and corrective actions that identifies
weaknesses and improvements to be implemented during the lifetime of the installation.
The existence of several GMGs in a region (bundling of mini-grids) can become a key factor in lowering
and optimizing the costs of periodic maintenance visits by qualified technicians.
In general, three different levels of maintenance can be distinguished which can be performed by one
or more organizations or enterprises under the supervision of the plant manager or operator, and
which are described in the following sections of this chapter.
5.1.1 Basic daily maintenance

Basic daily maintenance of the installation does not require skilled personnel and can generally be
carried out by residents of the community. This allows quick responses in the event of an incident or
breakdown in the plant. Often this task is taken on by more than one person to ensure the presence
of a responsible operator at all times. These tasks are the caretaker’s responsibility.
This type of preventive un-skilled maintenance is important for the operation of the assets. It includes
basic monitoring and control tasks that must be completed on a regular basis to ensure the proper
functioning of the assets and the efficient resolution of problems that arise. The personnel in charge
do not require a high level of training in electricity or photovoltaic plants, but it is essential that they
have received specific and practical training to understand the meaning of the various indicators and
alarms in the control room, the basic elements for handling the plant, and the protocols to be followed.
Page 48
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Common operations of basic daily maintenance, with a weekly frequency, are as follows:
● Verification of the general indicators, alarms, and warnings which would signal a malfunction;
● Control of the state of charge of the batteries and of the auxiliary elements (generator, etc.);
● Checking the level of the electrolyte in the batteries and, if necessary, filling with distilled water
(not necessary in the case of sealed batteries);
● Cleaning the surface of the photovoltaic panels if necessary (normally during the rainy season,
this task can be postponed);
● Control of the absence of shade on the photovoltaic panels (at least for 3 hours before and
afternoon);
● Cleaning and maintenance of technical rooms and space of the photovoltaic installation;
● Generator commissioning, if necessary;
● Control and supply of the fuel reserve;
● Control and supply of the distilled water reserve (unnecessary in the case of sealed batteries);
● Revision of the stock of spare parts and tools; and
● In case of alarm or malfunction that cannot be solved by the caretaker, give notice to the
technicians responsible for corrective maintenance and managers established by the operator.
Under no circumstances should the personnel in charge of basic daily maintenance be handling the
generation facilities beyond their technical capacities and the tasks assigned to them.
5.1.2 Specialized preventive maintenance

Specialized preventive maintenance must be carried out regularly by expert personnel bound by
contract with the operator. The personnel must have in-depth technical knowledge (at the level of a
professional electrician) on low-voltage electricity and extensive experience in photovoltaic plants.
Usually, the specialized technicians are based near the GMGs to keep travel costs reasonable. Bundling
approaches also helps reduce the costs for specialized preventive maintenance if several GMG plants
are in proximity to one another.
The main goals of preventive maintenance tasks are to:

● Detect and correct malfunctions in the generation equipment;
● Anticipate serious breakdowns (supported by the monitoring system);
● Ensure the proper use of the facilities; and
● Ensure the life of the equipment.
Under the preventive inspection, carried out every three months, following checks must be included:
● Correct condition of support structures and fixings;
● Good state of the photovoltaic modules and their connections;
● Absence of shadows on the photovoltaic unit;
● Production of the different groups of photovoltaic modules;
● Good performance of photovoltaic regulation (regulators or inverters for connection to the
grid);
● Good mechanical and electrical state of batteries;
● Battery equalization is done as programmed;
● Equipment configuration parameters have right values;
● Proper functioning of probes, data acquisition system and monitoring;
● Correct operation of the genset and change of oil and filters if necessary;
● Proper operation of electrical protections;
● Alarms, fire safety and other security features are up to date;
● Distribution lines and street lighting are in the proper state; and
● Correct operation of the central unit's consumption devices and auxiliary services.
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The frequency of performing preventive maintenance tasks must be strictly observed. For more
information on (1) standard technical specifications for power quality, reliability, and availability and
(2) a standard accountability and performance reporting framework, please refer to the Quality
Assurance Framework for Mini-Grids from NREL.26
5.1.3 Specialized corrective maintenance

Specialized corrective maintenance concerns work following a breakdown or a malfunction of
equipment that could not be detected or resolved during the execution of preventive maintenance
tasks. This corrective work often involves the replacement of one or more components. The
availability of proper spare parts is therefore essential for the effective completion of this work. In
addition to maintaining a complete stock of spare parts to ensure rapid resolution of incidents,
operators must maintain an efficient supply channel for the various components of the installation for
replacement. For this, and when designing the GMG, it is important to always select distributors that
have reliable suppliers in the national market. Once the parts that make up the spare parts stock have
been used, they must be replaced immediately so that the stock of spare parts always includes a specific
number of reserve units. It is recommended to have replacements on hand for approximately 2% of
PV panels and at least one unit for each electronic component for example inverters and regulators.
Corrective maintenance work must be carried out by technical personnel with specialized training in
photovoltaics and other equipment that comprise a GMG. Often, the same technicians in charge of
preventive maintenance can also be responsible for corrective maintenance. If more complex failures
must be dealt with, they must be able to rely on external specialized support (e.g., manufacturers or
specialized firms).
5.2 Risk Assessment

Some of most relevant risks (technical, operations, and financial) are listed below. The list of existing
potential risks is much larger; however, most relevant ones are defined in Table 26.
Table 26: Risk Assessment for GMG
Activity Risk
Theft of electricity from the distribution network
Deployment of a low voltage network
Vandalism
Receipt of customer payments Risks of embezzlement / corruption / theft / security / assaults
Currency risk: Major part of the investment and operation costs

(including debt) will be in hard currency, while revenues are in
local currency
Risk of inconvertibility: Risk that the local currency will not be
convertible, degrading the business plan and possible default with
Establishment and operation of a local financiers, lenders
company
Transfer risk: Risk that the company's currencies can no longer be
transferred abroad and possible default with financiers, lenders.
Risk of rising inflation mechanically affecting costs. Without
compensatory measures, negative impact on the business plan
Regulatory change
26National Renewable Energy Laboratory, Quality Assurance Frameworks for Mini-Grids, 2016.
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REPORT)
Liquidity risk: Risk that the working capital will not be sufficient or
Financing of activities
that the expected financing arrives later than planned
Commercial, marketing, and technical Inability of teams to support the volume of business
operations
Appearance of a substitute product
Misunderstanding of market expectations
Sales and marketing operations
Underconsumption of customers/ potential customers
Customer dissatisfaction
Connection of homes to the low Bodily injury / electrocution
voltage network
Personal injuries / electrocution
Corruption and fraud
Construction / civil engineering
Risks related to suppliers
Risks related to access to the site (rain, roads, etc.)
Bodily injury / electrocution
Poor sizing of capacities (estimate of demand)
Reliability of the equipment (quality of the equipment installed)
Risks related to access to the site (rain, roads, etc.)
Maintenance and technical operations
Risk of battery explosion
Poor quality of telecommunications networks
Lightning risks
Battery recycling
Data loss
Use of computer systems Risks of hacking, spying, data leakage and protection of privacy
Delays in the implementation of the integration of mobile money
Matching skills to needs
Human resource management Employee retention rate
Capacity building and training
5.3 Recommendations
 A techno-economic analysis can be done with or without specialized software. It is important
to have good input data, such as demand, costs, and renewable energy resource. Models only
work if the input data is accurate.
 When estimating project CAPEX, all unit costs should be under the same conditions,
depending on the desired budget (e.g., EXW27 or installed costs). International logistics, local
transportation, insurance, and storage should not be overlooked.
 Component selection must consider various parameters such as price and quality, but also
availability in the local market and after sale services. Technology providers must be well
selected and have a good reputation and experience of minimum 5 years.
27 Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated
location, and the buyer of the product must cover the transport costs.
Page 51
REPORT)
 Battery selection is tricky. Although the prices of lithium-based batteries are falling and there
is increasingly more local market availability, experience using them in rural electrification in
remote locations are limited. The selection must consider predominantly robustness,
reliability, simplicity, and low maintenance needs.
5.4 Expected outputs for the DFS

The minimum expected products to be delivered by the developer for the DFS are:
 Techno-economic analysis
 Preliminary maintenance plan; and
 Risk assessment of the GMG
6 Modularity and expandability

GMG designs can be modular and expandable to meet future demand needs. In a solar PV mini-grid,
the power generation plant is composed by PV panels charging the batteries through charge
controllers (DC-coupled architectures) or through battery inverters (AC-coupled architectures). The
energy from the batteries is then converted into alternate current to feed in the distribution line
through the battery inverter.
The generation plants can be easily expanded in terms of generation, power capacity and energy
storage, as described below:
 PV generator: A set of PV panels and charge controllers (if DC-coupled) is called a solar basic
unit (SBU), which in each design is one or more controller connected to several panels. Expansion
of the generation can be done through adding SBUs, if:
i. The DC bus can support the total current of the PV; and
ii. The maximum charging current of the batteries is respected.
 Storage: Storage can also be expanded by adding battery banks, with each bank having a battery
voltage level (12/24/48 or other). The restriction to adding storage is that the battery cells should
be the same as the existing ones (manufacturer and model) and that the total number of battery
banks placed in parallel should only be done according to manufacturer guidance.
 Battery inverters: Battery inverters can be added in parallel in case the power demand increases.
In all cases of expansion, in addition to the restrictions mentioned, other restrictions concerning
communications should be considered. Each manufacturer allows a certain number of components to
be placed in parallel due to communications limitations.
Similar to expanding the mini-grid by adding components, components can also be removed and
placed in other mini-grids (SBUs, battery banks or inverters), if the respective limitations are
considered. The only challenge would be the PV structure, which is more challenging in dismantling
and installing in a different place.
7 Drawings
The following set of preliminary drawings should be performed as part of a feasibility study:
 Site Layout: A map of the village should be provided indicating a potential location of the
plant and using satellite imagery.
 Single Line Diagram (SLD): A simple electrical drawing of the generation plant, including
all the main components, should be provided.
Page 52
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 Distribution Network Layout: A preliminary plan of the distribution network should be

provided with the lines and poles clearly indicated. The number of poles and the total length
of the distribution lines should also be showed on this drawing and include information on
phase one to phase three.
These drawings will act as a foundation over which a preliminary design could be made if the feasibility
study concludes positively.
8 Components Summary
As part of the detailed feasibility study, the GMG developer should present a summary description
of high-level sizes and quantities of the power generation plant and distribution network. A
recommended template is provided in the following table:
Table 27: GMG Main technical characteristics summary
Solar PV Installed Capacity (kWpeak at STC conditions)

Installed capacity of any other generator (kW or KVA) and
type of technology (wind/biomass/specify if other)
Power conversion capacity (kVA)
Back-up genset capacity (kVA)
Storage technology
Battery bank voltage level
Battery bank capacity (kWh)
Battery bank autonomy (hours)
Distribution line voltage (s)
Distribution line phases
Total distribution line length (meters)
Furthest distance from generation to consumption (meters)
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REPORT)
PART III: CHECK-LIST OF OVERALL RECOMMENDATIONS

Part III of this document summarizes the overall recommendations by the consultant to EEA to take
into consideration in the upcoming regulations and directives, implementation, and monitoring of
Green Mini-grid projects in Ethiopia.
OVERALL RECOMMENDATIONS ON PART A: OFF-GRID TECHNICAL
STANDARDS
 Off-grid technical regulations standards. The proposed technical standards go beyond mini-
grids and can be applied to any off-grid technology chosen by the project implementer (national
grid extension, mini-grid or stand-alone power plant). The proposed standards categorize the
service level provided to the end-user, from least to most technically demanding.
 Output-based technical regulations. It is recommended to regulate outputs of the electricity
service; the document proposes in four (4) main categories of technical regulation:
o Power Quality (PQ): three (3) power quality categories are defined as per the end-
user requirements that are served through that power quality category
o Power Availability (PA): five (5) categories of power availability (daily energy and
maximum power consumption) are defined based
o Power Reliability (PRe): three power reliability categories are proposed based on the
end-user requirements
o Operational requirements or Key Performance Indicators (KPIs)
 Defining mini-grid thresholds on rated peak load and not based on the installed generation
capacity. The rated peak load in Kilovolt-Amps (kVA) is the maximum value of load, real or
planned, that occurs in a given period of time.28
 Mini-grid compatibility with the main grid and remote monitoring requirements should depend on
the distance from the national grid on the rated peak load the mini-grid is serving.
 Key Performance Indicators (KPIs). Part A of this document recommends 6 technical, 13
financial and 6 other (social and environment) KPIs to be reported annually to ERA. Beyond
these recommended defined indicators, the consultant’s advice that ERA consults the private
sector (in particular the current private and public mini-grid operators in the country) on the
adequacy of these proposed indicators.
PQ PARAMETER PER PQ CATEGORY PQI PQII PQIII

Voltage Variation NA ±10% ±10%
Voltage Imbalance (only 3-phases) NA <5% <2%
Frequency variations (Hz) not regulated 46 < f < 54 48 < f < 52
AC Harmonics < 10% < 5% < 3%
Short-Duration Voltage Variations < 5/day < 1/day < 1/week
Long-Duration Voltage Variations < 10/day < 5/day < 1/day
Voltage Variation ±25% ±25% ±25%
DC Percent Ripple (peak to peak) 10 % pk-pk 5% pk-pk 2% pk-pk
Transient noise Ripple noise also
DC ripple ¬ switching noise Unfiltered
minimized minimized
28 For a more precise definition, please refer to page 10 of this report.
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REPORT)
OVERALL RECOMMENDATIONS ON PART B: GREEN MINI-GRID FEASIBILITY

STUDY GUIDELINES
 The GMG feasibility study guidelines lay down the minimum steps, industry best
practices, and lessons learned from previous experiences for the mini-grid developers to
carry out detailed, technically-sound green mini-grid (GMG) feasibility studies.
 The consultant proposes these guidelines as a result of the literature review and consultations
carried out with EEA and stakeholders, identifying a gap in the current enabling
framework for mini-grids in Ethiopia. While some regulations mention the need of
carrying out and submitting a feasibility study, no dedicated document provides specifications
or guidelines in how to conduct a feasibility study
 Standard methodology for estimating the energy demand: tiered energy packages
as a standardized methodology for estimating the energy demand. By having a common
methodology of estimating the electricity demand, ERA will be more familiar and operational
while reviewing this critical part of a feasibility study among the different mini-grid proposals
to be reviewed
 Recommended standard outputs of a Detailed Feasibility Study (DFS):
 Exact location
 High quality GIS map of the community with clients geo-referenced
Site Assessment  Basic socio-demographic characteristic table
 Energy consumption and expenditure table
 Demand analysis per clients, including tiers
Electricity Demand
 Daily load profile (24-hours) of the community or intended service area
Mini-grid sizing,  Techno-economic analysis

design, and  O&M plan
assessment  Risk assessment of the GMG
 Site Layout
Drawings  Single Line Diagram (SLD)
 Distribution Network Layout
Others  Mini-grid Component Summary
 A techno-economic analysis can be done with or without specialized software. It is important

to have good input data, such as demand, costs, and renewable energy resource. Models only
work if the input data is accurate.
Page 55
REPORT)
For questions regarding this publication, please contact

*Add Name (email address)
Erin Hammel (ehammel@naruc.org).

*Please keep Erin’s name inColleen
the above box and(cborovsky@naruc.org)
Borovsky add one program staff person’s name before sending
the template to the consultant.
For questionsof
National Association regarding this publication,
Regulatory please contact (NARUC)
Utility Commissioners
Colleen Borovsky (cborovsky@naruc.org)
1101 Vermont Ave, NW, Suite 200
ErinWashington,
Hammel (ehammel@naruc.org).
DC 20005 USA
Tel: +1-202-898-2210
www.naruc.org




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TECHNICAL ASSISTANCE TO THE ETHIOPIAN ELECTRIC

AUTHORITY (EEA) ON OFF-GRID REGULATORY

OFF-GRID TECHNICAL STANDARDS AND GREEN MINI-

OFF-GRID TECHNICAL STANDARDS AND

Project Title: Technical Assistance to the Ethiopian Electric Authority (EEA)

Sponsoring USAID Office: AFR/SD

Project Number #: AID-OAA-A-16-00042

Recipient: National Association of Regulatory Utility Commissioners

Date of Publication: October 2020

Authors: The Cadmus Group, LLC and Trama TecnoAmbiental

ACRONYMS & ABBREVIATIONS ........................................................................................ 7

PART I: OFF-GRID TECHNICAL STANDARDS ................................................................. 9

Mini-grid definition ..................................................................................................................................................... 9

Rated Peak Load definition ..................................................................................................................................... 10

Technical regulations currently applicable in Ethiopia ..................................................................................... 10

Technical standards .................................................................................................................................................. 11

Balancing innovation and regulation ..................................................................................................................... 11

1. POWER QUALITY AND ELECTRICITY SERVICE STANDARDS .......................... 12

Power Quality (PQ) ................................................................................................................................... 12

Electricity Service: Availability, Capacity, and Reliability.................................................................... 17

Safety Standards .......................................................................................................................................... 19

2. OPERATIONAL STANDARDS .......................................................................................................... 21

2.1. Customer accountability ........................................................................................................................... 22

2.1.1. Level of service monitoring.................................................................................................................. 22

2.1.2. Service agreement .................................................................................................................................. 22

2.2. Off-grid operator accountability ............................................................................................................. 23

2.2.1. Technical reporting ................................................................................................................................ 23

2.2.1.1. Technical Key Performance Indicators (TKPIs) .............................................................................. 23

2.2.1.2. Technical documentation ..................................................................................................................... 24

2.2.2. Commercial reporting........................................................................................................................... 24

2.2.2.1. Commercial Key Performance Indicators (CKPIs) ........................................................................ 24

2.2.3. Other Key performance Indicators (OKPIs) ................................................................................... 25

2.2.3.1. Social KPIs ................................................................................................................................................ 25

2.2.3.2. Health, safety, and environmental KPIs ............................................................................................. 25

2.2.4. Monitoring progress .............................................................................................................................. 25

2.2.4.1. On-site monitoring ................................................................................................................................ 26

2.2.4.2. Remote monitoring................................................................................................................................ 26

2.2.4.3. Verification ............................................................................................................................................... 26

2.2.4.4. Restoration times ................................................................................................................................... 27

2.3. Key Performance Indicators Summary .................................................................................................. 28

PART 2: GREEN MINI-GRID FEASIBILITY STUDY GUIDELINES ................................. 29

1.1 Background and rationale ......................................................................................................................... 29

1.2 Intended audience ....................................................................................................................................... 29

1.3 What is a Detailed Feasibility Study (DFS)? .......................................................................................... 29

2 STEPS TO A DETAILED FEASIBILITY STUDY ....................................................................................... 30

2.1 SITE ASSESSMENT .................................................................................................... 30

2.1.1 Introduction to site assessment .............................................................................................................. 30

2.2 Geospatial analysis ...................................................................................................................................... 33

2.3 Recommendations ...................................................................................................................................... 34

2.4 Expected products for the site assessment in a DFS ......................................................................... 35

3 ELECTRICITY DEMAND .............................................................................................. 35

3.1 Methodology: Tiered energy packages .................................................................................................. 35

3.2 Importance of demand estimates ............................................................................................................ 36

3.3 Current electricity demand ...................................................................................................................... 38

3.4 Demand side management (DSM) .......................................................................................................... 38

3.5 Demand stimulation ................................................................................................................................... 38

3.6 Consolidation of inputs into the studies ............................................................................................... 39

3.7 Recommendations ...................................................................................................................................... 40