Currently around 1.5 billion people worldwide live without access to electricity, and without a concerted effort, this number is not likely to drop. Grid extension is often highly costly and not feasible in isolated rural areas, or is unlikely to be accomplished within the medium term in many areas. In such situations, electricity mini-grids can power household use and local businesses. They provide centralized electricity generation at the local level using a village distribution network and, when fed with renewable or hybrid systems, increase access to electricity without undermining the fight against climate change.

Members of the Alliance for Rural Electrification (ARE) have been involved in the implementation of hundreds of mini-grid projects around the world. The lessons learned from these projects, which are summarized in this report, provide insights on the key issues that must be considered to devise sustainable, replicable models for the scale-up of hybrid mini-grids. Implementing sustainable hybrid mini-grids involves complex technical, financial and organizational issues which must address the end-users and their needs, capacity building and training, tariff and subsidy setting, and institutional strength.