ARE-OFID Cooperation on hybrid mini-grid systems

About OFID

The OPEC Fund for International Development (OFID) firmly believes that access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services is crucial for developing countries. In this context, OFID has recognised the importance of mini-grids and is giving strong priority to encouraging the private sector involvement in this market. 

The ARE-OFID Cooperation

ARE was awarded grant funding of USD 990,000 by OFID in July 2015, to provide de-risking mechanisms for business ventures to facilitate the deployment of hybrid energy mini-grids for affordable and sustainable energy services.

Following a call for proposals, the Executive Evaluation Committee selected four projects to implement hybrid mini-grid systems:

• In Bangladesh, Rahimafrooz Renewable Energy Ltd will install a hybrid mini-grid that includes a 80 kWp PV plant and a 40 kW diesel genset in the Island of Muradpur, benefiting 310 households (1,430 people) and 40 productive users.

• In Jharkhand, India, Association Mlinda will install hybrid mini-grids in 3 rural villages (Narotoli, Shahitoli and Pasanga), each comprising of a 20-kWp of renewable energy plant and a 12-kW diesel genset. It is foreseen that a total of 319 households will gain access to affordable, quality and sustainable energy services over a ten-year period; 41 existing market-based micro-businesses will increase their income and more generally, create possibilities for productive use (beyond markets) and 46 direct and indirect jobs will be created within local communities.

• In Blendio, in the Sikasso Region of southern Mali, ACCESS S.A.R.L. will install a hybrid mini-grid that includes a 32 kWp PV plant and a 68 kW diesel genset, serving 300 households and 40 productive users.

• In Mozambique, in the village of Titimane, Energias de Portugal, S.A. will install a PV/biomass hybrid mini-grid with a generating capacity of 100 kWp PV and 60 kW biomass gasification. 900 households, 33 productive users 3 community buildings will have access to electricity.