The Sustainability of Decentralised Renewable Energy Projects in Developing Countries: Learning Lessons from Zambia

Decentralised renewable energy (RE) systems such as solar PV mini-grids (MG) are considered to be a cornerstone for the strategic achievement of the UN’s energy access goals in the developing world. Many of these systems implemented however face substantial technical, financial and social sustainability challenges which are also a recurring theme in the relevant literature. MG analyses however often lack detailed technical or financial data or apply ‘silo-approaches’ as a comprehensive review of MG case study literature presented in this article reveals. Consequently, this study aims to enhance the understanding of RE MG sustainability in the developing context based on the integrated evaluation of the technical, financial and social dimensions of MG operation through empirical data from community surveys on energy use from Uganda and Zambia and two in-depth MG case studies from Zambia. By presenting detailed technical and financial data in combination with energy consumer perception, the study aims to close existing data gaps on sustainable RE MG operation and offers an approach to evaluate and optimise the operational sustainability of an MG in its individual local context. The article finds that the complex rural community ecosystem is a central, but yet undervalued determinant of MG sustainability in rural developing contexts. The mismatch between energy affordability and MG tariffs threatens MG sustainability and the scaling of energy access projects if not addressed specifically during project development and implementation. Consequently, the article calls for a strategic inclusion of community-ecosystem parameters and MG planning based on realistic energy affordability levels and an added value approach that includes dynamic MG financing mechanisms and targeted measures to generate added value through energy consumption as integral parts of RE MG projects.