The Mini-Grid Business

Learnings from Sierra Leone

Nico Peterschmidt / INENSUS Season 1 Episode 41

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Sierra Leone has been one of the early large minigrid roll outs in Africa.  A great success and milestone for the sector with a lot of learnings.

Tariffs fell, demand jumped, and batteries died faster—that’s the uncomfortable arc of many rural mini-grids in Sierra Leone. We sit down with Dipta Majumder of INENSUS and Momori Kamara of MIK Energy to unpack how a pioneering regulatory framework, ambitious rollout programs, and political pressure on prices created both progress and pain. From RREP’s health-focused Work Package 1 to larger Work Package 2 sites and the UEF portfolio, we map where systems thrived, where they underperformed, and what must change to deliver reliable power without bankrupting operators.

We get specific on how elasticity-driven tariff cuts unlocked consumption but strained undersized PV and lead-acid storage, why reserve accounts for replacements failed, and how a split-asset model blurred accountability between public and private players. The conversation tackles FX shocks and inflation that halved effective tariffs in USD terms, the real cost of building a framework from scratch, and why distance between small villages quietly inflates OPEX. You’ll hear clear guidance on right-sizing PV and storage, shifting toward lithium, simplifying ownership structures, and using operator-led installations to cut EPC overheads.

The way forward is pragmatic and within reach. Differentiated subsidies can keep remote, low-income communities on the map without forcing operators into unviable sites. Clustering reduces logistics costs and improves uptime. Transparent tariff indexation protects revenues, while joint ventures blend international capital with local execution. With fresh EU and regional DARES funding, a regulator and ministry experienced in mini-grid realities, and two seasoned operators on the ground, Sierra Leone can turn hard lessons into durable gains.

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