Exploring Africa's Mini-Grid Tariff Methodologies

June 2020 – Under funding from the Energy Division of the United States Agency for International Development (USAID), the National Association of Regulatory Utility Commissioners (NARUC) has published a report and matrix titled “Exploring Africa’s Mini-Grid Tariff Methodologies.” 

This work is an examination of the various mini-grid tariff methodologies being used across the continent to identify best practices and trends and summarize similarities, differences, and strengths across these different methods. The objective of this work is to provide recommendations to inform the development of future methodologies within Africa.

This report summarizes NARUC’s research to analyze mini-grid tariff setting in African countries. Some research objectives include:

• Identifying themes, similarities, and differences in current African mini-grid tariff setting approaches;
• Identifying tariff-setting best practices in Africa and around the world that could be leveraged and implemented within African markets;
• Providing alternative regulatory pathways for African countries to consider when approaching market challenges; and
• Providing recommendations for additional tariff-setting tools that could provide benefit to the African market.

We encourage you to explore the report and reach out to us with any questions!