The long-term viability of mini-grids depends largely on their proper operation. Even if a mini-grid has been well designed and is technically efficient, it will stop working quickly if the operational phase has not been planned well and is not implemented correctly. Important points to consider are: skills and experience of managers and technicians, access to specific tools, ownership of various stakeholders, availability and use of proper management tools, demand management and stimulation and, above all, a viable business model. This means that sufficient revenue need to be generated to cover all the costs incurred. Revenue can come from the sale of electricity, of course, but also from the provision of other services (e.g. equipment rental, agricultural processing, sale of water, internet services, etc.), recurring subsidies, etc. The costs are the operating costs, equipment maintenance and replacement costs (when they reach the end of their life - batteries in particular for solar mini-grids) and potentially financial costs, if commercial financing such as equity or debt was sought to cover the investment costs.
MARGE is supporting an increasing number of donors funding mini-grids operated by rural electrification agences or small local companies to properly plan and implement the crucial operational phase. This means ensuring that the work is carried out properly, in accordance with initial specifications and the prevailing regulatory framework. But also, ensuring that sound management and operation systems are in place and that all parties involved have the means and resources they need to play their role in the operation of the mini-grid. MARGE is therefore supporting Enabel in Mozambique and Guinea on issues related to the proper management of mini-grids in isolated locations. In Mozambique, MARGE al just signed a similar contract with the AVSI Foundation to supervise the rehabilitation of a non-functioning mini-grid in Mpaca, in Cabo Delgado Province in Mozambique and help establish best practices to ensure the system's long term viabality.