Managing Prosumers' Economic Impact: Policy and Strategy Solutions for Mini-Grid Developers

This study aims to explore the potential revenue loss faced by mini-grid developers due to the conversion of mini-grid consumers into prosumers. Mini-grid developments already encounter various financial challenges, making it crucial to understand the financial implications of such a shift for their long-term sustainability. The analysis illustrates how consumers initially connected to mini-grids, who begin generating their own power through rooftop solar and battery systems, may impact the revenue streams of mini-grid projects. This study employs projected cash flow analysis and the net present value (NPV) method to evaluate the financial implications of prosumerism. By identifying potential challenges and risks associated with this conversion, developers and policymakers can formulate strategies to mitigate these risks effectively. Ultimately, the aim of this paper is to stimulate discourse and propose additional policy directions to ensure the de-risking of mini-grid investments amidst the rise of prosumerism.