NEWS

Minigrids can power two and three-wheeled electric vehicles at a matching price with fossil-fuel alternatives.

This was the finding of an RMI Study, Powering Small-Format Electric Vehicles with Minigrids, which assessed the viability of two- and three-wheeled EVs using minigrids for charging, in a rural mobility setting.

A pilot programme was initiated in 2019 to test whether charging small electric vehicles at a minigrids in a rural setting would bolster the minigrid’s financial sustainability and allow the operator to recoup system costs at a lower electricity price for all customers. Through the project, partners deployed small-format EVs and charging infrastructure to test two business models in two geographies.

The study used pilot projects in India (SMV Green Solutions, Grassroots Energy) and Nigeria (MAX, Rubitec Solar) and concluded that the two- and three-wheelers could be competitive with petrol alternatives at a wide range of energy prices. In Nigeria, the investments in leased electric-two wheelers are expected to pay back within the vehicle’s life.

Since pairing renewable energy minigrids with affordable EVs in rural areas could contribute to both creating energy access for all and access to mobility, this addresses two SDGs in one go.

Andrew Alee, a senior associate of RMI Africa Energy Programme, said they found that EVs need to be used as much as possible to maximise their benefit to minigrids and cost competitiveness with fossil-fueled vehicles.

“There is a huge opportunity for investors and companies to develop business models that take full advantage of minigrids-powered EVs’ low operating costs in rural use cases where vehicles need to cover lots of ground each day,” explains Alee.