Determination of a Suitable Renewable Energy Source for Mini-Grid Business: A Risk-Based Multicriteria Approach

Table 1

Mini-grid business model classification.

Model	Descriptions
Public utility	(i) Mini-grid is owned and managed by a utility.; (ii) Uniform national tariff is applicable.; (iii) Investment is through public funds.
Community	(i) Community or local NGO owns and manages all aspects of the mini-grid.; (ii) It is financed by grants and small in-kind contributions such as land, labour and materials.; (iii) Tariffs cover only operation and maintenance costs, and a small percentage is retained for parts replacements.; (iv) Operated by a local group with little contributions from professionals.
Private	(i) Built, owned and operated by private companies.; (ii) Financing is obtained through equity, commercial or concessional loans, and grants.; (iii) Tariffs are usually higher in the absence of government subsidies.; (iv) Models are steered by suppliers and dealers who participate in reinforcing and building an electricity market that responds to consumers purchasing capacity.
Hybrid	(i) Integrates the features of other business models.; (ii) Ownership of different parts of the model is diversified.; (iii) Effectiveness and efficiency are higher than other models.; (iv) Private sector installs the equipment free of charge, operates and maintains the system under a concession and recoups its investment through collecting tariffs from end users.