Are Mini-Grid Projects in Tanzania Financially Sustainable?

Abstract While it is commonly acknowledged that mini-grids are the new pathway to bridging high electricity access deficit in Sub-Saharan Africa (SSA), comparably few studies have assessed how existing regulations and tariff policies SSA affect their potentials attract number of private investments required scale-up deployments. Private investors’ participation particularly crucial meet annual electrification investment needs $120 billons SSA. We study regulatory framework, structure, subsidy schemes for Tanzania. Additionally, using an optimization technique, we assess profitability a mini-grid project Tanzania from perspective. find approved standardized small power producers’ tariffs scheme still do not allow rural projects be profitable. A further identify successful business models strategies improve profitability.