Scaling Affordable Minigrids through Expandable 2nd life Batteries (SAMTE)

According to the World Bank, clean power minigrids are the least-cost electrification solution for 300 million people in sub-Saharan Africa. However, the high upfront CAPEX cost of minigrid systems, uncertain customer demand, and restrictive financial ecosystem significantly impede sector growth and sustainability. Within this framework, batteries are a major obstacle and intervention pathway, as they account for up to 30% of a minigrid's cost (the single most expensive component) and need regular replacement. Challenging this "battery barrier" our project will field pilot Vittoria Technology's innovative, digital battery leasing platform (Storage-as-a-Service) and Aceleron's scalable 2nd life Li-ion batteries at three MeshPower minigrids in Rwanda / Uganda. This pilot will demonstrate the technical, financial, and social impact benefits of the scalable battery leasing model -- and sustainable commercial potential across the continent.

Field studies confirm that reliable, affordable energy storage is critical to the long-term viability of off-grid renewable systems. Without affordability, customers cannot purchase electricity \> minigrid operators cannot fund battery maintenance \> power is not reliable \> customers defect from the minigrid and projects fail. In contrast, Vittoria Technology's scalable battery leasing with expandable storage products (like Aceleron 2nd life) enable a Virtuous Cycle supporting "right-sized" affordable battery banks, lower cost-reflective tariffs, higher energy use, greater community impact (e.g. via PUE, e-cooking), demand and revenue growth, and affordable "as needed" capacity expansion.

Alongside MeshPower, this pilot will field test Vittoria Technology's low-overhead battery leasing tools (including prototype digital platform automating Battery sizing & lease terms, Credit risk assessment, Local vendor matching, Contract onboarding), legal and financial frameworks, and remote monitoring/control processes to deploy our first semi-commercial trial battery leases. Likewise, this pilot will test the field performance of Aceleron's scalable 2nd life batteries as capacity expansion "modules," adding them into the energy storage architecture of 3 minigrids through unique integration strategies we have assessed to allow combination of dissimilar battery products and age -- including 1st life Li-ion and legacy lead acid.

Through expandable, modular battery technology and finance, our companies can enable affordable, sustainable minigrids that lower LCOE and increase adaptability to grow capacity alongside customer demand. Our innovative approach will 1) provide affordable advanced battery replacement / expansion for aging minigrids in sub-Saharan Africa (where 70% of minigrid batteries are short-lived lead acid, SEforALL/Bloomberg); and 2) support deployment of new minigrids that are lower-cost and scalable. Combined, these two avenues can catalyze growth and sustainability in the sector.