CrossBoundary Group
10.06.2025
Publication
10.06.2025
Publication

New study reveals mesh-grids as a cost-effective, scalable approach for rural electrification – Mini-Grid Innovation Insight

Key Findings
A new study finds mesh-grids are a complementary technology that can fill gaps in electrification efforts
CrossBoundary's Innovation Lab found full mesh-grid installations have 41% lower cost per connection compared to traditional mini-grids
Mesh-grids can cut initial investment costs and speed up connections in underserved areas
Mesh-grids are less compelling when used to extend existing grids - where they can be 45% more expensive than mini-grid extensions

A new study from CrossBoundary's Innovation Lab shows that mesh-grids are a scalable and cost-effective approach to rural electrification, particularly in areas where traditional infrastructure is hard to build or expand.

The findings highlight that mesh-grids can enhance rural electrification strategies by reducing initial infrastructure costs and speeding up connections in dense, underserved areas.

What are mesh-grids?

Mesh-grids are interconnected systems of decentralized generation and storage units that form a cluster to supply electricity to homes and businesses.  The technology offers reliable power access in remote areas where extending traditional grids is difficult.

"These results point to mesh-grids as a complementary technology that fills an important gap in electrification efforts alongside mini-grids, solar home systems and national grid extension. They're fast to deploy and cost-effective – meaning they are well-suited for many challenging contexts. It's not about choosing one approach; it's about having the full range of solutions to meet different community needs."

Tombo Banda, CrossBoundary Managing Director and Innovation Lab Lead

The Innovation Lab tested two configurations in Nigeria:

  1. A full mesh-grid installation
  2. Mesh-grid extensions to existing mini-grids

The full mesh-grid installation cut infrastructure costs per connection by 41%, at $803 versus $1,358 for the mini-grid control site. This figure is also 23% lower than the regional average for mini-grids in West and Central Africa, where nearly half the population still lacks electricity.

However, Banda and her team caution that not all mesh-grid deployments yield savings. Extensions to existing mini-grids were about 45% more expensive than standard mini-grid extensions, mainly because the original mini-grid already had adequate generation and storage, requiring only distribution upgrades.

The study also surfaced important considerations around operational costs and revenue models. While extension mesh-grids demonstrated 25% higher average revenue per user despite lower power consumption, full installations recorded 48% lower revenue compared to mini-grid control sites.

Mesh-grids show particular promise for household-level needs and low-to-medium power applications, typically providing around 1.2 kW per system. However, their ability to power higher energy loads for business use and maintain long-term effectiveness is yet to be determined.

The CrossBoundary Innovation Lab will continue testing to fully understand mesh-grids’ capacity for high-load productive uses and long-term durability across different deployment scenarios.

Download the Innovation Insight