With research and development support from the Transforming Energy Access (TEA) platform, the African Forum for Utility Regulators (AFUR) is standardising mini-grid tariff-setting across the continent, simplifying processes for both regulators and developers, and accelerating access to clean energy.
Headquartered in South Africa, AFUR brings together 44 African utility regulators spanning energy, transport, water and sanitation across 31 countries, fostering collaboration and knowledge sharing between regulators and industry. Through its TEA-funded project, AFUR has developed an African-led mini-grid tariff settlement tool and resources to help regulators streamline and standardise tariff-setting processes, protect consumers, and encourage private sector investment.
Why Tariff Standardisation Matters
According to World Bank[1] estimates, the electrification rate in sub-Saharan Africa must triple to prevent half a billion people from being left without electricity by 2030. Mini-grids offer a practical solution, particularly for communities in remote areas or with limited access to national grids, but progress is slowed by regulatory complexity and limited private sector investment.
Mini-grid tariffs, the cost per kilowatt hour (kWh) of energy supplied to customers, are designed and approved differently across Africa. The process is often lengthy and inconsistent, with developers and regulators frequently disagreeing on methodology and price. Since tariffs determine how developers recover costs and attract investment, this lack of clarity creates a major barrier to scaling mini-grids.
AFUR’s Approach
To address this challenges, in 2021 AFUR partnered with the Africa Mini-Grid Developer Association (AMDA) to implement a new project — Mainstreaming Mini-grid Tariff Settlement Tools and Methodologies Across African Regulators.
Phase one of the project concluded in April 2024 and focused on:
- Developing a standardised mini-grid tariff settlement tool that helps regulators set fair and consistent mini-grid electricity prices, making the process easier and more consistent, lowering costs for customers, and encouraging more investment in mini-grid projects.
Supporting adoption of the tool in at least three African countries through targeted capacity building, including Sierra Leona, Zimbabwe, Ghana, Burkina Faso, and Nigeria (which has integrated it into its regulations).
Promoting knowledge sharing in the mini-grid sector, including through the development and publication four reports, two articles, and three podcasts. There were also internal, working-level outputs, including one news interview, five training sessions and two workshops.
Phase two of the project launched in May 2024 as the Africa Mini-Grid Electrification Drive, and aims to:
- Expand the adoption of the mini-grid tariff settlement tool to additional countries.
- Develop Model Mini-Grid Regulation Templates that provide a consistent framework for tariff-setting, licensing, and compliance, enabling regulators to adopt best practices and reduce barriers for developers.
- Deliver training on policy and regulatory frameworks.
- Support capacity building via AfDB and UNDP.
- Produce a Benchmark Report and Tool with CAPEX and OPEX data for regulators and developers.
So far, the mini-grid tariff settlement tool has been adopted by Cameroon, Togo, Sierra Leone, Zimbabwe, Burkina Faso, and Nigeria, fostering regulatory consistency, and facilitating mini-grid development.
The power of partnership
AFUR’s project is a flagship example of TEA’s Local Partnership Inclusion (LPI) support service which champions locally-led solutions. Launched in 2019, LPI strengthens the expertise of locally-led partners in the energy access sector across Africa, South and Southeast Asia, and the Pacific Islands. By supporting organisations based in these regions – and in the case of AFUR, supporting institutions with a specific remit and role around the market issue being tackled – TEA has been able to support locally-led solutions with strong national and regional buy in.
For AFUR, this approach has meant more than just efficiency — it has built trust.
Samuel Bunnya, AFUR Projects Coordinator, says:
AFUR is an African solution to an African problem.
He explains that when teams and consultants come from the same context, conversations change:
Members share more, speak more, and engage more because they feel understood.
That sense of ownership has helped AFUR bring together mini-grid stakeholders across 31 countries, creating a network that strengthens TEA’s reach and knowledge base. Samuel describes it as opening doors:
You often see interventions done on a country-by-country basis, but we’ve united multiple countries. That network is now available to the TEA platform.
Partnership has also meant collaboration beyond borders. AFUR works closely with the Carbon Trust, TEA’s delivery manager, to keep projects on track.
They’ve guided us with reports, reviewed documents, and fast-tracked processes when needed.
Looking ahead, Samuel sees opportunities for deeper engagement: more Africans involved in projects, more collaboration across organisations, and more knowledge sharing between regions. His advice for others considering partnership with TEA is simple:
Be open and honest. Keep your objectives clear. That’s how you’ll benefit.
This material has been funded by UK aid from the UK Government via the Transforming Energy Access (TEA) platform. However, the views expressed do not necessarily reflect the UK Government’s official policies.
[1] https://www.worldbank.org/en/news/press-release/2022/11/09/world-bank-group-announces-major-initiative-to-electrify-sub-saharan-africa-with-distributed-renewable-energy