Mini-grid projects that use land, water, biomass or other local resources are prone to conflict. Local livelihoods often depend on natural resources, so communities may resist the project if it deprives them of access to critical resources. For example, hydropower projects that divert water from irrigation systems may meet with strong resistance from farmers. In addition, land and water resources are often linked to communal cultural values, and the resources might have religious significance.

Project developers using locally important resources need to understand the community’s use and honor the cultural significance of natural resources. Successful developers work with communities to either ensure continued access to resources or provide alternatives. In some cases, mini-grid developers might need to change the location of an installation or switch to a technology that does not impact key resources.

Conflict arises when a project doesn’t deliver the type and level of energy services communities expect. Involving the community in the planning phase can help ensure realistic expectations. In many cases, mini-grids don’t provide the same quality of electricity services as grid-connected power. If a community expects the same services as a neighbouring community connected to the grid, they may be disappointed with the mini-grid project.

Some communities may misunderstand the role of the mini-grid project developer. They might expect developers to provide other services, such as education and health care. Effective community engagement can help prevent misunderstandings and show communities how energy services relate to larger local development goals.

Unrealistic expectations about tariffs can threaten the project’s financial viability. A community might expect to receive electricity for free. In many countries, communities are accustomed to receiving basic services from the government or international donors. In such cases, communities may be reluctant to pay for electricity.

To avoid unrealistic expectations and conflict over payment for energy services, the project developer can prepare an electricity service agreement. A service agreement is a legal document that establishes what the mini-grid developers will provide, what the community can expect in a given time period and how much the community will pay for electricity services. The project developer needs to make sure community members understand the terms of the agreement. Some customers may be illiterate, so project developers need to find alternative ways to explain the agreement. In addition, current participants will need to be able to explain the agreement to future customers. Both parties should sign the final document.

Mini-grid projects that benefit some community members more than others may cause conflict. For example, if only one group within the community has access to jobs created by the project, resentment may build among other community members. Similarly, if a community’s poorest members can’t afford to connect their homes to the grid, the project will fail to provide equal access to electricity.

To avoid unequal distribution of benefits, project developers can conduct prefeasibility studies that assesses a project’s potential for electricity production, economic growth and employment opportunities. Prefeasibility studies can help developers forecast a project’s benefits and create a plan to distribute those benefits fairly across the community.

In communities already embroiled in conflict, mini-grid projects are likely to face challenges. Inter-ethnic conflict, for example, may make community engagement difficult. If the mini-grid project requires resources the community is already fighting over, the developer might need to seek a different location or technology.

Communities with a history of conflict over development projects may resist incoming projects regardless of their benefits. Project developers should learn the history of development projects in the project location, assess what caused past conflicts, develop strategies for avoiding conflict and reassure communities of their commitment to avoid past mistakes.