Mini-grids may have direct EHS impacts depending on their particular technology and design and the time and location of the project. Detailed information on the potential direct EHS impacts of mini-grids, including energy sources, distribution lines and batteries, can be found in the Resources section. Potentially significant direct impacts include:

The indirect impacts of mini-grids originate primarily through the sourcing of materials and fuel, but can also result from the end use of the generated electricity.

Several contextual factors determine whether potential mini-grid impacts become actual impacts, as well as the significance of those impacts.

Baseline Environmental Conditions

Baseline environmental conditions reflect the state of the environment before a project begins. The potential environmental impact of an activity is assessed by comparing potential impacts to the baseline environmental condition. The baseline environmental condition includes all aspects of the current regulatory and policy environment, such as current land-use plans, economic policies that might impact development and current climate variability. Understanding and documenting baseline environmental conditions are essential in order to allow for proper monitoring of risks once a project is implemented. Assessing the baseline environmental condition takes into account, for example, the following questions:

Regulatory Oversight

Where EHS regulations are strong and enforced—including for construction, energy systems, resource extraction, pollution control, protected areas and occupational health and safety—they may ensure that a mini-grid project does not harm the local environment. On the other hand, poorly regulated areas are more vulnerable to the negative EHS impacts of a mini-grid. In developing a plan for mitigating EHS risks, it is important to assess national, regional, municipal or community-based regulations from the outset. Market forces typically discourage all but the most proactive project developers from proposing their own regulations, because mitigation measures almost always raise project costs. Proactive and market-conscious regulatory bodies or active and informed community engagement are essential to striking the right balance between community needs for power against the environmental risks of providing it through mini-grids.

Management

Once the EHS risks are understood, mitigation of potential impacts can be incorporated through project design and management. A successful management system is essential to mitigate impacts, from ensuring that the correct inputs are used (i.e., biomass determined to be sustainable, as opposed to primary forest resources), to conducting regular system maintenance and practicing environmental monitoring.

Scale

It is important that the size of the project, and the EHS impacts resulting from the project’s size, be analyzed as part of the environmental review. However, there is no set scale at which the potential impacts become significant, as this depends on the particular location and design of the project.

The assessments in the text box are examples of formal processes to examine the environmental risks of an activity and plan for the mitigation of negative impacts.

Part of the assessment process involves comparing alternative options on the basis of environmental and community impacts. Full environmental assessments may be necessary if the risks are particularly high (such as a mini-grid located in or near a protected area). In other cases, less comprehensive reviews may be sufficient.

An EA assess the environmental consequences of a plan, policy, program or actual projects prior to decision making. EAs provide sufficient evidence and analysis to determine whether there is a need to prepare an EIA.

An EIA is the process of evaluating the environmental impacts of actual projects. USAID has established EIA procedures to implement National Environmental Policy Act requirements. The USAID environmental compliance regulation is Title 22 of the Code of Federal Regulations, Part 216. These procedures identify actions required to mitigate and monitor anticipated impacts from projects.

An SIA evaluates intended and unintended social consequences of a plan, policy, program or projects and any social change processes invoked by those interventions.

An SEA is an evidence-based tool that uses assessment methods and techniques to ensure that environmental considerations are fully included and addressed at an early stage in the decision making of plans, policies, programs or projects. For the most part, an SEA is conducted before an EIA is undertaken.

When negative EHS impacts occur, mitigation measures are needed. Mitigation refers to avoiding, minimizing, rectifying or compensating for adverse impacts. Measures should be incorporated into a mini-grid project through environmentally sensitive design, and they must be monitored and adjusted as needed.

The off-grid rural electrification Mitigation Momentum project in Ethiopia, for example, is supporting the development of Nationally Appropriate Mitigation Actions (NAMAs) to increase rural electrification by creating clean mini-grids, replacing fossil and traditional alternatives. One of the NAMA components includes an environmental impact and feasibility study for five pilot projects.

EHS impacts do not affect all stakeholders equally; some populations may be disproportionately impacted.

• Men, who are often those most prominently employed in construction, operations and maintenance are more vulnerable to risks at the site of the mini-grid.
• Women often spend more time in the home and may be vulnerable to risks there, such as indoor air pollution and exposure to fumes.
• Low-income or other excluded segments of the population may have subpar electrical connections and appliances, which makes them more vulnerable to electrocutions and fires.
• The young, elderly and sick may be more vulnerable to local air and water pollution, especially when they lack alternative housing options.

Recognizing these differences is important in assessing EHS impacts and designing appropriate mitigation and monitoring strategies. In conducting assessments, project managers should consider how they will consult with vulnerable groups in order to incorporate their viewpoints.