For potential mini-grid operators, the prospect of future competition with on-grid electricity providers with different cost structures might be a significant deterrent to investments that entail substantial sunk costs. This highlights the importance of transparency and integrated planning of grid extension and mini-grid deployment, and of appropriate regulatory frameworks, so as to avoid discouraging private investors and ensure the viability of an incremental approach. While the experiences of China, India and Nepal suggest that this option is technically viable (Deshmukh et al.,