Award-winning renewable energy company PowerGen is providing distributed energy services to yet another remote community through a 1.5kW solar mini-grid. The project is funded by a grant from the Kenya Climate Innovation Centre with GVEP playing an advisory role.
Over the last two years the company has set up 24 community-scale micro-grid systems and has developed a pipeline of over 25 community projects throughout East Africa.
The demand for micro-grids is growing across the developing world. The International Energy Agency (IEA) holds that for universal electrification to be achieved, 55 per cent of all new power between now and 2030 must come from decentralised energy sources, 90 per cent of it being renewable.
Kenya’s electrification rate stands at 20 per cent, and 35 million people do not have access to electricity. Only 7 per cent of the people in rural areas are connected to the national grid. Moreover, 93 per cent of the rural population mainly relies on kerosene for lighting.
The establishment of micro-grids for rural electrification makes business sense as it is a rapidly deployable private infrastructure. In Kenya specifically, a new Bill is being introduced, which if passed into law, will enable private companies to provide electricity distribution and to offer, consumers choice and better quality of services.
READ MORE
Kenya's nuclear power plan faces significant cost hurdles
Adani and his Kenyan deals uncovered
The number of Kenyan energy companies seeking ways to provide energy services has significantly risen. One such player who has strategically positioned itself for the switch is PowerGen Renewable Energy, which began operations in Nairobi in 2011. Founded by three entrepreneurs as WindGen Power East Africa, manufacturing small wind turbines, it re branded to PowerGen in 2013. PowerGen has so far installed 24 solar micro-grids with a total capacity of over 70 kW – 22 in Kenya and 2 in Tanzania. PowerGen’s goal is to accelerate rural electrification by providing off-grid communities with lasting energy infrastructures, using a pay-as-you-go solar microgrid model.
PowerGen installs a solar generation system in the centre of a community and extends the grid to surrounding homes and businesses. Each customer pays a nominal connection fee and receives a board in their house that includes a breaker, a light bulb and an outlet.
“The smart meters allow customers to pre-pay for electricity using mobile-money and check their energy balance through their mobile phones. They store the usage data as well as the voltage and temperature of the batteries in the cloud, allowing PowerGen to monitor the entire system remotely”, says PowerGen’s Chief Operations Officer Eve Meyer.
In October 2013, PowerGen was selected for support by the Kenya Climate Innovation Center (KCIC, a partnership providing incubation, capacity building and financing services to Kenyan entrepreneurs that are developing innovative solutions in the energy, water and agribusiness sector, to address climate change challenges.
Besides receiving financial support, the company was assisted in identifying potential micro-grid sites across the country. GVEP, one of the KCIC’s partners, is providing financial advice and micro-grid development support.
In July 2014, PowerGen identified Kiwa Island, a small island about 500 metres off the shore of Lake Victoria in Homa Bay County, Kenya, as one of the places to benefit from a micro-grid. Kiwa Island is not connected to the national grid, forcing residents to rely on kerosene lamps to light their homes. The island has remained in darkness, even though the nearby town of Ndhiwa has power. Logistical challenges of getting the national grid to the island means Kiwa is not likely to get power in the near future, just like most far flung areas in Kenya.
PowerGen conducted a pre-survey throughout the island; 14 people expressed interest in having their homes powered. A subsequent detailed survey in February 2015 was also taken on, resulting in PowerGen’s decision to install the solar microgrid in March this year.
The power solution has transformed the lives of local inhabitants, among which 26-year-old George Otieno who runs an entertainment business. He had faced numerous energy challenges since establishing his business in 2014. He would often be forced to close business early, in spite of the swelling clientele, due to unreliable power supply. His fortune changed when he got connected to PowerGen’s micro-grid.
“When I started this business, I bought an 80W solar panel and battery to power a music system and keep my business running even after dark. Since I also run a bar, most of my clients would come in after work with the intention of winding down after a long day of work. However, the solar panel could only provide power up to 10pm on a good day, and sometimes earlier depending on the amount of sunlight. I couldn’t rely on it when it rained. This has a very negative impact on my sales”, he says.
Otieno, who chose to have the 1.5kW microgrid installed on his land, is very happy as it helped his business take off. The microgrid has enabled him to enjoy power just like those connected to the national grid. “I even bought a television set to entertain my customers, most of which come to watch news and football matches. Nowadays I remain open up to as late as 1am”, he says, adding that he now serves close to 60 customers in a day.
Locals are happy to enjoy access to electricity and their children can now study at night without straining their eyes or inhaling smoke from kerosene lamps that cause respiratory illnesses. Most households have also purchased appliances such as television sets and refrigerators.
The demand for power in the area is growing and PowerGen is monitoring the usage to determine how many more people can be connected to the existing micro-grid without incurring additional costs. Their pay-as-you-go system enables the purchase of electricity credits; when the users’ units run out, a notification message is sent directly to their phones, from which they can top up.
“We pride in making energy accessible to all, regardless of their locations and social status. PowerGen micro-grids are even more reliable than the national grid because users never experience power blackouts.” says Felix Magaju, GVEP CIC Manager.
The micro-grid works like a national grid connection: users can wire their homes as they wish and use several appliances at a time. “These grids also require very little maintenance. The lockable PowerBox helps keep the batteries and meters safe, while the solar panels are secured with bolts”, says Meyer.
Those interested in connecting to the micro-grid pay a connection fee of $10, merely a small fraction of the $350-$700 that users pay to be connected to the national grid. More than 700 households and businesses, translating to over 5,000 people, are benefiting from these micro-grids in Kenya. With every micro-grid, the PowerGen team offers user education and a reference sheet for quick troubleshooting.
