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Promotion of solar-hybrid mini-grids in rural Kenya

Sector: Commercial • Location: Kenia

Source: German Agency for International Cooperation (GIZ)

Project
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ContextOnly 30 percent of Kenya's people have access to the electric power grid. In remote rural areas, particularly in the thinly populated north of the country, electrification rates can be as low as 5 percent. Although the Rural Electrification Authority and the semi-private electricity provider Kenya Power have achieved considerable progress in rural electrification over the past five years, t

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The project “Promotion of solar-hybrid mini-grids in rural Kenya” is an infrastructure initiative in the Commercial sector, located in Kenia. Taiyo aggregates data on it from German Agency for International Cooperation (GIZ).

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ContextOnly 30 percent of Kenya's people have access to the electric power grid. In remote rural areas, particularly in the thinly populated north of the country, electrification rates can be as low as 5 percent. Although the Rural Electrification Authority and the semi-private electricity provider Kenya Power have achieved considerable progress in rural electrification over the past five years, there remain vast differences in power supply in urban and rural areas. Power supply by way of mini grids appears to be the most economical option for providing electricity to rural population, particularly when renewable energy sources are utilised. To date, however, only few autonomous village power systems have been installed, operated exclusively by the parastatal power provider, and which are highly subsidised. Although the private sector could assume an important role in this context, the necessary regulatory and policy framework is not yet in place.ObjectiveElectrification of remote areas has improved – with the participation of the private sector as a model for nationwide electrification.ApproachThe project aims to improve the policy framework and the technical expertise among key political decision makers and the implementing skills of private business enterprises for sustainable installation and operation of climate-friendly solar-hybrid village power systems.Based on these goals, the project is active in four fields of action:1. Support is being provided to the key political decision makers to build up sufficient expertise and develop guidelines for disseminating solar-hybrid village power systems.2. The actors are being empowered to develop mechanisms for accelerating broad implementation based on the experience gained from pilot projects.3. The planning, technical and commercial skills of the private sector are being improved in order to ensure high-quality installation and operation of solar-hybrid village power systems.4. Support is being provided to establish and expand pilot projects. Rural population is receiving training in system operation and maintenance.The project's target group includes private and small-business power consumers in remote rural areas where the national power grid is not expected to be expanded to in the foreseeable future.Technical and financial cooperation are closely linked within the project, which forms part of the German Climate Technology Initiative (DKTI). In parallel with GIZ's advisory services, KfW Entwicklungsbank is financing related investment projects.Results achieved so farAn advanced training course has been developed for solar technicians, qualifying them to install hybrid solar systems in villages. The technicians receive their hands-on training at a 10kW solar-hybrid demonstration system at Strathmore University.The first 50kW pilot plant has been installed, which delivers solar power to a rural business centre. The regulatory authority has licensed the private project to generate and distribute electricity. This pilot is now used to assess operating models that can be scaled up, and it tests the economic viability of privately run mini grids.A new hand book with the title ‘How do we license it?’ provides a thorough guide to the process of licensing mini grids in Kenya, and it shares empirical values for practical testing. The project is also supporting the process of devolution with advice on the development of energy sector plans in a number of administrative districts, such as Turkana and Marsabit.

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