THE RURAL ELECTRIFICATION

AUTHORITY

James Muriithi

The State-of-Play of Kenya’s Mini-grid Market

Presentation at Solar Mini-grids Workshop: Regulatory Framework and Quality Assurance, Safari Park Hotel on

29th September, 2016

Organized by U.S. - Africa CESP

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OUTLINE

1. INTRODUCTION

2. REA ELECTRIFICATION STRATEGY

3. ELECTRIFICATION OF PUBLIC PRIMARY SCHOOLS

4. OFF-GRID ELECTRIFICATION

5. ELECTRIFICATION THROUGH RENEWABLE ENERGY-

SOLAR HYBRID MINI-GRIDS

6. DEVELOPMENT OF MINI-GRID STANDARDS

7. CONCLUSION AND WAY FORWARD

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1. INTRODUCTION

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• Rural Electrification (REA) was established in 2006 through the Energy

Act of 2006 and became operational in 2007 with mandate of electrifying all the rural areas of the country.

• This was upon realization that although electricity is an important input

to the socio-economic development of the country, many parts of the country could not get electricity on commercial basis.

• In 2004, access level in the rural areas was 3.8% while the countrywide access level was 15.3%.

• Currently the connectivity level in the rural areas is about 38% while

the national connectivity level is about 50%.

2. REA ELECTRIFICATION STRATEGY

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• In its first Strategic Plan 2008 – 2012, the Authority focused on the

electrification of the three main public facilities namely: Trading Centres, Secondary Schools and Health Centres.

• The main methods used are grid extension for the interconnected

areas and stand-alone diesel stations/renewable energy for areas far from the national grid.

• Nationally there are about 88,263 public facilities comprising of

Trading Centers, public secondary schools/Polytechnics/Institution of Higher Learning, Primary Schools and Nurseries, Health Centres/Dispensaries, Social Halls/Churches and Mosques, Coffee Factories/Processing Plants, Tea Buying Centres, Community Water Projects/Boreholes, Administrative Offices and Police Posts.

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• Nationally there are about 88,263 public facilities comprising of Trading Centers, public secondary schools/ Polytechnics/ Institution of Higher Learning, Primary Schools and Nurseries, Health Centres/Dispensaries, Social Halls/Churches and Mosques, Coffee Factories/Processing Plants, Tea Buying Centres, Community Water Projects/Boreholes, Administrative Offices and Police Posts.

• As at August 2016, a total of 60,693 (69%) of the public

facilities had been electrified leaving a balance of 27,570 (31%) to be electrified by the year 2020.

3. ELECTRIFICATION OF PUBLIC PRIMARY SCHOOLS

• For the last three years or so, the Rural Electrification Authority has been focused on the connection of primary schools to electricity in line with the Governments objective of providing Digital Learning Devices (DLD) to all pupils joining standard one in public primary schools. REA is in the final stages of completing connection to all the public primary schools.

• There is a total of about 23,401 public primary schools in the Country. In

the last three financial years 2013/14, 2014/15 and 2015/16, REA supplied electricity to 14,940 primary schools across the country making the total electrified be 23,044. REA is in the final stages of completing the remaining balance of about 357(1.5%).

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• Out of the 23,044 primary schools electrified, about 18,887(82%)

have been supplied through grid connection and 4,157(18%) through installation of solar PV systems.

3. CONT.

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4. OFF-GRID ELECTRIFICATION

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• The national grid covers about 33% of the country where about 86% of the population is located. Grid is concentrated in the south with high potential agricultural areas. North is arid and semi-arid areas and extending grid is not economical. See map in another slide.

• In these areas off the national grid, isolated mini-grids and stand-

alone solar PV and wind installations are considered for electrification of targeted loads in line with the Rural Electrification Master Plan of 2009. A total of 33 off-grid diesel power stations have been implemented in the country so far. Out these, 14 stations were the old stations that were in operation before REA was established. REA has so far established 20No. new off-grid diesel stations and their status is as follows:

•

4. CONT.

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Commissioned Works in progress At contract stage Total

12 7 1 20

• Four (4) of the old stations have been decommissioned due to the arrival of the grid and the equipment taken to other diesel stations to enhance capacity. One(1) has been on standby mode due to poor quality power supply from a neighbouring country.

• Five(5) of the old stations have been retrofitted with renewable energy (solar/wind) while four(4) of the new off-grid diesel power stations have also been retrofitted with solar to reduce the fuel cost and environment impacts. Plans are in place to retrofit additional stations with solar/wind.

4. CONT.

Map showing grid and off-grid area

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5. ELECTRIFICATION THROUGH RENEWABLE ENERGY – SOLAR HYBRID MINI-GRIDS

• Total un-electrified public facilities in the off-grid areas are 3,799 out of

which 629 are trading centres (REA Draft Strategic Plan, 2016/17 – 2020/21).

• In the Draft Strategic Plan, REA has now changed its policy of electrifying the off-grid trading centres from diesel based supply to solar hybrid mini-grids. The approach will be used to electrify all the un-electrified off-grid trading centres identified in the off-grid areas. To this end, the Authority has carried/is carrying out a number of renewable energy off-grid mini-grids projects that includes the following; – 60kWp solar mini-grid in Biyamadhow market in Wajir County

targeting 150-200 households. – 25No. solar mini-grids of about 60kWp each in 25No markets in off-

grid areas in the financial year 2016/17. Works in tendering stage of evaluation.

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• In partnership with Southampton University of UK, the Authority has participated in the establishment of Kitonyoni 13.5kWp community solar project in Makueni; Oloika 13.5kWp and Shampole 8.4kWp Community Solar Projects in Kajiado. Further collaboration with the University is being explored in the development of more mini-grids.

• Further, in collaboration with other donors/development partners, REA

is also developing solar off-grid mini-grids in trading centres far away from the national grid comprising of the following:

• GIZ/KfW – 370kWp Solar-200kW diesel hybrid at Kalokol, Turkana

-180kWp Solar-100kW diesel hybrid at Dukana, Marsabit -140kWp Solar-100kW diesel hybrid at Ngurunit, Marsabit -Eight other trading centres.

5. CONT.

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5. CONT.

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• AfD – Retrofitting of 22 off-grid diesel power stations with renewable energy. Kenya Power is implementing the programme.

• World Bank – Establishment of 6 new off-grid diesel power stations

with solar energy component.

• The private sector is also contributing to the electrification of the off-grid areas through solar hybrid mini-grids: • GIZ ProSolar Project has supported the establishment of a 40kWp

Talek Power in Narok County. Project already transferred to the County government of Narok. It is further supporting the private sector on Result Based Financing (RBF) in the development of 3 solar hybrid mini-grids in Turkana County and a further 3 more in Marsabit County.

• In collaboration with Tramma TechnoAmbiental (TTA) of Spain, GIZ Prosolar project is supporting a solar mini-grid in Marsabit County on a Public Private Partnership (PPP) framework.

• PowerHive of USA has also established 3 solar mini-grids in Kisii County

and has plans to establish more in the County.

• Dream EP Global Energy has plans to establish mobile power solar stations in the Counties of Marsabit (6 sites) and Baringo (4 sites).

• On large scale grid-connected renewable energy projects, the REA

has secured financing of a 50MW solar plant in Garissa town. The plant is part of the 5000 + MW by 2016 power to transform Kenya by the Government of Kenya. Power Purchase Agreement between Kenya Power and REA has been approved by the Energy Regulatory Commission.

5. CONT.

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• Kenya is leading in the development of mini-grids in Africa and is on a mini-grids development mode as given in the aforementioned.

• As a result of this, a study on the development of regulations, revenue

arrangements, and technical requirements for renewable energy mini-grids is being carried out by the Ministry of Energy and Petroleum in order to attract private sector participation.

• Among the outcomes of the study is the development of minimum technical and service standards that will ensure among the following: • Development of a regulatory framework and financial

compensation arrangements. • The minimum technical requirements of the mini-grids that will

ensure integration with the grid when grids arrives. • Level of service of the mini-grids.

6. DEVELOPMENT OF STANDARDS

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• On the way forward, after supplying electricity to all public primary schools without power by end of December, 2016, the REA will embark on electrifying all the remaining public facilities through grid extensions in the interconnected areas and renewable energy mini-grids in areas far from the grid.

• The private sector will be complementing REA in the electrification of

the off-grid areas through the development private renewable/solar mini-grids as out the 50% balance of unconnected households and facilities, about 20% is in the off-grid areas indicating the potential of the mini-grid market.

7. CONCLUSION AND WAY FORWARD

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THANK YOU

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