Kenya lights rural areas with $150m World Bank funding

From the newsletter

Kenya, backed by the World Bank, is launching a major electrification programme targeting underserved counties. $64 million in contracts have been signed for solar-powered mini-grids and stand-alone systems, forming part of the $150 million Kenya Off-Grid Solar Access Project (KOSAP) for underserved counties.

• Africa's rural areas represent a vast, untapped renewable energy market. Despite Kenya's progress (75% rural electrification), 600 million Africans still lack power with most residing in remote terrains.

• Historically, grid extension to remote areas has been too costly. Kenya's shift to renewable mini-grids and stand-alone systems tackles this problem head-on, opening up power to previously unreachable communities.

More details

• Fourteen contracts will establish 113 mini-grids, bringing electricity to Turkana, Marsabit, Samburu, Isiolo, Mandera, Wajir, Garissa, Tana River, Lamu, Kilifi, Kwale, and Narok counties (Mostly arid and semi-arid parts of Northern Kenya).

• These mini-grids will not only provide power to homes and businesses but also support vital community services.

• Six contracts will connect 343 public health facilities, schools, and administrative offices to electricity via stand-alone solar systems, at a cost of approximately $2.8 million. Electrifying these public facilities is crucial for improving healthcare outcomes, enhancing educational opportunities, and strengthening local governance.

• KOSAP, a partnership between the Kenyan government and the World Bank, is implemented by the Ministry of Energy and Petroleum, Kenya Power, and Rural Electrification and Renewable Energy Corporation (REREC). Its aim is to improve access to modern energy services for residents of the aforementioned counties.

• While the funding is substantial, it may not be sufficient for Kenya to achieve 100% clean energy electrification in remote areas by 2030. This, however, is far from the issue.

• The core challenge lies in scalability, specifically the successful implementation and maintenance of mini-grids. Real energy success hinges on these pillars, fostering accountability among all stakeholders.

• During the contract signing, President Ruto affirmed that 63,000 of 93,000 identified public facilities are now connected to power, including 22,900 public primary schools. He also noted the completion of 1,071 public facility projects in the 2023/24 financial year, with another 1,450 underway in 2024/25.

• KOSAP's key focus areas include mini-grid development (solar-powered mini-grid construction for off-grid communities), solar home systems (facilitating the sale of 178,598 stand-alone systems to households, providing electricity to an estimated 900,000 people), and clean cooking solutions. It also provides stand-alone solar solutions for public facilities and solar water pumps for community boreholes, ensuring access to clean water.

• Demonstrating its commitment, the Kenyan government has hybridised diesel-powered stations with solar photovoltaic (PV) systems, with plans to install an additional 8 MW of solar power in Wajir County.

• In Lodwar County, the diesel power plant operated by Kenya Power has been shut down, with the national grid extended instead. This involved constructing 100 km of 66 kV power lines and a substation at a cost of approximately $5.8 million.

• The government projects that 460,000 people in rural areas will benefit from these initiatives by 2026.

Our take

• Though significant for Kenya’s rural population, addressing infrastructural challenges that make grid extension in rural areas unviable should probably be the first step. It would guarantee a more solid foundation for long-term electrification success.

• Second, installing solar mini-grids without ordained plans for their maintenance is a short-sighted approach. Maintenance is the backbone of these projects. Solar has been installed before; it just hasn't been maintained.

• Lastly, involving the private sector will ultimately be the key to this project's success. Often, government-led projects stall and lack in terms of implementation; this move guarantees the projects will see the light of day.