Mini grids seen as solution to increasing electricity access for Kenya’s poor

A number of interrelated factors are silently and progressively pushing Kenya towards development and utilisation of mini grids.

This dynamic push may catch key policy makers in the energy sector, the national government and the county governments flat footed.

The International Energy Agency (IEA) defines a mini grid as “a set of electricity generators and, possibly, energy storage systems interconnected to a distribution network that supplies the entire electricity demand of a localised group of customers. This power delivery architecture can be contrasted with single customer systems, for instance, solar home systems, where there is no distribution network interconnecting customers, and with centralised grid systems, where electrical energy is transmitted over large distances from large central generators and local generators are generally not capable of meeting local demand.”

The level of electricity connectivity in Kenya is still quite low at about 18 per cent, according to the Kenya Population and Building Census of 2009.

The Constitution of Kenya, 2010 divided the country into 47 counties to facilitate rapid developed, service provision and delivery to all Kenyans.

Statistics from the Kenya census of 2009 shows that Turkana at 2.45 per cent, Tana River (2.5 per cent), Mandera (2.55 per cent) and West Pokot (2.6 per cent) have the least electricity connectivity rates.

Nairobi leads the counties at a connectivity rate of 72.37 per cent while Mombasa and Kiambu come second and third at 59.02 per cent and 53 per cent respectively.

Other counties like Busia, Nyamira, Samburu, Nandi, Vihiga, Elgeyo Marakwet, Marsabit, Kisii, Trans Nzoia, and Baringo have a connectivity of less than 10 per cent, according to the same census of 2009.

The county governments, in close collaboration with the national government, have a daunting task to develop appropriate strategies to minimise energy poverty levels, more especially in counties with electricity connectivity of less than 10 per cent.

The electricity connection charge, that currently stands at Sh34,980 for single phase connection, is one of the factors that is contributing to low connectivity in areas that already have high electricity access.

In Kenya, electricity access is said to be 100 per cent if all residences and commercial establishments are within a radius of 600 meters of a distribution power transformer; even if not connected to the grid.

A number of counties with electricity connectivity above 10 per cent have been noted to have access rates of over 50 per cent, while in some access is at 100 per cent.

The low purchasing power of Kenyans in these counties makes it impossible for them to get grid connection despite being within a radius of 600 meters of a power transformer.

READ: State keeps power connection subsidy at Sh35,000

A number of initiatives, both by the Kenya Power and the government, for instance the electricity connection loan popularly known as “Stima Loan” and “subsidised” connection charges have not borne much fruit in catalysing electricity connectivity in these areas.

A number of sector experts have indicated that Kenyans can afford to pay for the energy units based on the fact that they spend much more money on kerosene for lighting purchased on a daily basis.

Connection charge

This group of Kenyans simply won’t afford to raise the Sh35,000 at once but can afford Sh50 a day, an equivalent of Sh1,500 a month.

The Jubilee Manifesto entitled ‘‘Transforming Kenya, Securing Kenya’s Prosperity 2013 – 2017’’ has laid out a number of strategies to ensure power for all.

It states that “every Kenyan should have reliable electricity supply in their homes and that all businesses and industries should be able to operate safely with the knowledge that they will have access to energy they need.”

As Kenya strives towards an additional 5000+MW of additional power, then need to come up with innovative financing schemes or affordable charges for electricity connections will become more pressing.

Increasing electricity connectivity has been noted as one of the enablers of the 5000+ MW power policy.

READ: Factors that may make or break Kenya’s 5,000+MW power policy

Currently, Kenya does not have a clear policy framework for development of mini grids to facilitate participation of the private sector.

The current frameworks are suitable for development of national or regional electricity grids and government funded or supported mini grids.

As a result, this has given way to haphazard development of community initiated mini grids and to large extent private and commercially driven mini grids.

The government and other related agencies have adopted a silent policy of non interference with community initiated mini grids.

The government has not intentions to shut down these mini grids despite the fact that they are operating outside the legal and regulatory frameworks because they provide the much needed electricity in these areas.

Community initiated mini grids have inherent characteristics of charging unsustainable (very low) tariffs, little or no connection charges and the grids do not meet the minimum standards for healthy and safety.

Private and commercially driven mini grids have sprung up in a number of areas to also provide the much needed electricity, but just like the community initiated mini grids, they do not also operate with the legal and regulatory frameworks.

Private and commercially driven mini grids have inherent characteristics of charging high tariffs, little or no connection charges and the mini grids not meeting the minimum standards for healthy and safety.

Despite the high tariffs charged, which have been estimated to be more than three times the current average Kenya Power tariffs for domestic consumers’ category, communities are comfortable and willing to pay these high charges to enjoy electricity connectivity.

These factors; low electricity connectivity rates, high electricity connection charges, lack of clear and suitable policy, legal and regulatory frameworks will continue to create a dynamic and unstoppable push towards development of mini grids.

Time will tell whether these mini grids are sustainable in the long term, but the positive side is that most of these mini grids will continue utilising renewable energy sources and contribute towards reducing energy poverty in the country.

The writer is a director of Renewable Energy at the Energy Regulatory Commission (ERC). Views expressed herein are his and do not represent views of any organisation.