MINI GRID PV BUSINESS

OPPORTUNITIES IN KENYA

PRESENTED BY:

ENG. HENRY GICHUNGI

Summary

• Introduction

• Renewable Energy Plans

• Diesel Mini Grids

• Hybrid Mini Grids

• Conclusion

Introduction • Kenya Power is a State Corporation with a

government shareholding of 50.1% and

private shareholding of 49.9% as at June

2012

• Currently the only off-taker in the power

market

• Owns most of the transmission and

distribution network

• 30% electrification currently

Main Players in Electricity Industry

Ministry of Energy

ERC

Energy Tribunal

KenGen Imports IPPs REA

GDC –steam resource

development

KETRACO – Transmission /Wholesale Market operator

KPLC – Distribution/Supply

Customers

Population density and Electricity Grid Coverage

Renewable Energy Plans

• Rural Electrification Master Plan update

study (REMP) carried out in 2009

• To update the national rural electrification

strategy for the period 2008-2018

• Identified 33 new sites to be established as

mini grids

• Kenya chosen as one of the six Pilot

Countries to benefit from Scaling-Up

Renewable Energy Program (SREP)

Renewable Energy Plans (Cont.)

• SREP program will support Kenya’s

initiatives towards achieving a

transformational change in RE

• Investment plan submitted to SREP Sub-

committee with three components:

Development of 200MW Geothermal

Solar Water Heating

Hybrid Mini-Grid Systems

Renewable Energy Plans (Cont.)

• New mini grid sites identified by REMP

• Capacity of mini grid based on population

• Government has commissioned a study on

privatization of existing mini grids

• Feed-in-Tariff for private RE generation

(20 UScents/kWh, min capacity 500kW,

duration of standardized PPA 20 years)

• Bill in parliament to open way for private

distributors in mini grids

Mini Grids

Diesel Mini Grids (Cont.)

• Currently there are 15 operational mini

grids operated by Kenya Power with a total

installed capacity of 13.6MW

• 5 of these have operated for more than 30

years (one has been connected to the grid)

• 11 have been developed in the last six years

• 10 more are currently being developed

• Operational Expenditure for mini-grids

funded through cross-subsidy i.e. uniform

tariff policy & fuel adjustment cost

Diesel Mini Grids

Solar Map

• Solar radiation

from 4 to 7

kWh/m2/day

• Highest solar

radiation in off-

grid areas

Hybrid Mini Grids • Government decided to introduce renewable

energy in mini-grids to reduce operational

costs

• So far, 7 have been made hybrid

• 2 plants have wind generation with

installed capacity of 50kW and 500kW

• 6 plants have solar generation with installed

capacities of 10, 30, 50, 60, 60 and 300kWp

• Retro-fitting and construction of new hybrid

Mini Grid Capacities and Energy

Station Installed

Capacity

Diesel

(kW)

Installed

Capacity

Wind (kW)

Installed

Capacity

Solar (kW)

Lodwar 1440 0 60

Wajir 3400 0 0

Mandera 1600 0 300

Marsabit 2400 500 0

Mpeketoni 960 0 0

Hola 800 0 60

Merti 138 0 10

Habaswein 800 50 30

Elwak 360 0 50

Baragoi 128 0 0

Mini Grid Capacities and Energy

Station Installed

Capacity

Diesel

(kW)

Installed

Capacity

Wind (kW)

Installed

Capacity

Solar (kW)

Mfangano 520 0 0

Lokichogio 520 0 0

Eldas 184 0 0

Takaba 184 0 0

Rhamu 184 0 0

TOTAL 13,618 550 510

RE investment plan

• Retrofitting of existing and currently in

construction diesel mini grids with a total of

3,7 MW planned (sizes of 100kW to 800kW

each)

• This figure might be adjusted with result of

feasibility study

Solar-Diesel Hybrid

Plant

Installed

capacity

(kWp)

Capital Cost

(USD)

Capital Cost

per installed

capacity

(USD/kWp)

Implementat

ion year

Implementat

ion Timeline

in Months

Merti Solar 13 135.753 10.433 2010 7

Habaswein Solar 30 247.893 8.263 2011 7

Elwak Solar 50 367.132 7.343 2012 12

Hola Solar 60 404.995 6.750 2012 12

Lodwar Solar 60 306.159 5.103 2012 7

Mandera Solar 300 2.134.223

7.114

(incl. 11 kV

power line)

2012 7

Hybrid Mini Grids (Cont.)

Design: Grid-tie PV with no batteries

Hybrid Mini Grids (Cont.)

• Capital cost met by the government

• All done through tendering

• Grid-tie without batteries design used due to

limitation of resources, future hybrids to

have stabilization systems so as to increase

RE penetration

• Battery storage plan for small mini grids

with low growth rate e.g. Mfangano Island

Energy Mix for all Mini Grids combined –

March 2013

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

Solar (kW) Wind (kW) Thermal

Total Off-grid Generation in March 2013

in kWh

Energy Mix per Mini Grid – March 2013

Merti Load Curve

0

5

10

15

20

25

30

35

40

12

.00

am

1.0

0am

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0a

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0am

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0am

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.00

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pm

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0pm

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.00

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pm

Diesel (kW) Solar (kW) Total (kW)

in kW Installed

Capacities

Diesel:

2 x 64kW

Solar:

12kWp

Lodwar Load Curve

0

100

200

300

400

500

600

700

800

00

.30

am

1.3

0a

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0a

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.30

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.30

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0p

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0p

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0p

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0p

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0p

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0p

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0p

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0p

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.30

pm

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.30

pm

Solar Diesel Total

in kW Installed

Capacities

Diesel:

3 x 400kW,

1 x 240kW

Solar:

60kWp

Mandera Load Curve

0

100

200

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800

900

1000

12

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am

1.0

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am

Solar (kW) Diesel (kW) Total (kW)

in kW Installed

Capacities

Diesel:

4 x 400kW

Solar:

300kWp

Hybrid Mini Grids (Cont.) • The solar hybrids done by several local

companies but all equipments are imported

including SMA inverters in four sites

• Installer does service during warranty

period of twenty four months

• No major challenges encountered

• Total estimated CAPEX

– Retrofitting existing and stations under

construction - USD 43 million

– Green-fields (44 stations) - USD 173.8 million

• Through Government budgetary support

• Grant or concessional financing from

development partners-commitments and

pledges from WB, AFD, SREP, KfW-GIZ,

DFID, JICA

Mini grid implementation proposal

Future Plans For RE • AfD committed Euros 30 million to fund

retrofitting of existing mini grids including

expansion of existing hybrids

• Capacity of RE still under discussion so as

to maximize RE penetration

• To be done through tender or Feed-in-Tariff

• Green fields to be done by both public and

private sector

• WB, GIZ/KfW and DFID have indicated

that they will fund the green fields

Conclusion • Plenty of sunshine all year

• Plenty of space for installation of solar panels

• Feed-in-Tariff

• Government of Kenya is committed to increasing

RE in rural areas and increasing access to

modern energy

• Quality lighting for tiny remote villages

• Low electrification means great demand

Q&A

THANK YOU