Last December, 36-year old Nicholas Kyalo journeyed\nback to his Ukambani home village, accompanied by his wife and two children for\nChristmas.<\/p>\n\n\n\n
Nothing had changed. The sleepy village was\npitch-dark when they arrived. Since 1984 when he was born, his home area is yet\nto be connected to electricity.<\/p>\n\n\n\n
This time, however, he came armed with a\nsolar kit safely tucked in a hand bag, not only lighting up his Kibwezi home\nbut also a Christmas tree.<\/p>\n\n\n\n
\u201cOur village neighbours were amazed,\u201d he\nquips.<\/p>\n\n\n\n
Kyalo says he bought the small lighting system from solar\nfirm M-KOPA. Pressed for cash, this was only made possible through the solar\ncompany\u2019s flexible payment plan that allows small payments over a period of\ntime instead of lump sum payouts.<\/p>\n\n\n\n
The solar system comprises a pair of light bulbs and storage\nbattery, slightly larger than the size of a TV decoder.<\/p>\n\n\n\n
Back at his rented single-room house in Kajiado, 80km south\nof the capital Nairobi, he says the solar kit has saved him huge energy costs,\nfreeing up cash that he used to open a small welding shop. <\/p>\n\n\n\n
Though the house is connected to the national grid, 90\npercent of his energy needs are now met by solar.<\/p>\n\n\n\n
Kenya Power\u2019s supply has been relegated to powering his small\nTV.<\/p>\n\n\n\n
He says he pumped the savings into buying a welding machine\nand grinder at a total cost of Sh30,000. Prior, he leased the two machines at a\ncost of Sh1,000 per day, draining him.<\/p>\n\n\n\n
M-KOPA alongside other solar providers run the pay-as-you-go model where\nclients pay for use of home solar systems as a service until the full cost of\nthe equipment is recovered upon which users assume ownership. Payments are\nthrough mobile money.<\/p>\n\n\n\n
Miles\naway in Busia in western Kenya, another solar concept is taking root.\nSolar-powered mini grids are sprouting, lighting up remote off-grid villages. <\/p>\n\n\n\n
Here, we meet Frederick Ojiambo in his\n20s. Since being connected to a solar mini-grid, the barbershop owner makes an\naverage of $380 (Sh38,000) monthly. Emboldened by the bright fortunes\nelectricity access has brought him, he\u2019s now branching out into chicken\nfarming; he plans to acquire an electric eggs incubator. <\/p>\n\n\n\n
\u201cMy friends and I used to walk for ten kilometres to the\nnearest town centre, Funyula to get our hair cut. This gave me an idea to start\nthis barbershop which is doing quite well,\u201d says the former farmhand.<\/p>\n\n\n\n
Through an electric clipper, the young man has found his\nfinancial footing.<\/p>\n\n\n\n
Ojiambo is among dozens of Sidonge village folks in Busia who\nhave recently seen their fortunes turn for the better with entry of electricity\nin the area.<\/p>\n\n\n\n
But theirs is not the traditional connection to the national\ngrid operated by Kenya Power. It would take years for the central grid to reach\nOjiambo\u2019s remote village. <\/p>\n\n\n\n
For two main reasons. <\/p>\n\n\n\n
To begin with, the heavy cost of stretching the national grid\nthrough construction of new overhead transmission lines to transport power to\nthe remote, economic backwater area fails the cost-benefit analysis test in\nresource allocation. The cash-strapped government would better use the funds\nfor other more pressing and urgent needs.<\/p>\n\n\n\n
Second, such village populations have low incomes and\npurchasing power, meaning they cannot pay what it would cost to connect them to\nthe national grid, without heavy State subsidies. Most of these rural customers\nwould ordinarily use power for low demand needs like charging phones, lighting\nfew rooms and playing small electronics.<\/p>\n\n\n\n
So how did Sidonge village and a few others around the\ncountry get access to electricity if not through the national grid?<\/p>\n\n\n\n
For Ojiambo, the barbershop owner, and the new crop of\nbusinesses sprouting in his home area, his power needs are met by a small power\ngrid (mini grid).<\/p>\n\n\n\n
A mini grid is a smaller version of the national grid,\ncomplete with a power generating plant and distribution lines, but on a smaller\nscale.<\/p>\n\n\n\n
The technology has helped decentralise electricity to off-grid\nareas, igniting rural economies ahead of the arrival of the national grid.<\/p>\n\n\n\n
Mini grids are steadily gaining popularity especially among\noff-grid regions of Africa and have been billed as the grid of the future,\nbeing implemented today. They are seen to complement African governments\u2019\nefforts of achieving 100 per cent electrification rate in the continent in the\nshortest span possible and with less upfront resources.<\/p>\n\n\n\n
The Sidonge mini grid in Busia involves a small solar power\nstation and wires running short distances to customers\u2019 premises.<\/p>\n\n\n\n
It\u2019s operated by RVE.SOL, a Portuguese company, which\nrecently acquired more solar-powered mini grids from Seattle-based investment\nfund Vulcan founded by the late Microsoft co-founder Paul Allen.<\/p>\n\n\n\n
RVE.SOL operates in Kenya as Kudura Power East Africa and\nacquired the small grids in Marsabit, Turkana, Kajiado, Nakuru and Migori.<\/p>\n\n\n\n
\u201cThe acquisition puts us well on our way to\noperating 50 sites and serving 45,000 people with renewable electricity by\nmid-2021,\u201d the firm founder and managing director Vivian Vendeirinho was\nreported as saying.<\/p>\n\n\n\n
Nairobi-based PowerGen is yet another mini grid private\ndeveloper and runs solar powered micro grids in Narok. <\/p>\n\n\n\n
Milsa Okochi, also a resident of Sidonge village, is yet\nanother beneficiary of the mini grids campaign. Before electricity made entry\ninto the area, Milsa was a stay-at-home mother of 10, occasionally engaging as\na farmhand. By her own admission, she never had any business experience.<\/p>\n\n\n\n
But after the mini grid was set up, and following a series of\ntraining, she acquired a blender and proceeded to set up a fruit juice\nenterprise.<\/p>\n\n\n\n
Today she makes a profit of $30 (Sh3,000) per week and pays\nonly a bill of $5 (Sh500) per month in electricity costs. Her neighbour Ojiambo\npays electricity bill of $10 (Sh1,000) per month for his barbershop, while his\ntake-home income averages $380 (Sh38,000).<\/p>\n\n\n\n
Interest in off-grid energy solutions has gained currency in\nrecent years, with firms setting up mini grids while others deploying\npay-as-you-go solar kits.<\/p>\n\n\n\n
Other private companies operating solar powered mini grids in\nKenya include US based Powerhive in Kisii villages and until recently Vulcan.<\/p>\n\n\n\n
Analysts have pointed out trends that appear to be\ntransforming the economics of delivering energy to remote rural customers.<\/p>\n\n\n\n
The list includes falling costs of solar equipment and backup\nstorage batteries, internet of things (IoT), which has enabled remote\nmonitoring and servicing as well as mobile money that has ensured flexible\npayment systems for the unbanked village population.<\/p>\n\n\n\n
Lastly, production of energy efficient appliances \u2013 LEDs,\nTVs, fridges \u2013 has meant these appliances deliver same services for much less\nenergy, favouring low-budget village folk.<\/p>\n\n\n\n
The International Energy Agency (IEA) estimates that 140 million people in Africa will gain access to electricity through mini-grids. This would require the installation of 4,000 to 8,000 minigrids a year for the next 25 years.<\/p>\n\n\n\n