Solar power takes over in East Africa's far-flung areas

Technicians install solar panels in a health centre in Rwanda. PHOTO | FILE

What you need to know:

  • Off-grid solar systems are exempt from duty and VAT.
  • By 2015, the region had about 9.15 megawatts of installed grid-connected solar photovoltaic capacity.

Solar micro-grids are sources of electricity for communities living in remote areas who are not connected to national grids.

Off-grid solar systems are exempt from duty and VAT.

The technologies include pico applications (solar lanterns and small mobile phone chargers) and solar systems in homes, schools and clinics.

According to the United Nations Industrial Development Organisation (Unido) and Paris-based Renewable Energy Policy Network for the 21st Century (REN21), in 2015, $139.8 million was invested in the off-grid solar sector in East Africa, representing about half of the $276 million invested globally.

By 2015, the region had about 9.15 megawatts of installed grid-connected solar photovoltaic capacity.

From July 1 to December 31, 2015, 472,612 off-grid pico systems were sold in Kenya, 473,009 in Tanzania, 148,686 in Uganda and 84,724 in Rwanda.

The “pay as you go” mobile telephone payment system is a key driver of sales.

REN21 said other firms are piloting business models that charge for phone or battery charging, agricultural value-addition and information technology.

The International Renewable Energy Agency (IRENA) said the global weighted average cost of utility-scale solar PV fell by 62 per cent from 2009 to 2015 and could decline by 57 per cent from 2015 levels by 2025.

For 2015 to 2016, the cost range is between $1.3 and $4.1 per watt.

“The EAC has hydropower, geothermal, and solar PV, which had been exploited only marginally,” said REN21 executive secretary Christine Lins.

Kenya’s Cabinet Secretary for Energy Charles Keter said close to 1,800 institutions had been supplied with solar PV systems with a combined installed capacity of 2.4 MW at a total cost of Ksh3 billion ($300 million).

“By the end of June next year, installations will have been done in 100 more institutions. We want to produce 5,000 MW and ensure universal access to clean energy by 2020,” Mr Keter said.

“Regional integration is central to rapid growth, addressing the existing challenges of energy poverty and climate change in the EAC region,” said Unido director of energy Pradeep Monga.

He said Unido is working with regional and national partners to promote wider dissemination of clean efficient energy systems.

The US is funding Energy 4 Impact, which provides access to solar energy to off-grid communities to expand the role of women entrepreneurs.

Funding for the two-year Women Integration into Renewable Energy Value Chains programme was secured in early September 2016 to integrate 400 women in rural Kenya and Tanzania into the renewable energy value chain.

Energy 4 Impact said the programme will provide business technology training, mentorship and access to financing. It is expected to provide some 400,000 people with clean cooking and solar lighting products.

“We will leverage our experience and resources in the two countries to strengthen the capacity of existing clients with a view to expanding our product range and enabling them to diversify revenues,” said programme manager Godfrey Sanga.

The programme will mitigate climate change by reducing carbon emissions and degradation of natural resources by “dirty” cooking and lighting fuels such as firewood and kerosene.