NEWS Dr. Rebekah Shirley provides a roadmap for energy access in “The Conversation”

For the orig­i­nal piece, click here

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by Dr. Rebekah Shirley is Research Direc­tor at Pow­er for All and Vis­it­ing Research Schol­ar, at the Strath­more Ener­gy Research Cen­ter (SERC) at Strath­more Uni­ver­si­ty and both alum­ni and Post-doc­tor­al Fel­low at RAEL.

At least 110 mil­lion of the 600 mil­lion peo­ple still liv­ing with­out access to elec­tric­i­ty in Africa live in urban areas. Most are with­in a stone throw from exist­ing pow­er grid infrastructure.

In Nige­ria, Tan­za­nia, Ghana and Liberia alone there are up to 95 mil­lion peo­ple liv­ing in urban areas. All in close prox­im­i­ty to the grid. In Kenya about 70% of off-grid homes are locat­ed with­in 1.2km of a pow­er line. And esti­mates for “under-the-grid” pop­u­la­tions across sub-Saha­ran Africa range from 61% to 78%.

Besides ener­gy access being cru­cial for many basic human needs, these under­served pop­u­la­tions rep­re­sent a mas­sive com­mer­cial oppor­tu­ni­ty for cash-strapped sub-Saha­ran African util­i­ties. Elec­tric­i­ty providers could reach tens of mil­lions of dense­ly packed cus­tomers with­out the cost of a last-mile rur­al grid extension.

So, why aren’t these poten­tial con­sumers con­nect­ed to the for­mal grid?

Urban com­mu­ni­ties often face many chal­lenges in obtain­ing elec­tric­i­ty access. These range from the pro­hib­i­tive­ly high cost of a con­nec­tion, to the chal­lenges of infor­mal hous­ing, the impact of pow­er theft on ser­vices and socio-polit­i­cal mar­gin­al­i­sa­tion. In many cas­es, these obsta­cles are dif­fi­cult to address successfully.

How­ev­er, recent advances in dis­trib­uted renew­able ener­gy tech­nolo­gies mean a more afford­able, faster to deploy, clean­er alter­na­tive is at hand in Africa. One that can step in where pol­i­cy and util­i­ty reforms are wanting.

Barriers to grid connections

One of the major bar­ri­ers to elec­tri­fi­ca­tion is the cost of a grid con­nec­tion. A grid con­nec­tion in Kenya, for instance, is esti­mat­ed at USD $ 400 per house­hold. This is near­ly one-third of the aver­age per capi­ta income of a Kenyan.

Beyond pure cost bar­ri­ers, urban com­mu­ni­ties often can’t access ener­gy ser­vices for oth­er socio-eco­nom­ic rea­sons. For instance, not being metered because they don’t have a for­mal address. Or liv­ing in in an area that is dif­fi­cult to ser­vice – such as near flood plains or in infor­mal hous­ing settlements.

Cor­rup­tion among elec­tric­i­ty ser­vice providers, pow­er theft by cus­tomers and the estab­lish­ment of elec­tric­i­ty car­tels also com­pli­cates and lim­its elec­tric­i­ty access.

Final­ly, the util­i­ties them­selves face many chal­lenges in imple­ment­ing reforms to get more peo­ple con­nect­ed. Take the exam­ple of the Kenya Pow­er and Light­ing Com­pa­ny, which owns and oper­ates most of the elec­tric­i­ty trans­mis­sion and dis­tri­b­u­tion sys­tem. In 2015 it intro­duced a sub­sidised con­nec­tion fee of US $150. This was done through the Last Mile Con­nec­tiv­i­ty Project. In one year, this install­ment-based pay­ment plan led to a 30-fold increase in legal elec­tric­i­ty con­nec­tions in impov­er­ished neighbourhoods.

But the project was marred by cost over­runs and inflat­ed and mis­re­port­ed new con­nec­tion num­bers. On top of this, new­ly con­nect­ed house­holds often have very low con­sump­tion lev­els and low-income cus­tomers were often unable to make pay­ments, even at sub­sidised rates.

With­out the nec­es­sary infra­struc­tur­al devel­op­ment, experts argue that the pro­gram puts a strain on the tech­ni­cal, com­mer­cial and finan­cial resources of the util­i­ty. This means that the pro­gramme may find it dif­fi­cult to gen­er­ate rev­enue, recov­er costs or pro­vide the ser­vice intend­ed to new customers.

Decentralised renewables

Decen­tralised renew­able ener­gy tech­nolo­gies offer an impor­tant solu­tionfor “under-the-grid” elec­tri­fi­ca­tion. They are sim­ple, fast and agile. They have short instal­la­tion times, and offer a reli­able elec­tric­i­ty ser­vice for infor­mal settlements.

Pay-as-you-go solar sys­tems and appli­ances, for exam­ple, can pro­vide a much low­er bar­ri­er to entry. Com­pared to the high upfront con­nec­tion costs not­ed ear­li­er in Kenya, a 15-watt solar home sys­tem costs on aver­age USD $9 per month for 36 months after which point the house­hold owns its system.

The renew­able ener­gy sec­tor recog­nis­es this under-the-grid mar­ket. In fact, about 35% of solar light­ing prod­uct sales in Kenya are made in peri-urban areas. And it’s a good bet. Evi­dence shows that the will­ing­ness to pay for decen­tralised renew­ables is much high­er than a grid con­nec­tion because they are seen as more reliable.

Poli­cies to sup­port decen­tralised tech­nolo­gies include: inte­grat­ed ener­gy plan­ning that incor­po­rates these solu­tions, adopt­ing and enforc­ing prod­uct qual­i­ty con­trol stan­dards and pro­vid­ing finan­cial incen­tives – like reduced import duties for prod­ucts or local loan and grant programs.

These solu­tions show that with the right approach, and sim­ple inno­va­tions, Africa’s prospec­tive urban cus­tomers can final­ly get access to electricity.

Ben Attia, a Research Con­sul­tant with Green­tech Media, con­tributed to the writ­ing of this article

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