Whether it’s kick starting local off-grid energy projects in Kenya and Nigeria, or larger scale initiatives across the region, GE’s involvement in the Power Africa initiative is very much underway.
Michael Wanyonyi, CEO of Mibawa Suppliers is among the first $100,000 award winners in the new GE/USADF Off-Grid Energy Challenge, launched as part of Power Africa earlier this year. GE partnered with the U.S. African Development Foundation (USADF), a US government agency, supporting African-originated solutions that generate jobs, improve incomes, and raise standards of living. With the Challenge, more than twenty, $100,000 grants will be awarded over the next three years to African organizations with off-grid solutions that help power economic activity.
In rural Kenya, Wanyoni’s model provides Kenyan villagers with cheaper, safer, and more regular power supply. “We hope to go from 5,000 units now to 10,000 units by the end of next year,” says Wanyonyi, CEO of Mibawa Suppliers about his ‘rent to own’ solar scheme.
With Mibawa Suppliers’ IndiGo system, families make a small initial outlay of KS1,200 (around $14), for equipment and installation of a solar system with two lights and cell phone charging capability. Customers then pay a weekly charge of KS140 (around $1.6) through a scratch card until they own the system in full. The $100,000 Off-Grid Challenge award will help fund further growth of the scheme with a proposed doubling of units in the next 12 months.
Most customers previously spent up to $4 a week on kerosene, but could not shift to cheaper solar because of the set-up costs. As Wanyonyi says; “There are cost benefits but it is also a cleaner energy, better for health. It is helping local businesses and the performance of children in school with better light for study.”
Green Village Energy Group (GVE Group) is also receiving an award for their 18kw solar powered off grid project generating electricity for 140 homes at Egbeke, in Rivers state, Nigeria, an extension to an existing successful 6kw project.
“This award has been absolutely wonderful”, GVE Group Chief Executive, Ifeanyi Orajaka said. “It has given us the opportunity to commercialise the project concept and take it to the next stage.”
The other four Off-Grid Challenge award winners in this first award round include proposals to construct solar powered water points in rural Northern Kenya, to put into place a bio-gas digester in Nairobi, to set up a standalone cold storage facility to allow farmers in north central Nigeria to store their produce and to study the feasibility of a renewable hydro-electric power system.
Work has also started on making this vision of Power Africa a reality with the launch of the ‘Ghana 1000MW Project’ with a memorandum of understanding (MOU) to build a 1000 megawatts of power plant signed with the Ghana government.
“We are looking to put together something that is really innovative, the creation of a gas to power solution that can be a model for the region”, says GE Managing Director for Western Africa, Leslie Nelson.
GE is involved in two major wind projects in Kenya as part of the Government’s objective to increase Kenya’s power capacity by an additional 5000MW over the next few years. GE will supply Wind Turbines to the 60MW Kinangop Wind Park project which reached Financial Close in November 2013. GE is also developing the 100MW Kipeto Wind Farm and is arranging for the project to be financed through Power Africa in a deal valued at US$300M.
In Tanzania, GE has partnered with Jacobsen, a Norwegian EPC, to build the 150MW Kinyerezi (I) power plant for Tanesco, the Tanzanian power utility. GE will supply 4 Aeroderivative gas turbines. Construction has commenced on the plant.
GE Africa President and CEO, Jay Ireland feels 2014 will be another milestone year for GE in Africa and Power Africa. “I think one important aspect”, says Ireland, “is how we are tapping into local expertise. We can bring in the technology, but local people on the ground have the most valuable insights on what works best for Africa and how we can meet the power needs of the continent.”