Robin Okuthe, Author at Miale Solar

Miale’s Answer to Kenya’s Costly Electricity and Blackouts

November 25, 2024by Robin Okuthe Robin Okuthe No Comments

When nightfall descends in Kenya, it’s less often because of sunset. For a long time, the country has faced up to a ‘chronic’ energy crisis marked by fickle electricity supply and recurrent blackouts.

From bustling city life to sleepy rural villages, the power outages have, occasionally, left households in darkness, factories at their downtime, and essential services providers in panic. The infamous countrywide blackouts in August and September 2024 exposed just how fragile Kenya’s power grid is becoming and why a shift to solar power is certain.

In the depths of these challenges lurks an opportunity — a changeover to solar energy. According to Miale Solar’s Chief Executive Stephen Adwong’a, solar energy is a timely solution that, besides promising reliability, offers long-term cost savings and sustainability.

Miale Solar has taken the front position of this switch, providing versatile solar energy solutions that are lighting the pathway to a brighter, more resilient future.

The Extent of Kenya’s Energy Crisis

Kenya generates an impressive 86% of its electricity from renewable sources, including hydropower, geothermal, and wind. Yet, the overdependence on hydropower, besides an agonizingly aging transmission network, makes the energy system highly susceptible to breakdowns.

On August 25, 2023, Kenya went through its longest nationwide power outage, which lasted for over twenty-four hours. The September 2024 national blackout incident also lasted several hours, affecting industries, schools, and essential services across the country. Unfortunately, such disruptions are far from sporadic. In 2022 alone, Kenya Power, the national utility company, reported over 1,500 outages as a result of equipment failures, vandalism, and poor maintenance.

Such disruptions are costly. The Kenya Association of Manufacturers (KAM) decries that power outages cost the economy in the neighborhoods of $2 million daily in lost productivity. Organizations that depend on diesel generators have to contend with operational costs that are tenaciously hitting the roof, with diesel prices having increased by 12% in 2023 alone.

The costs of electricity are also comparatively high. The global average price of electricity ranges from $0.1-0.15 per kWh compared to Kenya’s from $0.21-0.26 kWh. For commercial users, the cost of electricity was $0.170 (Sh18.88) per kWh in Kenya compared to a global average of $0.124 (Sh15.10) per kWh, as of September 2024. This indicates that in comparison to countries in the Common Market for East and South Africa (COMESA) economic trading bloc, which have more equitable and affordable electricity pricing, Kenya is at a disadvantage due to its exorbitant electricity rates.

Solar Energy as the Bonfire of Hope

Solar energy is becoming the dependable and sustainable substitute for Kenya’s ‘struggling’ grid, giving the country an advantage over its African peers. Solar is now more affordable than ever owing to an 80% decrease in installation costs over the past ten years, according to the International Renewable Energy Agency (IRENA).

Figures from the Energy and Petroleum Regulatory Authority (EPRA), the national energy regulator, show that, as of December 2023, Kenya had a total solar installation capacity of about 410.4MW, of which 210.3 MW were grid-connected and 196.2 MW were captive. In Ghana, solar energy makes up 1% of the country’s energy mix, and the government encourages the use of solar by offering tax breaks and subsidies. As of 2023, Ghana’s total installed solar power capacity is 152.3MW. In the case of Nigeria, initially beset by one of Africa’s most unstable grids, has given room to the rise of private sector-driven solar solutions as the mainstay of rural electrification initiatives. As of 2023, the country’s solar energy capacity ascended to 112MW, a remarkable upsurge compared to 2014.

Braced by resurgent solar solutions providers like Miale Solar, Kenya is ahead of its peers. According to EPRA, The government’s goal of providing energy to all citizens by 2026 depends on off-grid solar power. The realization of this goal will depend considerably on how industry players like Miale Solar take to the space to react to the current energy crisis. In effect, the decentralized nature of solar energy provides unsurpassed resilience.

What Miale Solar is Doing

The energy crisis in Kenya is not an insoluble hurdle. The country has the means and ways to upset outages, cut carbon emissions, and attain energy independence with solar energy at the forefront.

One project at a time, Miale Solar is leading the charge. Miale’s influence is seen in everything from community-focused projects to industrial behemoths like Home Tena Quarry. Kenya’s aspirations for a resilient and sustainable energy future align perfectly with the company’s mission.

Miale Solar has been instrumental in enabling communities, businesses, and institutions to become less dependent on grid electricity with its creative solar solutions. In 2024, Miale installed a 402 kWp grid-tied solar PV system at Home Tena Quarry to lessen reliance on costly diesel generators and the unstable grid. With an annual output of over 659,579 kWh, this system now covers around 50.4% of the quarry’s energy requirements while reducing carbon emissions by up to 253,365 kg CO2e. The outcome? Considerable cost reductions and improved operational effectiveness.

Additionally, Miale’s installation of a 1.23 MWp solar PV system has allowed Naivasha Water and Sewerage Company to reach previously unprecedented energy efficiency. The project, which was funded by a 12-year Power Purchase Agreement (PPA), exemplifies Miale’s dedication to providing customized, reasonably priced solar solutions.

Solar energy campaigns by Miale Solar have seen businesses across Kenya slowly but surely recognize the significance of solar energy, not just for reliability but also for its financial and environmental benefits.

A diversified strategy is needed to address the energy pricing crisis in Kenya, such as investing in solar energy, which is benefiting greatly from the narrative surrounding climate change. Compared to Kenya Power’s $0.19 per kWh rates, solar energy costs in Kenya are substantially lower, ranging from $0.08 to $0.12 per kWh. Over time, solar systems pay for themselves through reduced energy bills.

According to Adwong’a, Miale Solar’s chief executive, with increasing consumer awareness, businesses adopting solar energy are seen as environmentally responsible, enhancing their brand reputation.

“Solar energy provides autonomy from an unstable grid. Businesses can operate seamlessly, even during nationwide blackouts,” stated Adwong’a.

Already, Miale Solar has seen the light and currently advocates solar energy for rural and off-grid communities in Kenya’s rural areas, where 70% of the population resides, and bears the brunt of energy poverty. Here, solar energy has emerged as a lifeline.

Miale’s community-driven initiatives, such as solar installations in schools and hospitals, are expected to bridge the critical energy gap. As it empowers rural areas with solar energy, the company is determined to be the agent of change that stimulates socioeconomic development and environmental conservation. This will be a substitute, rather than a challenger, to state programs such as the Kenya Off-Grid Solar Access Project (KOSAP), which aims to bring solar electricity to 1.3 million people, shrinking dependence on kerosene and firewood.

Challenges to Solar Adoption

Despite its advantages, Kenya confronts challenges in adopting solar energy. As clarified by Adwong’a, companies will still need to grapple with high initial costs, financial gaps, and awareness.

“When it comes to high initial costs, although costs have decreased, many people are still put off by the initial outlay required for solar installation. In addition, widespread adoption is hampered by a lack of accessible, reasonably priced financing options. Let’s also not forget that the long-term advantages of solar are not well known to many prospective consumers,” explains Adwong’a.

Miale Solar uses creative financing strategies, such as lease-to-own agreements and PPAs, to address these issues. Additionally, the organization runs community awareness initiatives to inform homes and businesses about the advantages of solar energy.

Therefore…

Making optimal use of the Kenyan sun’s abundant power is the answer to the country’s faulty electrical grid. Solar energy is the cornerstone of a contemporary, sustainable energy ecosystem, rather than a band-aid solution. Businesses, organizations, and communities are encouraged to join the solar revolution by Miale Solar. One solar panel at a time, we can work together to brighten Kenya’s path to progress.

Call us now to learn more about our projects and solutions.

More Kenyan Schools and Hospitals Turning to Solar Power

November 22, 2024by Robin Okuthe Robin Okuthe No Comments

Kenya’s schools and hospitals are grappling with unrelenting energy crises — one characterized by ever-increasing electricity bills, persistent blackouts, and an over-reliance on non-sustainable energy sources. At the heart of this crisis lies a clear and urgent opportunity: the shift to solar power.

Leading the charge in solar adoption in Kenya is Miale Solar, a leading innovator in the solar energy sector. According to Stephen Adwong’a, the company’s chief executive, solar energy shouldn’t just be viewed as a substitute; it’s a necessity for schools and hospitals pushing for operational efficiency, cost reduction, and environmental sustainability.

“Every indication suggests that solar technology will soon be widely adopted by all schools and hospitals in Kenya. As knowledge grows, training becomes more accessible, perceived and actual financial risks decline, and solar technology gets more affordable, all of the aforementioned challenges can be resolved,” Adwong’a said.

The grave weight of energy costs

Current trends indicate that institutions all around Africa and the rest of the world are adopting solar energy as the key to a sustainable future. For Kenya, efforts have been made to expand access to power and lower costs through programs including Vision 2030, the BIG-4 Agenda, and universal electricity access through the Last Mile Connectivity Program to guarantee dependable and climate-resilient energy systems. Already, a concrete foundation for cleaner and more sustainable energy integration has been established by targeting a 100% transition to renewable electricity by 2030 (88% in 2022).

Miale Solar is responding by laying out an unquestionable path for boosting solar adoption countrywide.

Commenting on why schools and hospitals must act now, Adwong’a said: “Solar energy is not just cheaper in the long run; it’s more reliable and predictable in our Kenyan scenario. By switching to solar, institutions can reduce their energy costs by up to 70%, freeing up money for other priorities like hiring employees or buying necessary equipment.”

More studies show that utilizing solar technology, such as commercial rooftop solar panels, can drastically cut electricity costs by up to 70%.

Miale has set up a number of installations in different hospitals. Tenri Hospital is one example; its activities are powered by a 72 kWp Grid-Tie Solar PV Plant, which guarantees consistent electricity. The initiative, which is funded by a 10-year PPA, sustainably reduces costs and increases production. Other hospitals are Lugulu Hospital (30 kWP), Nightingale Hospital in Kisumu (80 kWP), and Outspan Hospital (185 KwP grid-tied).

Miale Solar pursues a multi-sectoral approach to solar installations. Other than hospitals, Miale Solar’s installation of a 1.23 MWp solar PV system at Naivasha Water and Sewerage Company is expected to reduce energy costs by over 50%, demonstrating the potential for similar savings in schools and hospitals. At Home Tena Quarry, Miale installed a 402 kW solar PV system, which has the potential to cut carbon emissions by 253,365 kg CO2e annually. Such initiatives showcase Miale’s ability to design and execute impactful solar projects tailored to client needs.

Adwong’a asserts that solar systems, particularly when combined with battery storage, offer a continuous power supply, removing the interruptions brought on by blackouts. In his view, an optimal changeover to solar energy is imminent, bearing in mind that the prices of solar panels have plummeted, making them increasingly affordable, and cheaper to install in the long run.

The dramatic decline in the price of clean energy over the past few decades has been one of the most revolutionary technological developments. Over the past ten years, for instance, the cost of solar photovoltaics has decreased by 90% worldwide, onshore wind by 70%, and batteries by over 90%. Wright’s Law describes the “learning curve” that these technologies have followed. According to this theory, technology’s cost steadily decreases as its total production rises.

“Schools and hospitals can drastically lower their carbon footprints by implementing solar power, which is consistent with Kenya’s commitment to the Paris Climate Agreement,” Adwong’a stated.

According to a recent survey, Kenya has the fourth-highest household power costs in Africa. At the time, Kenyan households paid $0.222 (Sh24.65) per kWh for power, whereas the global average was $0.136 (Sh15.10) per kWh. The price covers every element of the electricity bill, including taxes, power expenses, and distribution fees. This amount is far higher than that of Tanzania ($0.10 per kWh) and Ethiopia ($0.06 per kWh), two adjacent countries.

These costs are more than just figures for hospitals and schools; they are the difference between financial catastrophes and balanced budgets. Many public schools, for instance, operate on shoestring budgets, and energy bills consume a significant portion of their operational costs. The proportion of primary schools receiving electricity increased from 56% to 94% between 2014 and 2016. While remotely located schools acquired solar photovoltaics, those closer to the grid network were connected to grid electricity. Today, over 65% of Kenyan secondary schools spend more than 10% of their yearly budgets on power alone, as per a 2022 Ministry of Education assessment.

A similar scenario applies to hospitals. Power outages can spell the difference between life and death since medical devices like ventilators, imaging machines, and lab instruments depend on steady electricity. According to a 2023 study by the Kenya Healthcare Federation, up to 20% of medium-sized hospitals’ operating costs were energy-related. The county government in Makueni County, for instance, pays roughly $13,000 a month for electricity for just one of its primary facilities, Makueni Level 6 Hospital, which sees 1,000–1,200 patients every day. To cut expenses, the county administration is looking into solar energy. Solar systems have the significant advantage of lowering long-term operating and maintenance expenses by eliminating the need for generators and providing savings over grid-provided electricity.

Solar energy is also an answer to sporadic blackouts. While Kenya has experienced periodic blackouts for decades, subtle evidence from industry data suggests that the situation could suddenly be worsening. In August and September 2024, for instance, nationwide blackouts forced hospitals to rely on costlier diesel generators and schools. While they are an essential backup, diesel generators are not a long-term answer. They cost upwards of $0.25 per kWh to operate and are a major source of carbon emissions. In the age of the green revolution, dependence on such non-sustainable technology is unacceptable for organizations entrusted with educating children and saving lives.

Miale Solar is Breaking the Barriers to Adoption

In the face of its glaring advantages, solar energy adoption must face up to hurdles, such as high upfront costs and limited awareness.

“Funding is one of the main obstacles”, Mr Adwong’a clarified, “to integrating distributed renewable energy into Africa’s healthcare system.” For instance, according to a recent assessment by Sustainable Energy for All (SE4All), it will cost $235 million to electrify Kenya’s healthcare institutions alone, of which $133 million will go to commercial facilities and $102 million to public ones. Long-term cost benefits are possible with on-site solar electricity, although initial equipment costs can be high.

Miale Solar is addressing these challenges head-on using innovative financing models like Power Purchase Agreements (PPAs) and lease-to-own options. This implies that a hospital with a PPA can purchase solar energy at a lower cost than grid electricity and without incurring any up-front expenses. This model guarantees both short- and long-term savings.

Therefore…

Switching to solar power is no longer an option; it’s a prerequisite as Kenya’s hospitals and schools tussle with soaring electricity costs and unrelenting blackouts. Miale Solar offers solar solutions for sustainable, cost-effective solutions that ensure reliability and align with global environmental goals.

With a track record of success and creative solutions, Miale is paving the way for Kenyan institutions. The question now is not whether or not hospitals and schools should use solar power, but rather when.

Let’s use “today” as the response. The sun is rising on Kenya’s energy future. Will your institution rise with it? For more information on how your institution can join the solar revolution, contact us at Miale Solar.