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

by Robin Okuthe

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.

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