Energy

The KOSAP programme is part of Kenya Vision 2030, the long-term development blueprint for the country. (Image source: d.light)

d.light, a provider of transformational household products and affordable finance, has been selected to take part in the Kenyan Government’s initiative to expand the uptake of off-grid solar home systems and clean cookstoves in underserved counties

The Kenya Off-Grid Solar Access Project (KOSAP) is a flagship project of the Ministry of Energy, financed by the World Bank, that aims to provide electricity and clean cooking solutions in the remote, low-density underserved areas of the country. It is part of the Government’s goal of providing universal electricity in Kenya, helping to pave the way for the realisation of Kenya Vision 2030.

According to World Bank 2022 data, 24% of Kenyans still lack access to electricity and more than 34% of the country’s rural population without access. Moreover, only 30% of the population have access to clean fuels and technologies for cooking, with the remainder at risk from using harmful fuels such as unprocessed biomass, charcoal, coal and kerosene.

d.light’s managing director for Kenya, Karanja Njoroge, remarked, “Kenya has achieved sustained economic growth and social development in the last decade or so, and its economy is the largest and most developed in eastern and central Africa. However, many of its citizens still live without access to electricity, especially in rural areas outside the major towns and cities. These areas are also vulnerable to the effects of climate change, including droughts and desertification.”

Supporting rural Kenya

THE KOSAP programme, launched in 2018, is targeted at rectifying these deficiencies and consists of four components with a total budget of US$150mn (provided as a grant from the World Bank). The four components are focused on mini grids for community facilities, businesses and households; standalone solar home systems and clean cooking solutions for households; standalone systems solar home systems and clean cooking solutions for households; standalone systems and solar water pumps for community facilities; and capacity building for development, planning and regulation of power and renewable energy at a county government level.

d.light has been selected to participate in the second component which has been allocated US$15.7mn. d.light will provide solar power and clean cooking solutions to more than 150,000 people, with its solar products sold on an instalment plan via the company’s ‘PayGo’ service.

“Kenya was one of the first African countries in which d.light launched operations back in 2008, and our headquarters for Africa is in Nairobi,” continued Njoroge. “With our combination of tried-and-tested, market-leading products, established distribution channels, and our secure ‘PayGo’ payment system, d.light is ideally placed to participate in this latest drive to extend clean, safe, renewable energy to the people and communities in rural Kenya who need it. Thanks to the KOSAP initiative, a better quality of life is within reach for many Kenyans.”

In July, d.light announced that it had closed a securitisation facility to scale up its PayGo consumer finance in select African countries. Click here to discover the full story. 

Scatec will seek to replicate the success it has had in previous hybrid solar and battery storage projects at Kenhardt. (Image source: Adobe Stock)

Scatec ASA, a renewable energy provider, has reached financial close for the Mogobe battery energy storage system (BESS) facility in Northern Cape, South Africa

The 15-year power purchase agreement was awarded to Mogobe BESS under the first window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) which will see Scatec receive payments for making the storage capacity available for the National Transmission Company of South Africa (NTCSA).

“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to the sustainability of South Africa’s current and future energy system,” said Roar Haugland, EVP sub-Saharan Africa, Scatec. “By unlocking more grid capacity, we are enabling further electricity access, as well as enabling more renewable energy grid connections in years to come.”

A milestone for South Africa

With a total capex for the 103MW / 412MWh project at US$170mn, Scatec’s EPC contract account for approximately 83%. The project, which will see NTCSA utilise the capacity to balance the grid, will be financed by US$154mn of non-recourse project debt with Standard Bank of South Africa acting as mandated lead arranger, and the remaining equity from the owners.

“This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country,” commented Scatec CEO Terje Pilskog. “The Mogobe BESS project is a first of a kind and reaffirms our standing as a leading renewable energy player in South Africa. We continue to see attractive growth opportunities in the market based on the need for growth in power generation, our strong position in the country and our strong and competent local team.”

“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” added Rentia van Tonder, head: power – corporate and investment banking, Standard Bank of South Africa.

This step towards a sustainable future for South Africa is a timely announcement given the recent warning from IRENA that the world is set to miss a key climate target without immediate change. Click here to discover the full story.