Microsoft’s Co-Founder Paul Allen to Sell His Mini Solar Plants in Kenya

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In recent years, Microsoft’s Paul Allen has been mini solar plants in Kenya through his private company. Mr Allen is now planning to sell the 10 small-scale solar plants based in Kajiado and Samburu. Through Vulcan, his multi-billion company, Mr Allen has been using solar power as a social tool and transforming lives by connecting businesses and homes in the regions to solar energy. Vulcan has been running power mini-grids in the country for the last two years. Mr Allen’s objective was to trigger businesses to invest in off-grid power solutions, empower rural communities and use the power projects to demonstrate the business viability of rural mini-grids to investors. Lighting up rural areas will boost industrialisation and in turn trigger growth and development.

Nairobi-based PowerGen has sought permission from the energy regulator to generate and sell power to houses using solar energy microgrids while US-based PowerHive is yet another firm in the Kenyan market that sells electricity directly to consumers.

Mini-grids work well in densely populated regions. Distribution lines cover short distances hence work well with the high concentration of houses in a small area. Small grids are between 10KW and 10 megawatts power plants. Distribution lines connect a small number of consumers beyond the scope of the national power supply grid.

Mini-grids are the solution to Africa’s problem of lighting small off-grid towns where stretching national power grids is not cost-effective. These mini-grids are efficient especially if they rely on solar-powered sources. This is according to energy experts on the importance of micro and mini-grids.

The 10 small scale power grids are situated in Olenarau and Olturoto in Kajiado and Samburu towns of Marti, Opiroi and Barsaloi. These power grids are operated and remotely maintained by UK-based Steama.co with the use of smart meters, making it easy to track usage and instalment. Mr Allen's Kenyan small scale have a limit of between 1.5 kilowatts (kW) and six with every unit serving a maximum of 62 clients.

Kenya's renewable energy sector has as of late attracted many business people many of them wanting a piece of the nation’s solar based, wind and geothermal energy.

The standard income from power sales to consumers from the remote areas remains at Sh535 ($5.34) every month with the biggest customer consuming power worth KES 1,550 ($15.38) a month to month while the least consumer uses power up to KES Sh38.  These costs are higher than those incurred by Kenyan households connected to solar energy to the national grid. This is because the central power transmission on the national grid is subject to regulation from the nation’s Energy Regulation Commission hence reduced tariffs. Partly, the higher tariffs on other smaller private grids is also due to lack of economies of scale the national power distributor enjoys. Also, because customers do not pay upfront charges for connection to mini grids Charges for solar power connected to the national grid at Sh12 per unit, a significant difference we have there.

According to Forbes magazine, The Microsoft co-founder is ranked as the 21st richest person in the world with a net worth of $18.9 billion, which is around 2 trillion KES. Mr Paul’s private company Vulcan has invested in Spotify, Alibaba group and Uber. The company is very keen on injecting capital in Kenya's green energy projects.

In a bid to respond to the plight of the people of north-eastern Kenya, the government is planning to set up about 23 solar energy mini-grids to provide electricity in the region. The move is meant to speed up growth in the region to catch up with the rest of the country.

The Renewable Energy World reported that over 600000 households will be connected to clean renewable energy using the 260 watts 210,210 solar panels, each under a separate rural electrification programme. This particular project which upon completion will generate about 9.6 megawatts of clean energy is expected to cost about 37 million US dollars. The project is fully funded by the 

French government.

This project will be completed by the end of next year and is expected to cost125 million US dollars will be financed by the Chinese government, which has more than half a dozen projects in the region. Kenya is one of the leading states in sub-Saharan in the utilisation of solar power. Earlier this year, the Kenyan government connected over 4000 primary schools to solar energy grid in a revolutionized education objective; the power is meant to provide electricity for the digital learning system where pupils are expected to use tablets the government promised tablets to acquire education. 

Vulcan Impact Investing is focussed on the provision of off-the-grid solar power in Africa and has operations in sub-Saharan countries such as Botswana, Tanzania, Uganda and Kenya.

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