rural electricity access kenya project concept and introduction august, 2007 green power kenya

RURAL ELECTRICITY ACCESS KENYA

Project Concept and IntroductionAugust, 2007

GREEN POWER KENYA

2

OVERVIEW OF OPERATIONAL AREA IN KENYA

Representation of a 1,000 HH community

200 HH village

100 kW generation

Radius = 7km

Location*:•The projects are located in Central Province, at the Southern face of Mount Kenya (see map)•Accessible via Kianyaga town, a 3.0 hour car ride from Nairobi.

Project Sites

Population and Demographics:

•Total beneficiaries estimated at 50,000 people with an average of 5.0 persons per household; average population density at 550 per square-km.•17 CBO’s with 1000 household membership identified with (see box in left-bottom corner)•Life expectation is relatively long at 65 years; no accurate data available on HIV status within the operational area.

Economics:•Small farmers with an average of 1 acres per household•Most households are within the tea- and coffee zone and produce tea, coffee, maze, beans, banana’s and hold cattle cows and chicken•Average income per household is 800-900 USD per year

•80-90% completed primary education •50-70%completed secondary education

Education:

•Less than 4% of the households electrified•Telecommunication networks cover the area.•50% has access to water for domestic usage

Connectivity:

* Project locations include Kirinyaga District, Embu District

Transformer

3

PROJECT MISSIONS AND GOALSE

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ents

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ust

ain

ed D

evel

op

men

t Self - Governance

Hard Assets

Technical Capability

CommunityInvestments

Create local governance mechanisms based on collaborative social- and economic values.

Generate monetary assets (power plants, distribution systems and factories) which provide access to formal credit markets and centralize development initiatives to a local level.

Manifest business- and management expertise to operate and maintain commercial enterprises. Social- and economic capacity building via scale-up initiatives.

Create decentralized social investment opportunities (i.e. education facilities and infrastructure) through the control and isolation of fund channels which are presently inefficient (kerosene, candles, battery charging)

4

A THREE-PHASE APPROACH

•Agreement, community contribution and post-valued labor create sustainability and filter governance structures. •Independent Power producer- and distributor.

Self - Governance

Hard Assets


Community Investments

Goals / Milestones:

PHASE I: PILOT PHASE II: ROLL OUT PHASE III: ENHANCE

•10 prime structures of 100kW generation facilities•One fully operational 100kW-1000 connection project.

•In-house know-how and expertise to design and construct prime structures.•Business management basics

•Awareness of economic structures and access to credit markets.

•Filtered governance structure translates and expands itself through co-operative relations with succeeding CBO’s.•Cooperative of Independent power producer- and distributors

•Ten 100kW-1000 connection facilities.•2 MW plant prime structures•Design of commercial platforms

•In-house capacity to design, produce and install energy pilots, controls and distribution networks

•Establishment of social investment committees which govern development initiatives

•Cooperative supports expansion and replication. •Social investment committees support education, infrastructure, social welfare and health programs•Electricity cooperative

•2 MW generation plant•10 100KW commercial platforms•Private grid extension.

•In-house capacity to design, produce and install MW energy pilots.•Training and maintenance programs. Operation and management programs.

•Locally governed development initiatives

5

ORGANIZATION STRUCTURE

HH 2HH 1 HH 3 1,000 HHs

Social Investments Committee

3 Representatives Appointed by the Local Board

Operations Committee

4 Full-Time (Paid) Staff Supervised by the Board

10 Elected Community Representatives

Local Board - 1

Management

Collections

Engineering

Finance

HH 2HH 1 HH 3 1,000 HHs

Social Investments Committee

3 Representatives Appointed by the Local Board

Operations Committee

4 Full-Time (Paid) Staff Supervised by the Board

10 Elected Community Representatives

Local Board - 2

Management

Collections

Engineering

Finance

Green Power LTD Executive Board

1 Representative from each Community - Total of 70%Robert Mutsaers and Nyaga Ndiga– Total of 30%

10 – 17 Local Boards

Local Partners:•GreenPower – NGO

•Sintronics (Control Systems)•Numerical Engineering (Turbine Manufacture)

6

TIMELINE

2004 20102005 2006 2008 20092007

Green Power LTD: Robert and

Nyaga

First 100kW generators

successfullytested

First primary structure

completed

TARDA grants

35k Euro

Primary structures completed in 3

sites; 7 others are underway

Liberty grants 30k Euro for

finalization of pilot generation project

French embassy granted 50k Euros for finalization of pilot distribution

project

Robert selected as

Echoing Green social entrepreneur

fellow

Completion of first mini

grid and pilot

TODAY

2011 2012

PHASE I: PILOT PHASE II: ROLL OUT PHASE III: ENHANCE

Start prime structures for

2 MW generation, commercial

platforms, and micro-hydro

manufacturing shop

3 more projects are finalized, 6 are pending mini-grids

All 10 projects

are finalized

Construction of MW plant and commercial

platforms

Interconnect grids and connect to MW

generation plant

Finalization of MW

generation plant and

commercial platforms

7

•Agreement, community contribution and post-valued labor create sustainability and filter governance structures. •Independent Power producer- and distributor.

Self - Governance

Hard Assets



Goals / Milestones:

•10 prime structures of 100kW generation facilitiesOne fully operational 100kW-1000 connection project.

•In-house know-how and expertise to design and construct prime structures.Business management basics

•Awareness of economic structures and access to credit markets.

PHASE I: Ten prime structures and one 100KW-1000 connection Model

Financing :

•Prime structures •100KW generation •Control units •Mini Grid •Transformers and switch gear

100KW-1000 Connection project

•Weekly lectures with local communities•Technical training of local skilled laborers•Theoretical training at polytechnic Kenya•Evaluation Study

Capacity building

•Post valued labor agreements towards finalization of Prime structures and core distribution network•Post valued labor agreements installation generation pilot and controls.•Post valued labor design, construction, assembly and installation of generation and distribution systems.•Land allocation and license agreements•Investment return agreements

Implementation

COMPLETION EXPECTED AS OF NOVEMBER 2007

Total financing need for Phase I forecasted: 300 Thousand USD

8

Self - Governance

Hard Assets



Goals / Milestones:

•Ten 100kW-1000 connection facilities.•2 MW plant prime structures•Design of commercial platforms

•In-house capacity to design, produce and install energy pilots, controls and distribution networks

•Establishment of social investment committees which govern development initiatives

Financing :

•Prime structures, 100KW generation •Control units, Mini Grid-1000 Connections •Transformers and switch gear

Nine 100KW-1000 Connection project

•Prime structures•Commercial platforms

MW-Prime structures and commercial platforms

•Post valued labor agreements of Generation plants, distribution networks, MW-prime structures and commercial platforms•Post valued labor installation generation pilot and controls.•Post valued labor GP, design, construction, assembly and installation of energy systems and commercial platforms.•Land allocation and license agreements•Investment return agreements

Implementation

PHASE II: nine 100KW-1000 Connection projects and MW-Prime Structures

Total financing need for Phase II forecasted: 3 Million USD

•Weekly lectures with local communities•Technical training of local skilled laborers•Theoretical training at polytechnic Kenya•Evaluation study

Capacity building

•Filtered governance structure translates and expands itself through co-operative relations with succeeding CBO’s.•Cooperative of Independent power producer- and distributors

9

PHASE III: 2MW Generation Plant, Substation and Ten Commercial Platforms

•Cooperative supports expansion and replication. •Social investment committees support education, infrastructure, social welfare and health programs•Electricity cooperative

Self - Governance

Hard Assets



Goals / Milestones:

•2 MW generation plant•10 100KW commercial platforms•Private grid extension.

•In-house capacity to design, produce and install MW energy pilots.•Training and maintenance programs. Operation and management programs.

•Locally governed development initiatives

Financing :

•Structures •Equipment

Ten 100KW-Commercial platforms

•Generation pilots and controls•Substation and high voltage feeding line•Interconnection of isolated grids

MW-Generation Installation

•Post valued labor agreements of Generation plants, distribution networks, MW-prime structures and commercial platforms•Post valued labor installation generation pilot and controls.•Post valued labor GP, design, construction, assembly and installation of energy systems and commercial platforms.•Land allocation and license agreements•Investment return agreements

Implementation

•Weekly lectures with local communities•Technical training of local skilled laborers•Theoretical training at polytechnic Kenya•Evaluation study

Capacity building

Total financing need for Phase III forecasted: 9 Million USD

10

FINANCIAL- AND OTHER PARTNERS PHASE I – 2005 - Jun 2008

Financing 100KW project

Training / Consulting

•Local communities (GP)

Organization Type Amount Purpose

•Equity Investment

$100k •Feasibility, Prime structures and skeleton network

•Liberty •Grant $20k Euro •100KW Generation Facility

•TARDA* •Grant $35k Euro •100KW Generation Facility

•Liberty •0% Loan $100k Euro •1000 connection Mini-Grid

•French Embassy •Grant $50k Euro •1000 connection Mini-Grid

•Green Power (NGO) •Organizational structuring

Organization Duration Purpose

•Over 2 years

•Green Power (NGO) •Technical- and maintenance•Over 1 year

* TARDA = Tana and Athi River Development Authority, Kenya

•University UQAM/ CAN •Evaluation and impact assessment•Over 2 years

•Netherlands Embassy •Grant $25k Euro •Workshop

•Linklaters •Legal Assistance•Over 2 years

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FINANCIAL- AND OTHER PARTNERS PHASE I – 2005 - Jun 2008

Financing nine 100KW projects

Total Need: Euro 3 m




•Equity Investment

$100k•Feasibility, Prime structures and skeleton network

•GTZ

•NRECA

•Liberty

•Mlinda Foundation

•Support nine-1000 connection Distribution networks (Under negotiation for interest free loans)

•Green Power (NGO)


•Continuous

•NRECA•Technical capacity building

•3 Years

•Support nine 100KW generation installations and substations (Under negotiation for grant support0

•Capacity building (Under negotiation Pro-Bono assistance)

•Support for Workshop and construction of Prime Structures. (Under negotiation)

•Good Energy •Support nine 100KW/1000 connection projects (Under negotiations for low interest loans)

•ACUMEN Fund •Support nine 100KW/1000 connection projects (Under negotiations for low interest loans)

•Linklaters •One year •Legal assistance•Capacity building

•University UQAM/ CAN •Evaluation and impact assessment•Over 2 years

12

COLLABORATION IN PHASE II – TO BE FINALIZED BY END OF 2009

Financing

Total Need: Euro 10 m




•Equity Security

•GTZ

•NRECA

•Liberty

•Mlinda Foundation

•Support High voltage feeding line. (Suggested)

•Support MW power plant. (Suggested)

•Capacity building (Under negotiation Pro-Bono assistance)

•Support Commercial Platforms. (suggested)

•USAID •Support MW Generation Plant and commercial platforms. Suggested)

•Green Power (NGO)


•Continuous

•NRECA •3 Years

•Linklaters •One year

•University UQAM/ CAN •Over 2 years

•Technical capacity building

•Legal assistance•Capacity building

•Evaluation and impact assessment

rural electricity access kenya project concept and introduction august, 2007 green power kenya

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