Catalysing Bankability of East African Mini-grids by Integrating Transport Energy Demand

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Innovate UK
Innovate UK
Innovate UK
Innovate UK
Innovate UK

£3,730,005

Feb. 1, 2023

Jan. 31, 2025

This project offers the potential to accelerate clean energy access in Kenya and sub-Saharan Africa, including for disadvantaged and marginalised groups, and supporting gender equality, by creating new business models for "**Integrated Mini-grids**". In Kenya, energy off-take from mini-grid projects averages 40% (Knights Energy). Such projects often remain non-commercial, and require government funding, resulting in persistently low energy-access-rates (71.4%, World Bank). Mini-grid projects in Kenya average around 60kW, an investment of only £50-80k, and too small to be attractive to many private investors.

The project directly targets **energy access** for presently unserved energy users, including marginalised, disadvantaged and groups such as women, the elderly and persons with disabilities. It does this through rendering rural mini-grids investable, and providing the means (software) for developers and investors to identify portfolios of many such projects, which will positively impact many more villages than presently reached by Kenya's rural electrification programmes.

The primary energy input to the energy systems envisaged is solar, with some potential for small wind farms also. Clean energy technology is envisaged also on the demand-side of the energy systems, including electric vehicles. In addition to providing energy access, deployment of the business models envisaged will displace reliance on fossil-fired transport energy, leading to reduced local pollution of air, soil and water, and reduced CO2 emissions from the burning of fossil fuels both in the production of electricity, and in the distribution of fuel. In addition static battery energy storage systems will be investigated to help balance the demand for energy in mini-grids with the timing of solar/wind supply. Finally, Demand Side Response (DSR) and other efficient demand management practices will be investigated for their balancing potential.

The Project Partners include two Kenyan-headquartered and two European partners. **New Resource Partners** (NRP) is a local clean energy innovation business, advising national and local governments, and investors in clean energy, working in the UK, Europe and India. **Sustainable Transport Africa** (STA) is the in-country lead, an NGO whose core mandate is to promote energy access for the underprivileged through sustainable transport solutions. **VAI Capital** is an investment and fund manager specialised in sustainable transport, with focus on financing integrated energy and e-mobility projects for financial return and climate, economic and social impact. **Knights Energy** (Trading Name of Knights and Apps Ltd.) is a clean energy project developer, with a total installed capacity of over 12MW installed across East Africa.