By NLM Writer
As debate on the future of national main power grid verses off-grid solar energy has heated up in Kenya after electricity distributor, Kenya Power, reported a decline in revenue due to growing shift to solar power systems by heavy-consuming industrialists.
The simmering debate has attracted the general public and energy experts across the country on online platforms with solar champions arguing that time is nigh for a solar revolution in the country.
In its latest annual report, Kenya Power reveals that some of its industrial customers are progressively shifting to own-generated solar power, eating further into its already troubled sales revenues.
Kenyans on social media platforms have accused the electricity utility of high electricity rates and taxes despite excess production of electricity by the East African country.
Kenyaâs electricity generation crossed a record 1 billion kilowatt-hours in October â adding financial burden on the distributor, which is already paying for huge volumes of idle electricity, a cost that is passed on to consumers.
But Mr. Frank Ochiengâ, the chief communications officer, Kenya Electricity Generating Company (KenGen) thinks that the dream of many Kenyans owning a mini solar power plant is farfetched as the installation, maintenance and associated costs are beyond the reach of many.
âThe first thing a potential customer is met with is a high installation bill, followed by an even higher maintenance and associated costs,â he notes.
According to Kenyaâs Energy Regulator, the Energy and Petroleum Regulatory Authority (EPRA), less than 1 percent of the countryâs energy mix is tapped from solar yet the country, located in the equatorial zones, has tremendous potential in solar energy.
Ochiengâ argues that cost factor and lack of technology might explain the slow growth in the solar energy sector. âKenya imports all the technology, including equipment and expertise, hence driving the cost further up above the global averageâ
According to Ochieng, while the sun may be free in Kenya, the cost of solar energy storage is beyond average Kenyans. The solar energy system requires batteries to store the energy for use in the nights and the rainy or less sunny days. He says the storage aspect is the most expensive component of the system.
As the debate rages on, Ochiengâ pours cold water on the excitement stating that more and more Kenyans will continue to rely on the grid as their sole supplier of electricity since the Solar is an evolving technology that attracts new modifications every year.
He advises that before giving into the âsolar switchâ mob psychology, which could be driven by influencers and solar supply companies, it is important for policy makers, potential investors and the general public to take a step back and objectively review the risks associated with solar technology.
But with Several firms, universities and industrial factories turning to solar photovoltaic (PV) grid-tied systems, some excited consumers have vowed to give the utility a wide berth and automatically switch to solar energy for internal use to ensure reliable supply and reduced costs.
In May, oil dealer Total announced its ambition to get to net-zero emissions by 2050. To achieve this, the company has, for the past two years, been installing solar panels on the rooftops of its buildings and convenience stores across Kenya.
The move by Total Kenya is a confirmation that some of Kenya Powerâs industrial customers are progressively shifting to own-generated solar power despite the high installation and maintenance costs of solar systems in the region.
Kenyaâs adoption of net metering, a concept that allows customers connected to the Kenya Power grid to own solar grids, and thus pay lower power bills, has not significantly helped the energy supplier. The concept has instead encouraged more consumers to install solar panels to push back energy to the grid for lower rates. This has forced Kenya Power to review the concept before fresh implementation.
Kenya is producing surplus electricity by an excess capacity of about 30 per cent of the 1,938MW peak demand. The East African country has an installed electricity generating capacity of about 2,766 megawatts (MW).
Elsewhere, the government of Zambia has signed an agreement with the World Wide Fund for Nature (WWF) to boost the development of clean energy in the country.
The Ministry of Energy Permanent Secretary Trevor Kaunda made the announcement and said that the deal is set to provide a platform for uniting efforts, expertise and resources aimed at harnessing opportunities that promote clean energy development and increase access to sustainable energy.
âThe government recognizes the potential damage to the environment that exploitation of energy causes,â said Kaunda.
Clean energy has already passed its economic tipping point. A 2019 report from the non-profit Rocky Mountain Institute found that it was cheaper to build and use a combination of renewables like wind and solar than to build new natural gas plants. A 2020 report from Carbon Tracker found that in every single one of the worldâs energy markets, itâs cheaper to invest in renewables than in coal.
In 2009, building a new solar farm was 223 percent more expensive than building a new coal plant. Now, itâs flipped: Electricity from a new coal plant is 177 percent more expensive than electricity from new solar panels. What caused the switch? Huge leaps in technological advancement.
From 1976 to 2019, the cost of a photovoltaic moduleâa solar panelâdropped from $106 per watt to $0.38 per watt. âOnce solar hit scale, it started having its own supply chain . . . and the module itself got a lot cheaper,â says David Feldman, a senior financial analyst at the U.S. Department of Energyâs National Renewable Energy Laboratory. And with that scale there was more research and development. âThe technology itself continued to improve in terms of efficiency, reliability, longevity, so there are all these other things in additional to scaling up.â
Meanwhile, the price of renewables could continue to decrease. âThereâs still a lot of opportunity for continued cost reduction,â Feldman says. The more solar scales up, the more prices will drop, he adds. (