Component 1: Mini-grids for Community Facilities, Enterprises, and Households

As the target counties are not served by the national grid, mini grids will be constructed to be the main source of energy. A total of 120 mini grids will be constructed throughout the 14 Counties. The mini grids will then be used to provide electricity to community facilities, enterprises and households.

Mini-grids are mostly suited for rural towns/larger villages that (a) are relatively remote and therefore unlikely to be served by the national grid, (b) are relatively densely populated, and (c) have expected loads that justify the mini-grid investments as opposed to deploying individual household systems. This usually requires a certain size (for example, 100 households plus) and sufficient existing or potential business and institutional loads.

The sites for the construction involved consultations with the County Governments in the 14 Regions. Counties were requested to provide possible sites for the construction of the min grid based on the following criteria.

Ability to serve 100-700 prospective users
Ability to attract demand of 20-300 kilowatt
The final sites will be identified after feasibility study is undertaken by the project.

Depending on the number of users to be supplied and the service level for each type of use, the mini grid will combine solar PV, battery storage and thermal units running on diesel.

Kenya Power and Lighting Company (KPLC) (READ MORE ) is responsible for implementing this section and the mini-grids will be developed under a public-private partnership (PPP). Under this arrangement a Private Service Provider (PSP) will be responsible for construction and partial financing of the generation systems and distribution network for each mini-grid.

The PSP will sign two long-term contracts with KPLC, 7-10 years PPA for the operation and maintenance (O&M) and for recovery of the privately finance part of the investment. A 7-10 years’ service contract for O&M of the distribution network will be signed with the successful contractor. After the recovery of the private investments, all assets (generation and operation) will be in GOK ownership.

Customers supplied through mini grids will be KPLC customers and will pay the same tariff for each category charged.