Powerhive Kenya

Around 90,000 people living in rural Kenya are set to gain first-time electricity access after REPP approved a US$3m results-based financing facility for this first-of-kind mini-grid project.

Developer Powerhive is currently building 100 ground-mounted mini-grids that will supply clean energy to rural communities in the Kisii and Nyamira regions of south-western Kenya over the next five years.

So far, the company has installed 13 operational grids with a total generating capacity of 130kW, resulting in over 11,000 people being connected to electricity for the first time.

Once they are all operational, the mini-grids will provide up to 1MW of generating capacity, and will directly support Kenya’s NDC target to abate 30% of its greenhouse gas emissions by 2030.

Electricity is sold directly to local households and businesses by developer Powerhive East Africa Ltd on a prepayment basis. Each system will include batteries to offer reliable power to customers.

REPP’s financing facility is enabling Powerhive to complete the successful roll-out of Phase 2 and grow to a sufficient scale to attract additional debt and equity finance, and continue building mini-grids in Kenya.

Up until 2016, mini-grids were not licensed but “tolerated” in Kenya. Powerhive broke new ground when it became the first private company to be licensed for developing mini-grids. The success of the venture is expected to make it easier for other private developers to operate in Kenya and will assist in the creation of a sustainable business model.