What is stopping the proliferation of electricity mini-grids in off-grid Sub-Saharan Africa (SSA)? In one word: bankability. The investors, who are vital to widespread rural electrification, will not invest before they see a profitable business model for mini-grids demonstrated in real working conditions.
This is a thirty-month 'proof-of-concept' project in which two off-grid rural communities in Mbeya Region of Tanzania will be provided with an affordable and reliable supply of electricity, and easy, affordable access to electrically-powered "Productive Use Equipment" (PUE) such as agri-processing equipment for the workplace e.g. maize milling machines, commercial refrigeration for crops, fruit-juice processing equipment, and electric cooking facilities for the home, so that the project will:
a) create immediate demand for electricity by establishing 'anchor clients' for each mini-grid (thereby reassuring investors that RoI will accrue from the guaranteed use of mini-grid electricity)
b) create jobs, reduce post-harvest crop losses, adding value and volumes to crop sales, and generally creating wealth at village level (wealth which later translates into the purchase of more electrical appliances for the home and thus a greater demand for electricity).
This emphasis on the provision of affordable PUE for both the home and the workplace, along with more-affordable tariffs for mini-grid electricity, is now 'accepted thinking' among international aid agencies, but it has not yet been tested as a combined solution (what this project is calling "Super Mini-grids") in real working conditions in Sub-Saharan Africa.
The project will focus on economic impact, specifically those aspects which are linked to electricity demand in the local community: the development of female-led agri-processing enterprises at village level and the adoption of 'clean-cooking' practices in the homes of the communities. The project has a very female-centric focus: the use of clean-cooking technologies in the home (electric pressure-cookers) is the primary driver for carbon emission reductions, empowerment of women through new freedoms to engage in paid work, and reduced levels of smoke inhalation for women and children in the home; the development of female-led enterprises is a more assured path to the success of a mini-grid's 'anchor clients' (they are more successful, for longer, than their male-led equivalents).
At the end of the project, we will have hard evidence of the economic viability, the profitability, of the Super Mini-grid business model which we can take to the private sector investment community to enable finance for upscaling of the business model, and removing the need for further grant-funding.
Floating across rivers and streams to generate affordable, accessible renewable energy with less damage to the local ecosystem, HydroWheel is the world's first inflatable waterwheel. It emphasises lower costs, durability, easy installation and continuous power production. The innovation's commercial and impact potential in sub-Saharan Africa is further enhanced by the region's abundant hydro resources, where the installed capacity is estimated at 30.4 GW; 300 GW potential remains untapped.
The deployment of off-grid renewable energy systems is a cost-effective solution expected to contribute significantly to satisfying power needs, driving economic growth and industrialisation and reducing poverty throughout sub-Saharan Africa.
This project will determine how HydroWheel can commercialise and optimise the design of its innovation to provide an alternative (or complementary) technology to incumbent renewable energy technologies (including conventional pico-hydro, solar PV, diesel generators) and ultimately satisfy the electricity needs of under-served communities throughout SSA (starting with Uganda). This project is particularly determined to understand, test and ultimately sell to market segments that promote the productive use of electricity, further catalysing economic development, employment creation and productivity enhancements in rural areas.
Hydrowheel Ltd will: hone the design of the waterwheel, optimising the waterwheel pockets (paddles) and examining their suitability for manufacture in small textile workshops in sub-Saharan Africa; optimising specification and sourcing suitable generators and gearboxes in conjunction with an experienced waterwheel manufacturer; and running a small-scale trial and then larger trial in Knoydart, Scotland.
CREEC will be responsible for the Pilot Project Development phase in Uganda that involves literature review, community engagement (initial consultation and surveys of local communities), future project scoping, initial location screening, designing a pilot project and conducting technical field studies and finally conducting environmental and social impact assessments.
MicroGen will use its "ISMO" GIS tool to survey river valleys in the target areas, identifying sites which conform to the project's definition of 'potential' and provide market and industry knowledge to support business plan development, and to facilitate research.
Challenges Catalyst and Challenges Uganda will support HydroWheel to create a viable commercialisation strategy to exploit the innovation. This will include key activities such as market sizing of beachhead market; micro-segmentation and development of relationships with key customers; identifying in-country value chain integration and creation opportunities; business and financial modelling and route to market strategising.
It is possible to identify, from satellite, the gradient of a river and its flow rate at any individual point, then to make calculations, based on the operating parameters of any pre-selected hydropower kit, about the cost of installation and pay-back periods for hydropower generation at that site. By surveying whole river valleys from satellite, and identifying large numbers of sites suitable for that pre-selected kit, we aim to disrupt the current industry model which results in the bespoke design of one-off run-of-river hydropower installations, and to bring economies of scale, in manufacturing and financing, that have been so successful with other renewable energy technologies, but which have proven so elusive to the hydropower industry. This technology will be useful in the UK and other developed countries, but its real potential for "mushroom-shaped" growth, is in the developing world. As a test-bed of the potential for UK exports across the developing world, this project focuses on Uganda, where the population's access to electricity, especially in remote areas, is less than 10%. Global investment players, both public and private, are very active in driving access to electricity. This is a growth market on a global scale and one which can uniquely be accessed from space.
Rivers offer the promise of great potential for the generation of "green" electricity, but traditional turbine designs are not environmentally acceptable except in a relatively small number of site types - mainly where there already exists a weir or some other water fall. "Pisces Preserver" avoids harming fish while also producing comparatively small amounts of electricity, but in thousands of possible installations. This development could take UK "run-of-river" installations from around 20 to 200 per year.