Access to electricity can have a significant and positive impact on education, health, and productivity. The Government of Kenya is working to have electricity reach all citizens, including the poorest and most remote, by 2020. Carbon finance from Ci-Dev will help to overcome key barriers to the adoption of solar products in rural Kenya.
Kenya’s Rural Electrification and Renewable Energy Corporation (REREC) (formerly known as the Rural Electrification Authority), with support from the World Bank, is providing solar energy access to households, public institutions, and community facilities. The Kenya Off-Grid Access Project for Underserved Counties (KOSAP) is expected to install 120 solar mini-grids, 250,000 solar home systems, more than 1,000 community solar systems, and 380 community solar water pumps, providing much needed access to 14 under-served counties throughout the country.
The carbon revenues earned from the installation of these solar products will be used to support a household connection subsidy for the installed solar mini-grids, making access more affordable for the poorest Kenyans. The funds will also support after-sale maintenance services for solar home systems, solar water pumps, and community solar systems. This unique “pay-as-you-go” model incentivizes private off-grid solar companies to maintain long-term relationships with customers.
Through collaboration with the private sector and support for community solar solutions, the project offers a unique example for how carbon finance can help promote energy access in the most remote and rural parts of Kenya.