Operational Minigrid Profitability in East and West Africa
The nascent minigrid industry in Africa is striving to connect 100m people of the unelectrified 600m Africans. The industry is facing challenges accessing capital, unstructured regulation, limited industry data to guide system sizing and productive load information, and in many cases the inability to leverage procurement advantages and reap the benefits of declining the equipment costs. Powergen having installed 61 minigrids (EPC and self-owned) in multiple African countries since 2016, has a good intuitive understanding and experience of procurement (since annual volumes has grown rapidly and is now over 10M dollars annually), system sizing for profitability (having installed systems as small as 6kW serving 90 customers to over 3mW connecting a small town) and customer data management. As an organization the company has also been working with other partners in the sector to lobby for better regulations in various markets. This presentation will share valuable insights and lessons that can be used by industry players to develop and deploy better, more efficient projects in East and West Africa.
Key Takeaways:
- Explicitly thinking through system sizing philosophy vs. profitability
- Optimal system sizing for project profitability
- Leveraging strategic procurement
- Reporting on procurement and profit
Susan Kabui Mwaniki
Group Finance Planning and Analysis Manager
Powergen Renewable Energy
Susan is a sustainable energy specialist with over five years of experience in financial planning and analysis for minigrid projects, currently working with a start-up, Powergen Renewable Energy. She has managed profitability tracking for development and installation of minigrids in the East and West Africa Regions, with a focus on energy efficient productive use products. She is currently managing the Posho milling and Efficient Clean Cooking program in Tanzania. Susan is a Certified Public Accountant, with a degree in Business Management from Moi University Kenya. Prior to joining Powergen, she worked in the social impact space managing water, hygiene, and sanitation projects.
Group Finance Planning and Analysis Manager
Powergen Renewable Energy
Susan is a sustainable energy specialist with over five years of experience in financial planning and analysis for minigrid projects, currently working with a start-up, Powergen Renewable Energy. She has managed profitability tracking for development and installation of minigrids in the East and West Africa Regions, with a focus on energy efficient productive use products. She is currently managing the Posho milling and Efficient Clean Cooking program in Tanzania. Susan is a Certified Public Accountant, with a degree in Business Management from Moi University Kenya. Prior to joining Powergen, she worked in the social impact space managing water, hygiene, and sanitation projects.