This document discusses renewable energy solutions for East Africa, specifically Kenya. It finds that renewable energy is more economical than conventional power for small-scale off-grid generation. Kenya currently relies heavily on hydro power but production is inconsistent. Distribution of power is also limited, with only 0.5-5% of rural areas having access. The document evaluates solar and wind power options and finds integrated wind/solar systems could provide an ideal solution. However, several gaps currently limit renewable energy adoption, including affordability, expertise, access to credit, and logistical challenges. The document proposes that WindGen could help solve these challenges through domestic manufacturing of small wind turbines and providing a one-stop-shop for integrated renewable energy systems, components

1. Renewable Energy Solutions for East Africa

2. A recent study concluded that renewable energy is more economical than conventional power for off-grid generation of less than 5 kilowatts – exactly the sort of power needed by the majority of African users.African Competitiveness Report 2009

3. The ContextEast Africa’s Energy Situation

4. Power Landscape in KenyaProductionMostly hydro – has been a problem in recent drought yearsGeothermal, Wind, Thermal (Gas Turbines)Centralized production not expected to keep up with increasing demand – production shortfalls are commonDistributionRural power access: 0.5% – 5% Reliability issues: over 7 outages/month where there is powerDespite efforts of the Rural Electrification Authority, distribution network is expanding at a snail’s paceThere is a large and increasing demand for off-grid, renewable energy systems that can provide reliable power.

5. Renewable OptionsSolarWindProsEasy to ship

6. Relatively inexpensive to import from China

7. Can produce power day and night

8. Can be manufactured with mostly local materials

9. Economically attractiveConsCapital and technically intensive to manufacture

10. Must be imported

11. Only generates power during daylight hours

12. Reduced productivity in rainy seasons

13. Difficult to import due to bulk

14. Slightly more complex installation process (mounted on mast/tower)Regional Wind Potential

15. Regional Solar Potential

16. Ideal Solution?Integrated renewable energy systems:SolarWind+

17. The ProblemWhy Don’t More Kenyans Have Access to Renewable Power?

18. What’s Holding Back Solar?Consumer education – people do not understand renewable energy systems well enough to make an informed decision about investing in one

19. Access to credit – many off-grid consumers need financing to afford 10-20 years of power in one up-front payment

20. Logistical support and rural access – coordinating suppliers, installers, and transporters to install systems in rural areas can be difficult for the consumerWhat’s Holding Back Wind?Expensive to import due to bulk

21. Those that are imported tend to be low quality

22. Slightly more difficult to install than solar panels

23. Consumer education – people do not consider the wind option because of the lack of marketingof wind power products

24. All of the problems that hinder propagation of solar systems (consumer education, lack of credit, and logistical challenges)The Essential ProblemsThe Four “Gaps”Affordability Gap – consumers need a more affordable renewable energy option (wind).Expertise Gap - consumers need to better understand renewable energy systems and their benefits and limitations.Credit Gap – consumers need access to financing to afford the front-loaded cost of renewable energy.Logistics Gap – coordinating multiple suppliers, transporters, and installers is daunting. Consumers need a one-stop-shop solution.

25. The SolutionWindGen Solves the Challenges that Limit Both Solar and Wind Systems

26. The WindGen SolutionThe Four “Gaps” - ResolvedAffordability GapWindGen manufactures a more affordable, locally produced source of renewable energy in our wind turbinesExpertise GapWindGen provides enhanced marketing, consulting, and energy auditing services Credit GapWindGen partners with local credit providers who provide financing for renewable energy consumersLogistics GapWindGen provides consulting, delivery, installation, and equipment procurement – everything our clients need in one place

27. Two Concurrent Approaches1Domestic Manufacturing of Small Wind Turbines2Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems