Assessing photovoltaic solar energy financing models and Sustainable energy transition in Ngaciuma-Kinyaritha subcatchment, Kenya
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Date
2013-08-14
Authors
Nkpeebo, Amos
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Abstract
Solar energy is deemed the single energy resource that is continuously decreasing in price
(by 75%), increasing in utility and could effectively contribute to sustainable watershed
management. In Kenya, there is an observed acceptance of Photovoltaic (PV) Solar
Home Systems (SHS) as the best-fit form of energy to meet rural energy demand. This
could potentially displace rural predisposition to woodfuels and paraffin and
cumulatively, reduce environmental vulnerability. Photovoltaic SHS are nonetheless
challenged mainly by the initial capital cost disbursement, globally and in Ngaciuma-
Kinyaritha sub-catchment, Kenya. The focus of this study was to evaluate the economic
and environmental significance of different solar energy financing models. It also aimed
to analyse different scenarios in order to determine the most cost effective, most
sustainable and best-fit financing models that together overcome the capital up-front of
solar energy accessing in Ngaciuma-Kinyaritha sub-catchment. In achieving the stated
objective, the study adopted and adapted interplay of quantitative and qualitative tools of
data collection and methods of data analysis to establish the relationship between energy
use and environmental degradation and the ability of households to transition into solar
energy use. The study made use of empirical survey instruments including: structured
questionnaires (100 cases - using households as a sampling unit), Focused Group
Discussions (in the upper, middle and lower zones of the sub-catchment) and interview
guides for three selected institutions. The analysis of data followed an objective-based
approach in order to emphasize the field observation under each key objective. In
analysing the field data, the study made use of simple analytical tools comprising:
descriptive statistics (frequencies, percentages and means), chi square analysis, cost
benefit analysis, PESTELI analysis, scenario analysis and data triangulation. Using cost
benefit analysis, the study perceived a payback period of 6years for SHS that are 50watts
and a life payback of 8,685Ksh. It also recorded a payback period of 8years for systems
that range between 200wats and 1kilowatts and a life payback of about 100,000Ksh. On
the average, the ability to pay for SHS under the cash sale financing model, third party
credits model and the solar developer model was observed to be 200Ksh. Using scenario
analysis, the study indicates that willingness and ability to pay for multiple utility SHS
under the solar developer model is relatively higher than the cash sale model which is the
observed status quo in the study area. In a PESTELI analysis, the study perceived a
tenable potential in rural energy supply and recommended that an energy user
remodelling should be undertaken by the Kenya’s energy ministry to foster energy
transformation in Ngaciuma-Kinyaritha sub-catchment. It also recommended that the
Ministry of energy (MOE) in collaboration with Global Village Energy Partnership
(GVEP) could pilot alternative capacity building scenarios in rural energy use. Finally it
gives specific strategies which could be used to improve upon sustainable energy use in
Ngaciuma-Kinyaritha Sub-catchment and across the developing world.
Description
TJ 810 .N54