InfraCo Africa and Rural Village Energy Solutions (RVE.SOL) signed a joint shareholders agreement to invest $8 million for assisting the expansion of RVE.SOL’s multi-sector KUDURA Power East Africa (KPEA) business in Kenya. The company intends to build 22 mini-grids using solar PV in Kenya’s Busia County. Each mini-grid will have a storage mechanism to ensure that people may continue to use energy after dark or during inclement weather.
InfraCo Africa will also own 40 per cent of the company that finances, constructs, and operates off-grid clean energy projects under the agreement. The funds invested by the investment firm will be utilised to facilitate KPEA’s expansion.
RVE.SOL has constructed 20 functioning mini-grids throughout the country as of yet. The mini-grids, which will include battery backup, will range in size from 10 to 60kWp, totaling 512kWp. The company’s modular architecture allows it to react to changing power demand over time. Through a combination of densification of existing sites and the installation of new mini-grids, the project will enable approximately 7,000 new rural energy connections.
The project is backed by Kenya’s Green Mini Grid facility and funded by UKAid and the EU Africa Infrastructure Trust Fund. GMG Kenya has also previously supported KUDURA with funding during its early years, resulting in 11 electrified communities. PIDG Technical Assistance has also granted the project $235,000 in grant funding to undertake a variety of capacity building efforts and technical research.
The mini-grids are projected to be installed by the first quarter of 2022, with complete commissioning by the third quarter. KUDURA mini-grid hopes to attract more private sector investment by scaling KPEA’s innovative multi-sector approach to off-grid power.