We recently held the second edition of our Future of Energy Series at Ikigai Westlands. The conversation with industry experts from the Kenya Renewable Energy Associate (KEREA), BasiGo, Bolt Kenya, Uber Kenya, and E-Safiri delved into how Kenya has established itself as an innovation hub for electri Contact online >>
We recently held the second edition of our Future of Energy Series at Ikigai Westlands. The conversation with industry experts from the Kenya Renewable Energy Associate (KEREA), BasiGo, Bolt Kenya, Uber Kenya, and E-Safiri delved into how Kenya has established itself as an innovation hub for electric vehicles.
Shortly after the event, the fuel crisis happened. For weeks, we were subjected to scavenger hunts and long lines at fuelling stations. We couldn''t help but recall the conversation, and how the adoption of electric vehicles (EVs) could and will transform mobility across the city, country, and the continent.
Let''s take you back to the beginning – to the first edition of The Future of Energy Series, where we learned that Kenya is a global leader in the renewable energy industry.
Kenya''s electrification is one of the fastest in the world – from 23% to 80% in just the last 6 years. This has enabled the industry to grow from task lighting solutions to large-scale projects that create economic opportunities – for instance the electrification of the public transport system.
This is a result of the favorable conditions and policies implemented by the Kenyan government. In 2019, the government further incentivized individuals and businesses by reducing the import duty for full EVs. In the next year, 2020, they shared plans to increase the adoption of EVs locally including plans to have electric and hybrid vehicles embedded in the public transit system.
It is generally the consensus that the switch to e-mobility is an opportunity to address multiple shortcomings of the transport industry.
The transition to e-mobility will be good for the environment. For companies such as BasiGo, this was one of their main motivations to encourage the adoption of EVs in the public transport system.
This is a great motivator for many; however, the motivations to adopt electric vehicles are three-fold.
The transition to electric vehicles (EVs) will not only be good for the environment but for livelihoods too!
Carol Ofafa, Founder ofE-Safiri, highlighted that while the environmental aspect is important, the adopters are not driven by sustainability. Not because they don''t want to care, but because they have other pressing matters – money and providing for their families.
It does not have to be one or the other, the adoption of EVs can achieve both. Not only would we be able to empower motorists to make deliberate choices to reduce carbon emissions, but we would also increase earning margins for public service drivers.
The cost of fuel is a big operating expense when it comes to Internal Combustion Engine (ICE) cars. For ride-hailing apps such as Bolt and Uber, 30% of their drivers'' revenue goes to fuel. In the wake of the fuel crisis, to ensure their drivers had take-home earnings, they increased their pricing to account for the rise in fuel prices. This not only affected the driver but also the end-user – their customers.
Andrew Amadi of KEREA mentioned the transition to EVs is a great opportunity to tap into Africa''s greatest resources – the sun and the youth!
To build a sustainable ecosystem and enabling environment to facilitate the increase of cleaner transport solutions, KEREA and the Association of Electric Mobility & Development in Africa (AEMDA) have partnered to launch a platform for jobs in the renewable energy sector named Ya Kazi. Similar to Strathmore Energy and Research Centre (SERC), discussed in the first edition of The Future of Energy Series, the aim is to train and equip stakeholders who will be involved at different points in the industry.
We are looking forward to the third and final edition of The Future of Energy Series which aims to address how innovators are addressing the industry''s shortcomings and building the ecosystem to support Kenya through this transition.
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The commercial partners, Arc Ride Global ltd and Fika Mobility will be responsible for rolling out over 300 electric vehicles (two-wheelers and three-wheelers) and 45 charge stations. Strathmore Energy Research Centre and Imperial College London will be the research partners providing a variety of data points from the electric vehicles to create a master plan for battery swapping stations in Nairobi. The Energy 4 Impact will develop a value proposition for potential business partners while providing administrative support.
The supply of electricity in Kenya
The Director in charge of Transport and e-mobility, Eng. David Mugambi assured the different partners that Kenya Power is ready to support electric mobility in Kenya. The company was well able to supply the electricity required to charge EVs in the country. It was, however, pointed out that it would be important to determine where the load points/areas were planned to enable the company effectively supply electricity as needed. Further, he also stated that Kenya Power is incorporating electric mobility in their energy plan to grow the generation and distribution capacity and together with other partners, deliver reliable and efficient electricity for the sector.
Tariff AllocationStima Boda Co-Founder, Jason Grass, shared his views on tariff allocation during the panel discussion. "We would need to build trust and confidence with the government, customers, and investors by incentivizing these different groups to switch from fossil fuels to electricity through tariff allocation," he said. An investor would need to think of the cost versus benefit of installing a large-scale battery- swapping station in Nairobi while electricity providers would need access to smart meters to ensure that the electricity is for powering e-mobility. The consumer on the other hand needs to trust that electric two, three, and four-wheelers are safe to use and that there are enough charging stations for them to make the switch.
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