A community model for rural connectivity, Green Energy access and Small scale industrialization.

-

 To deliver socio economic transformation of population in rural areas requires two key enablers - Broadband access and electricity. Broadband technologies deliver internet access to unlock access to services while electricity delivers lighting and powers multi-sectoral industrialization.

Telco and Infrastructure companies in many African countries, and with patient capital from development partners are trying to bridge the unconnected, unserved and underserved Gap in rural areas with lowcost, smart, site infrastructure solutions paving the way for a digital transformation journey for these areas.

There is still some way to go, because based on the GSMA State of mobile Internet Connectivity Report 2021, Broadband penetration in Subsaharan Africa stands at 28%, with 210m people still unconnected.

This is compounded by the fact that the cost of extending Hydro electricity is still very high, estimated in the range of USD20,000-30,000 per Kilometre. According to an IEA World Energy Outlook Report 2020, 578m people in subsaharan Africa are not connected to the grid, with the electrification rate still at 29%.

In subsaharan Africa, a big percentage live in rural areas, with a low Purchasing power, and predominantly subsistence agriculture as the main economic activity.

However, as the adage goes, that for every problem or challenge, there is a solution, we can unlock the potential of rural areas through Solar / Green electrification of a multitude of communities by using the basic design principle of a telecom site - the cell radius principle. 

Cell radius is the coverage area in which the population lives. This is the same population that requires electricity for lighting houses, a rural network economy of markets, kiosks, Rolex stalls(specific to Uganda), schools, small machines for agricultural product value addition etc. 

The Cell radius or coverage area is arrived at following prior Geomarketing  and other feasibility studies by Telco/InfraCos to arrive at a specific site location that serves many users/subscribers in all coverage directions - and is forecast to generate enough revenue in the medium term.

Africa is also blessed with abundant sunshine, so the potential for Solar PV systems is massive.. In subsaharan Africa a 1KWp Solar system will generate anywhere between 125-166KWh per month. Some studies by IRENA suggest that the theoretical generation potential is upwards of 660000TWh per annum. 

Based on the two above realities, its therefore feasible to roll-out decentralized Solar mini grid systems, away from the central grid, by using the Telco site infrastructure as a Green power station to electrify many rural communities.

So, what defines a rural site?

We can define a rural site as one within a cell radius of 1-15KM, with a population density of anywhere between 1-10,000subscribers, and 50-100KM from an urban center or a hydro electricity substation.  It would therefore make sense to use the rural site infrastructure as a Solar green source, especially since the cost of electricity transmission, to cover this distance to a community of say 100-3000people would be high ( $1-3m). When you add up lost revenue from transmission losses(average of 20%+), due to age of the grid and other operational gaps, a sound business case for Natural/Green Sources of power becomes possible.

Green Model for Rural Electrification & Broadband Access

We can therefore instead invest the capex into upgrading the existing rural site infrastructure from say a 10KW system(ideally a multi-tenant site) to 0.5-1MWp Solar Mini grid systems, implement tiered community electrification and broadband access models that deliver an accelerated rural transformation agenda. The cost of say a 1MWp solar grid system today, complete with storage is between $1.8-2m which is manageable. 

The source and structure of the financing for this venture may be varied, from Grants to public private partnership models with development partners and Telco/Infrastructure companies, supported by an enabling country regulatory framework. 


Comments

Post a Comment

Popular posts from this blog

Here is why Africa must play in the Technology Revolution

-
Image
The continent of Africa has an infrastructure gap, as estimated by the African Development bank , in finance terms to be in the tune of $100bn a year. With a Low tax base, in most cases unable to support each Country's annual budgets, it therefore means Africa must rely on development partners to fill this Financing Gap every year as a short to mid term Solution. To increase the tax base, Africa must strive to have a fully digital society in all spheres of life. However, this is where i pose a Question... Is Africa thinking strategically to address this challenge? There may be many answers, but with the African Continental Free Trade Area(AfCFTA) Initiative , Africa has one avenue to address this challenge. Another is by fully embracing next Generation technology, leveraging its Geographical location, a young and growing tech savvy population to deliver social economic transformation for its people.  It is estimated that Africa will have a market size of about 2.5Billion people by
Read more

Technology Disruption and the evolving XaaS business models, which are the next frontiers?

-
Technology has grown in leaps and bounds over the past 20-30 years, with a 360 degree shift from analog telephony and other traditional dial up services to a convergence of voice, video, data & internet services. This phenomenon is facilitated by the parallel growth trajectory of networks, starting from 2G towards 3G/4G/5G broadband networks, the increasing fiber footprint (Terrestrial, aerial and submarine) and the emergence of Data Center & cloud infrastructure. These network enhancements have enabled increased data speeds and improved subscriber experience. Obviously this network build comes with a massive CAPEX outlay and networks therefore end up adopting Vendor-lock-in and other preferential business models to recoup their investment. Meanwhile, with increasing network coverage footprint has been growth in mobile broadband internet subscriptions, and a surge in the adoption and use of the smartphone, which is now becoming a necessity in all ways of life. According to GSMA
Read more

Technology & Big Data in Infrastructure Investment Planning

-
Image
Infrastructure plays a critical role in driving several sectors of the economy. Social infrastructure like schools helps educate the next generation while Hospitals keep us healthy. Economic infrastructure like roads, power lines, railways, telecommunications drive the economic transformation of society. However, in Africa we have an infrastructure-financing deficit, to the tune of $100bn annually as per the African Development Bank ( AFDB ) projections.   Countries in Africa are not able to absorb this funding gap due to fiscal/budgetary limitations, lack of local financing, an inadequate or an undeveloped stock market et al. In the face of these realities, governments have to work with development partners and international private investment vehicles to attract the finance necessary to deliver the above infrastructure to society in a cost-efficient manner.   Country Demographics and Infrastructure planning A meticulous planning approach for social and economic infrastructure can
Read more