Solutions for a clean and reliable energy supply in Sub-Saharan Africa
The IKI-funded project Clean Captive Installations for Industrial Clients in Sub-Sahara Africa is pioneering clean, reliable energy solutions tailored to industrial clients in SSA.
Sub-Saharan Africa’s (SSA) industrial expansion is constrained by power shortages, high energy costs, and inefficient transmission infrastructure. Reliance on diesel-powered generators as backup exacerbates these issues. It drives up electricity costs, and contributes to increasing greenhouse gas emissions, thus exacerbating climate change, intensifying pollution, and creating significant public health risks. The IKI project addresses these challenges.
UNEP with the implementing partner Frankfurt School of Finance & Management collaborates with local experts to provide local market and captive power expertise. The project envisions sustainable development, uninterrupted productivity and energy security by reducing dependency on diesel generator sets and unstable grids through the adoption of clean captive installations.
Six pilot projects
Through six pilot projects in Kenya, Ghana, Nigeria, and South Africa, the project demonstrated the feasibility and scalability of clean captive installations. For example, Kenya's solar-powered cold storage systems enhanced agricultural food security, while Ghana's installations improved rural hospital power supply. Each project was tailored to local energy needs, proving both technical feasibility and economic viability. Collaborating with local stakeholders, the project ensured the specific economic and energy needs of each partner country, fostering stronger regional commitment to renewable energy.
Phase I of the project has made a substantial impact in SSA. By the end of Phase I, the project had successfully mobilized over USD 14.8 million in financing with an additional USD 28 million expected in the next few years, including substantial private sector investment – a clear testament to the economic appeal of renewable energy for industrial clients. Collectively, these projects have reduced CO₂ emissions by 3,497 tones, advancing the project´s commitment to sustainable development goals.
New partnerships and business models
In Ghana, the IKI project supported developer Stella Futura to build a model for carbon monetizing through generation of carbon credits. This led to a partnership between Stella and the Swedish Energy Agency (SEA) advancing mitigation objectives of Article 6 of the Paris Agreement. Tje outreach efforts ensured that this led to a long-term solution.
In Kenya, the Burma market pilot project in Nairobi, implemented by a women-led local developer Tree_Sea.mals (TSM), with a grant from the IKI project, introduced a pay-as-you-go (PAYGO) business model for solar-powered cold storage, designed specifically for the capital’s dynamic meat markets. This model includes three solar-powered cold rooms, collectively supporting up to 156 market meat traders. By transitioning from conventional cold storage methods to a shared, renewable-energy solution, the project is anticipated to lower energy costs by €23,750 annually, reduce emissions by over 77 tons of CO2 equivalent per year and create 36 new jobs. The Kenyan government recognised this project for its community-focused approach and impactful results. It was also recognized at COP28's SDG7 Global South Pavilion, showcasing its role in advancing sustainable energy and empowering communities.
Transforming the energy landscape
The successful best practices and success stories were shared regionally through workshops, publications, and collaborations. Key milestones include the Pretoria Statement, endorsed at the 2023 Regional Workshop, where participants from SSA recognized clean captive installations' potential to resolve energy challenges and foster sustainable industrial growth.
The IKI project transforms the energy landscape for industrial clients in SSA and inspires a shift toward sustainable, resilient, and locally empowered industrial development. By scaling clean energy models, it lays the groundwork for a prosperous, climate-resilient future in Sub-Saharan Africa, proving that sustainable energy is both achievable and essential for industrial and economic growth.
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