Transcript Kes energy services company

Presented by Mkhuseli Faku
Director - KES Energy Services Company
KES SHAREHOLDING
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KES in South Africa
KES - KZN
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Company began operations in 2001 following tender in
1998.
The project in KZN is funded by the DOE.
Development of project was intermittent due to
contractual issues. Areas of installation were Msinga,
Maphumulo and Ndwedwe.
In Nov 2009, KES was awarded a new tender for 10000
SHS installations in Southern KZN. Installations should be
completed within the next few months. Installation areas
include the existing areas and also Nquthu and Umvoti.
At the end of this project there still remains many nonelectrified households in our concession areas.
KES – Eastern Cape
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KES was awarded a tender in 2007.
This project is funded by KfW (German development
agency) for a total of +/- 30000 households. Concession
area is in Eastern Cape specifically DC 13 and DC14.
 Total of 7300 customers installed in Eastern Cape to date
in the areas of Tsomo and Mount Fletcher
 Currently we need to identify new areas as soon as
possible. KES needs clarification from the role players for
the grid roll-out and subsequently the identification of
non-grid areas.
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Fee for service model
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Capital investment – 80% subsidy 20% KES investment
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Customer “rents” system for a monthly fee 79 rands per
month – 365 days pa
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Depending on area monthly tarrif is subsidised by Free Basic
Electricity from Local Municipality ( from zero up to 50%).
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KES has full operational/maintenance contract for systems
for 20 yr period
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A prepayment meter system is used
2009 Energy Forum Breakfast
2009 Energy Forum Breakfast
Solar Home System
55 /65 wp solar panel
3 CFL lights, 1 LED
Meter and
battery
enclosure
Challenges
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Institutional delays pose problems to sustainability
of project
 Financial costs of delay – fixed costs and commitments to SMMEs –
increases overall operators investment.
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Sustainability
 Current model implies customer tariff should cover payback of
investment, life-time replacement costs (batteries), maintenance
costs – all which are bourne by the operators. In reality, it does
not.
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Payment issues
 All operators experience low and continued decreasing collection
rate which impacts upon the sustainability of the model.
 Affordability of the monthly fee is a large contributor to non payment.
FBE (free basic electricity) is not applied uniformly and might not be
sufficient for the poorest of the poor.
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Operational Challenges
 Difficult Terrain, theft of systems and tampering all increase costs.
There is a need for the system to evolve to balance demand and
supply issues whilst always considering affordability.
Benefits to the community
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The inclusion of off-grid electrification programs is essential
to achieve the stated objective of 92% access to electricity
by 2015.
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KES is a services company - Msinga households already
have 10yrs of service
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The SHS replaces more expensive and hazordous energy
sources.
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Exterior lights increase security.
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Access to media and education – radio and tv.
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JOB Creation – directly 87 permanent jobs created by
KES and 6 BEE SMME Subcontractors appointed employing
100 people. This excludes all indirect jobs.
Energy stores used to introduce other modern, safe forms
of energy for thermal needs such as LPG, efficient wood
burning stoves
98 MWh per month of green energy
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Conclusion
KES can offer the most relevant identified solution for a
specific area this could imply different technological
solutions (i.e mini-grid) or levels of service.
However, there are challenges to the sustainability of the
project that need to be addressed. We thank DOE for
this platform and would encourage prompt dialogue
between all stakeholders to improve sustainability of
rural electrification.
KES is a public private partnership, and looks forward to
continuing its role of bringing energy to the rural
communities.
Thank you for your attention