Shapi Shacinda and Duncan Miriri, Reuters 11 Sep 09;
JOHANNESBURG/KERUGOYA, Kenya (Reuters) - Mini hydro plants could be the answer to a lack of power in rural Africa, especially as larger power projects are put on hold due to limited cash and abundant red tape, industry officials say.
Analysts say the continent could generate as much as 330,000 megawatts (MW) from its hydro reserves, yet only some 7 percent of that potential has been exploited so far.
But rather than trying to build big dams such as the Grand Inga dam in the Democratic Republic of Congo, which comes with political risk and an $80 billion price tag, communities and investors are looking into developing smaller plants.
"It's a very effective way of providing electricity. The lifespan of a mini hydro scheme could be 20 years or more," said Steven Hunt, an energy consultant based in London. Hunt said most projects in Africa would be 10 kilowatts to 10 MW.
So far only one in four Africans is linked to the grid, but power needs on the continent are estimated to triple by 2035.
Small hydro plants, involving small dams, pumps or water mills, can light villages with minimal environmental impact.
A 7 MW plant in the South African town of Bethlehem is expected to supply power to 15 percent of the roughly 70,000 people, at a total cost of 100 million rand ($13.24 million).
Mini plants satisfy people's basic needs, like the 0.75 kilowatt turbine in Kenya's Kerugoya village which gives access to power without forcing people to walk miles to the next town.
"Now people can walk from their homes to this site and access the Internet, print and charge their mobile phones," said James Kinyua, the head of the project.
The part self-help, part donor-funded project is one of many initiatives across Africa to bring electricity to people not yet covered by national grids.
Zimbabwe is estimated to be able to generate up to 85 MW from small hydro on free-flowing rivers and irrigation dams to supply electricity to farmers whose production could help fight food shortages in the country.
"Power is essential for development. The minute power becomes available, it enables a number of activities," said Felix Kiptum, a U.N. renewable energy consultant.
African governments say the extension of electricity lines to more people is a priority. Kenya is in the process of adding 200,000 new electricity consumers every year until 2012.
While South Africa plans to electrify the country by 2012, Rwanda has said it requires $200 million by the same year to add 220,000 new customers to the national grid.
Rwanda, which relies on diesel, high fuel oils (HFO) generators and imports to complement the 43 MW generated from hydro-electric power, has identified 333 potential hydro sites.
A mix of infrastructure bonds, mobilization of donor funds and even the small community's initiative like the one in Kerugoya are all fair game to increase electrification.
Civic group Practical Action is building 15 mini hydro plants in Zimbabwe, Malawi and Mozambique to light homes, schools and clinics and to irrigate fields.
Kenya, the world's largest exporter of black tea, also plans to build 10 mini hydro plants supplying a total of 23 MW to irrigate tea plantations.
Mini hydro projects will also help retain professionals such as teachers and health workers in rural areas.
"People will not be running away to go to the urban areas ... (power) is the thing they desire everyday," Kinyua said.
(Additional reporting by Chris Mfula in Lusaka, Helen Nyambura-Mwaura in Nairobi, Eddie Bugingo in Kigali and MacDonald Dzirutwe in Harare; Editing by Agnieszka Flak)
FACTBOX: Energy projects in east Africa
Reuters 11 Sep 09;
(Reuters) - Mini hydro plants are seen as part of the answer to ease power shortages in Africa, especially as larger projects are put on hold due to a lack of cash and abundant red tape, industry officials say.
Below are other energy projects in east Africa.
KENYA
* Kenya plans to spend $8 billion on 2,000 MW by 2013 -- 500 MW geothermal, 600 MW of clean coal, 800 MW from wind turbines, 30-50 MW generated as a bi-product of sugar manufacture and 30 MW hydroelectricity. Some other confirmed energy projects are:
* Kenya's Lake Turkana Wind Power plans to produce 300 MW of electricity by 2012.
* Kenya has invited construction tenders for a 428-km (266-mile) power line and four substations.
* Kenya Electricity Generating Company (KenGen) plans a fuel-powered plant for 120 MW by 2010.
* It also plans a $700 million coal-fired plant for 300 MW with a joint venture partner holding 60 percent.
* Aggreko to produce 140 MW of emergency thermal power for KenGen
* Independent producer Tsavo Power to add 50 MW by end of 2010 at a total cost of 50 million euro.
* Athi River Mining to construct a 29 MW coal-fired plant for $50 million by December 2011.
* China's Sinohydro is building a $65 million 21 MW hydropower plant in Sondu Miriu for KenGen.
* Kenya plans to double the capacity of its Mombasa-Eldoret oil pipeline to 880,000 liters per hour and to extend the pipeline past Eldoret to Uganda by end 2010.
* Kenya Power & Lighting Company is looking to install three 80 MW oil-fired power stations.
* Mumias Sugar has a majority stake in a $370 million project to produce 23 million liters of ethanol. Environmentalists and herders oppose the plan.
* India's Essar Group will upgrade the Mombasa refinery with $350-$400 million.
* Kenya's biggest tea producer, KTDA, plans some 23 MW of mini-hydro plants to power its rural factories.
ETHIOPIA
* China's Sinohydro and the Ethiopian Electric Power Authority have a 1.9 billion euro ($2.70 billion) deal for two hydroelectric dams for 2,000 MW. The deal brings the number of dams under construction in Ethiopia to seven with an aggregate total capacity of more than 5,000 MW.
TANZANIA
* Tanzania needs to invest $8 billion to boost generation and transmission by 2031 to meet rising demand, expected to jump by 471 percent to 4,500 megawatts (MW).
* Canada's Artumas Group plans a 300 MW natural gas-powered project in southern Tanzania for $700 million. The government wants to build over 500 km of high-voltage lines to link the plant to the national grid.
* Tanzania intends to construct a 400 MW coal plant by 2012 for $1.2 billion.
* The state-run utility means to spend $33 million on a 134 km high voltage line.
UGANDA
* British explorer Heritage Oil expects oil production to start in 2010.
* Kampala is mulling over whether to build a large refinery for its nascent oil industry -- already estimated at reserves of two billion barrels -- or to construct a smaller one.
* Uganda expects two hydropower plants -- Bujagali with a capacity of 250 MW and Karuma Falls with 700 MW -- to begin production of electricity by the end of 2010.
RWANDA
* Rwanda and the Democratic Republic of Congo have a joint gas project for 200 MW in Lake Kivu. Total reserves estimates are at 55 billion cubic meters of gas, which has the potential to produce around 700 MW over at least 50 years.
* Rwanda has signed a $325 million investment deal with ContourGlobal for a 100 MW natural gas extraction and electricity generation facility.
* Rwanda plans a further 100 MW project by a consortium led by Kenya's Industrial Promotion Services, the International Finance Corporation and the African Development Bank.
* The World Bank intends to loan Rwanda $70 million to expand its national electricity grid.
* Rwanda plans a micro-hydro generation scheme ranging from 5 KW to 3 MW projects at more than 300 potential sites.
BURUNDI
* Burundi plans two hydropower dams on its border with Rwanda and the Democratic Republic of Congo for a total 410 MW by 2018 and another 60 MW project on its border with Tanzania due to start by 2016.
* It is also working on two hydro projects, due to be completed in early 2010, to add 15.85 MW to its national grid, which will be lengthened to 5,000 km by 2012 from 3,300 km. (Reporting by Helen Nyambura-Mwaura)
