Re-envision electrification for socioeconomic growth

There is broad consensus that electrification is the most viable way to decarbonise systems and processes powered by fossil fuels. It is estimated that the share of electricity in the global energy mix will grow from six per cent today to 40 per cent by 2040. But here’s the catch: even as regional economies ramp up electrification, we run the risk of detrimental impact on the planet – unless we re-envision it within the sustainability and climate actions framework. 

In 2019, East Africa had an electrification level of 36 per cent, with over 140 million people lacking access. To put this into perspective, the global electrification level in 1999 was 74.7 per cent. When we talk about the lack of access to electricity, we aren’t talking about just darkness after sundown. We are talking about the impact on education, healthcare, food systems, employment, and, broadly, socioeconomic development. Kenya achieved an electrification rate of 75 per cent in 2021, up from 53 per cent in 2016. This was significant progress because of its implications for the lives and livelihoods of millions.

In 2019, hydropower accounted for 54 per cent of the electricity produced in East Africa, followed by natural gas, oil and coal. While not the mainstay of electricity production, fossil-fuel-based thermal power plants — which are energy and carbon-intensive — must be scaled down as they are antithetical to the core objective of reducing greenhouse gas emissions.

 Additionally, owing to the growing population and a consequent increase in energy demands, electrification efforts must emphasise reliability and efficiency.

If electricity is one of the most viable means to address climate change, it is only right that it is sustainable, ethically produced and equitably distributed. This shift is paramount we even coined a name for it; Electricity 4.0. Just like Industry 4.0 — the evolutionary phase that marked greater integration between the physical and digital worlds — Electricity 4.0 posits a more-electric, more-digital world. It requires stakeholders to view the world through the lens of electrification and digitalisation. From renewables-led production to digitalised grids, electricity must be re-envisioned. The “zero” in Electricity 4.0 also symbolises zero-waste, zero-emissions and zero-carbon future.

Policymakers are provisioning to increase the share of renewables in electricity production. So, we expect the contribution of renewables to electricity production to increase six folds by 2040. East Africa experiences high levels of solar, which can be harnessed for electricity production, especially considering the costs of solar cells and panels have been reduced significantly.

Kenya has set good precedents in harnessing renewables, particularly geothermal energy, to tap into Electricity 4.0. The country is a clear leader in renewable energy, thanks to frameworks such as the Rural Electrification and Renewable Energy Corporation. This synthesis of rural focus, electrification objective and the renewables shift epitomises Electricity 4.0. The only remaining prerequisite is digitalisation. 

USAid, in 2019, said that the lack of financing and opaque production processes are the bottlenecks hindering growth in Kenya’s power sector. In this scenario, the first order of business is to attain more visibility into how energy is being utilised in existing systems. The Internet of Things (IoT) and analytics platforms find an application in this context. They do not merely provide insights pertaining to inefficient processes and energy consumption, but also create opportunities to add renewables to the mix. Existing grids in East Africa, particularly Kenya, are ripe for such solutions.

Higher adoption of IoT-led solutions in initiatives such as the Eastern Africa Power Pool — a collaborative effort by 11 regional countries to interconnect their electricity grids and take advantage of excess capacity — could work wonders for the region. The resulting digital grids will be more attuned to decarbonisation measures. Additionally, they allow cloud connectivity, centralised monitoring, remote operations and proactive troubleshooting — all leading to higher efficiencies, lower wastage and resilience.

On the economic front, IoT-led solutions can play a vital role in enhancing efficiencies in critical sectors such as agriculture — a primary GDP driver in Kenya. IoT platforms’ ability to drive precision farming and smart irrigation have big implications for regional socioeconomic growth.

— The writer is country president, East Africa, Schneider Electric