BEYOND THE GRID: BEYOND THE NUMBERS - THE IMPACT OF BGFZ
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BEYOND THE GRID: BEYOND THE NUMBERS – THE IMPACT OF BGFZ
BEYOND THE GRID: BEYOND THE NUMBERS – THE IMPACT OF BGFZ 3
Introduction Beyond the grid: beyond the numbers
Zambia is home to a highly dispersed
population, with more than 60% of
capacity and investment, including
into the range of new technologies
sector-led energy service provision and
stimulate the local energy market, with
– the impact of BGFZ
people living under the poverty line, and solutions around distributed, the ultimate aim of connecting one
and some 70% of whom have no off-grid energy services powered by million Zambians to modern energy
access to modern energy. Neither renewable energy. services. Today the Swedish-funded BGFZ has resulted in profound changes in the lives of
the national utility nor energy service
In 2016, the Power Africa: Beyond
programme is on track to connect many Zambians in off-grid rural and peri-urban areas.
providers had been able to effectively 1.6 million people – or 13% of the
deliver energy to rural and peri-urban the Grid Fund for Zambia (BGFZ) population – by 2021.
The availability of affordable and clean solutions has
areas, hindered largely by a lack of was launched to help support private had impacts well beyond keeping the lights on.
The following report contains highlights After acquiring money saved being spent to improve other
from a study conducted in December 2018 the energy service, areas of life. Improved lighting has also
to determine the socioeconomic impacts the proportion resulted in increased business hours, is
of the BGFZ programme. of households using easier on the eyes, and provides enhanced
candles dropped by safety and security for households and
The Centre for Energy, Environment and communities at large.
Engineering Zambia (CEEEZ) conducted
95%
the study through a series of interviews Communication
with 164 energy customers benefitting Energy services make it easier to charge
from BGFZ. The study aimed to cell phones, which in turn allows people
understand the relationship of customers to keep in touch with friends and family.
with the services and service providers. The charging facilities also mean more
households are able to power radios
Off-grid energy solutions are a technically
and televisions, improving household
96%
viable, affordable, quickly deployed and
access to information, current affairs
reliable option for Zambians wanting
and entertainment.
modern energy services. But the impacts
of using renewable energy over traditional
methods have been far-reaching, impacting
daily life in some communities. of households said the
lighting helped their
Lighting children study better
Reliable and renewable lighting solutions than before
have resulted in more night-time activities,
including the opportunity for children
to study after sunset for longer than
traditional lighting would allow. Candles
are considered expensive, temporary,
“Customers dramatically altered behaviour in
and hazardous, while solar lighting is clean, several ways after purchasing an energy service.”
safe and has a far greater lifespan at vastly
98%
reduced (comparative) costs, with the CEEEZ, 2019
of interviewees rated
their energy services
as “very good”
>152,000* >790,000* >1,600* >2,000* >375,000 kg C02*
Joyex Zulu, a shop owner in Shikoswe
Compound, Kafue, holding her new Connections Beneficiaries Jobs created Businesses connected Mitigated annually
ReadyPay solar home system from
Fenix Intl.
*As of January 2020. Please find more information at www.edison.bgfz.org
BEYOND THE GRID: BEYOND THE NUMBERS – THE IMPACT OF BGFZ 5
Transformational impact
Cell phones have great importance in rural Zambia. Apart from
tools for communication, cell phones can be used for identification,
to send and receive money, and reduce reliance on banks.
The ability to charge a cell phone is therefore a high priority.
25%
of customers used their
energy service to increase
their income from
offering phone charging
and mobile money
Ester Tembo lives in a rural
services to lighting small
village an hour outside of businesses and other
Lusaka. She often cooks for
up to 25 people – a job made
income-generating
far easier by her SupaMoto infrastructure.
clean energy stove.
“The households are charging their cell phones in their
homes and making savings by not paying elsewhere for the
service while also cutting off expenditures on transport.” 48%
of respondents said their
Schoolgirl Naomi Musoli
energy service enabled makes a call from her farm on
them to do things they her family’s mobile – charged
could not do before by their solar home system.
87.6%
Cooking
Traditional cooking methods that involve
79%
the burning of wood or charcoal expose
households to poor air quality and increase of households previously charged their
the risk of respiratory illnesses. Clean saved money by using BENEFITS OF USING phones at nearby shops,
cooking solutions do not negatively impact the energy service ENERGY SERVICES friends or marketplaces
air quality and do not present the same and were able to use
hazards that traditional methods do. – Saving money on energy-related
the money to improve expenditures, particularly on lighting
100%
There is initial evidence that improved other areas of life like
nutrition and housing – Generating new opportunities to of interviewed
cookstoves (ICS) provide significant supplement and/or increase income
benefits in particular to women, who are households have a cell phone
from small businesses
largely responsible for firewood collection
and meal preparation. A wood pellet – Improved security and safety due to
20km
burning improved cookstove has been reliable lighting
included in around 500 of the energy the farthest distance to
service packages to date*. – Increased time available for reading or
studying during night time hours travel to charge a cell phone
One third of interviewed households with – Cleaner air indoors due to improved
an improved cookstove reported spending lighting and cooking
less time (only 2-15 minutes) on collecting
fuel – a task that could previously take – Improved access to communication
To get a loan, you must have a cell phone, ZMW6-15 previous cost per week
4 hours.
– Greater access to current affairs but do not need a bank account or collateral (USD 0.40-1.00) to charge a cell phone
* As of January 2020
BEYOND THE GRID: BEYOND THE NUMBERS – THE IMPACT OF BGFZ 7
How much has been saved? The four companies of BGFZ:
Standard Microgrid provides reliable
Households previously spent The highest amount saved indicated 87% of households saved electricity to communities through an
ZMW 60-180 (USD 4 -12) on by respondents was ZMW 3270 money after acquiring the innovative financing mechanism. The
candles per month (USD 225), the average amount was energy service company’s distributed renewable energy
ZMW 60-300 (USD 4-20) services are customisable and affordable,
allowing communities to stay in control of
their energy usage and expenditure.
Emerging Cooking Solutions combines
Additional bio-energy and solar in their SupaMoto
Energy products for cleaner and more
quality benefits efficient cooking. SupaMoto stoves run
on pellets, and will soon be made available
In addition to the improved lighting, on a pay-as-you-go system, making the
easier access to phone charging, and the products accessible to more people.
range of available electrically-powered
appliances, customers also benefit
from an enhanced level of service
quality in the system itself. Aside from Standard Microgrid
the mandatory minimum three-year
warrantee on core hardware, customers Fenix International Zambia provides solar
have access to access free customer home systems through an innovative finance
service hotlines, technicians and service structure. The product, known locally as
centres closer to their homes, a range Fenix Power, is a lease-to-own solar home
of auxiliary products and services and system providing lighting, phone charging,
opportunities to earn through referrals. TV and radio for off-grid households,
Their benefits: financed through affordable instalments over
mobile money.
– Customer service
Agents for Fenix Intl. explain their
– Agents / points of contact ReadyPay Home Starter solar kit
to Joyex Zulu in her home.
– Upgrading / downgrading
– More products available
– Job opportunities / referrals “More than 98% of respondents
– Education are satisfied with the products and services.”
Fenix International Zambia
Recommendations
Although satisfaction Most of these centred around finding There is potential for improvement VITALITE Zambia offers solar home
better payment modalities for those such as (1) prioritizing consumer systems through an innovative and
among respondents was without access to (or interest in) awareness and sensitization affordable pay-as-you-go system. The
overall extremely high, many mobile money. programmes, so that consumers company has also focused on improving
still pointed out areas of Some customers also wished
are able to make informed decisions smallholder farming practices by making
about products and services, (2) affordable quality products ranging from
improvement. for more local technicians and inclusion of improved cookstoves, solar powered water pumps to high-quality
encouraged energy service companies and (3) expanding networks of certified farming inputs. The company’s
to further improve product capacity product technicians to reduce repair agricultural information platform and
and durability. and replacement times for customers customised training videos spread climate
living in remote areas. smart agriculture practices. VITALITE Zambia
E: communications@reeep.org W: beyondthegrid.africa
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