Kenya-based business SteamaCo is harnessing the power of mobile to bring affordable electricity access to rural, off-grid communities. SteamaCo’s smart technology allows solar micro-grid owners to monitor their performance remotely and capture consumer payments via mobile money platforms, thereby overcoming the traditional challenges of keeping grids working reliably and profitably.

This simple but fundamental transition stands to make investment in solar micro-grids a truly compelling prospect, bringing electricity to millions and giving local entrepreneurs the tools to thrive.

SteamaCo’s transformative approach has been recognised at a global level by clean energy charity Ashden – the company has just won both the Ashden International Gold Award and Business Innovation Award.

Tapping into the mobile revolution

Speaking at this month’s Business of Energy event in London, SteamaCo co-founder Sam Duby said the company was “standing on the shoulders of giants” by harnessing the explosive popularity of mobile money platforms in Kenya. Some 25% of Kenya’s GDP now flows through M-Pesa, the country’s flagship and ubiquitous mobile money platform. Meanwhile, mobile internet use in Africa is predicted to grow at double the rate of the rest of the world over the next five years.

“The world is getting smarter and we’re just one of a number of companies tapping into this growing ‘internetisation’ to bring change to people’s lives,” enthused Duby. “Developing communities have traditionally been viewed as too poor to use sophisticated energy services, but we aim to show that is simply not the case.”

Referring to smart thermostat startup Nest, now owned by Google, he said: “We call ourselves ‘Nest for the rest’. We’re using the same type of technology and the same intelligent processes to catalyse major social and environmental benefits.”

Having experienced the challenges of running micro-grids – small-scale power grids operating independently or in conjunction with a central grid – Duby and co-founder Harrison Leaf now focus entirely on developing smart tools for grid owners to operate successfully. And the time is right for remote electricity monitoring technology, Duby believes, as solar energy becomes more affordable and a rapidly industrialising continent seeks more power, against a backdrop of insufficient energy infrastructure.

So how does it work?

Grid owners and operators install SteamaCo’s hardware at their power stations and monitor the technical and financial performance of grids remotely – and in real time – via cloud-based software. They can troubleshoot and address problems, such as dips in battery voltage, before they become serious, as well as identify spare capacity that could be directed to other uses, like water-pumping, and check customers’ power usage against their remaining balance.

Meanwhile, customers get flexible access to electricity. They top up their credit and check their balance as they would a pay-as-you-go phone. Importantly, all data, including notifications to top up, is sent via SMS messages, making it possible to operate in some of the most remote, rural regions.

Having won its first customer in 2013, SteamaCo is now supporting 30 grids (26 in Kenya and four in Tanzania, Benin and Nepal) that provide a total of 120kW of power to 1,000 homes and small businesses. Among the owners of the first grids are energy heavyweights E.ON and PowerGen. SteamaCo plans to expand further in Kenya and beyond.

“SteamaCo’s technology stands to tip the balance in expanding access to electricity by making micro-grids an investable proposition,” explains Dr Anne Wheldon, renewable energy expert and Ashden judge. “Investors can see there’s a clear mechanism in place to manage grid maintenance and capture payments transparently.”

Additionally, the flexibility of the SteamaCo platform means it could even be used to connect people to the mains grid. Should electricity regulators approve the idea, a micro-grid using SteamaCo technology could buy a connection from the mains grid, and share the cost with its users. With the cost of a single grid connection in Kenya typically around $700 (£440) – a figure far beyond the means of most people – this could make electricity affordable for millions of families. A connection to SteamaCo’s micro-grid currently costs around $10.

Cheap power for families and entrepreneurs

“Affordability is crucial to expanding access to electricity in developing communities, and doing so in an equitable way,” explains Wheldon. “Paying per unit of electricity used means people can buy power in line with their earning patterns and domestic needs. It makes electricity for the poorest possible.”

And with 1.2 billion people worldwide lacking access to electricity, there is real potential here for technologies of this kind to help alleviate poverty and support sustainable development. What’s more, gaining access to a reliable source of energy stands to unleash a wave of entrepreneurial activity.

SteamaCo has already seen evidence of this in Kenya, where people have launched all kinds of businesses since connecting to their local micro-grid. Hairdressing salons, water pumping stations and mobile phone charging kiosks are thriving, says Duby, while one technician is offering radio repair services, saving locals a 200km round trip to the nearest town.