On A Mission to Find An Electric Motorcycle That Will Usher in Kenya’s EV Revolution
Kisii, Kenya: Disrupting Rural Mobility With Solar Mini-Grids & Electric Vehicles
Powerhive, a solar mini-grid developer and off-grid utility company, supported by the DFID Frontier Technologies Livestreaming Programme, an innovation fund which applies frontier technologies to the biggest challenges of development, is piloting an electric vehicle (EV) business in Kisii, Kenya. Globally, adoption of electric cars has been arduous and slow. Consumers have not exactly been amenable to the idea of a vehicle they view as expensive, having limited range, and which can take hours to charge. Why then, have two and three-wheeled EVs proliferated virtually overnight in Asian cities such as Taipei? Chinese motorcycle and tuk tuk manufacturers learned years ago that simply installing a lithium-ion battery and electric motor in place of a smog-belching gasoline engine results in an affordable, durable, and efficient mass-mobility solution that requires very little maintenance.
Millions of Kenyans use motorcycle taxis (boda bodas) and trike taxis (tuk tuks) every day. Thanks to battery technology and high fuel prices, the total cost of ownership of electric boda bodas and tuk tuks is now substantially lower than their gasolene-powered counterparts, yet e-boda bodas and e-tuk tuks are entirely absent from Kenyan roads. Why? Most drivers are unwilling to risk buying a vehicle that operates on radically different technology than anything they’ve seen, and most drivers don’t have access to an electrical socket where they can charge an EV.
Why Does Powerhive Care About EVs?
By solving the barriers to EV adoption, Powerhive can solve the single most important barrier to rural electrification: That electricity demand on its own is insufficient to justify the investment in rural electrification. The company’s direct sales channel and technology platform provides a simple, scalable means to lease EVs, eliminating the financial risk that prevents drivers from adopting them. Under a battery-swap model, Powerhive can earn revenue by charging EV batteries at the company’s network of distributed solar power stations, making it easy for drivers to adopt EVs even if they don’t have access to their own electricity source. Battery charging revenue can augment direct electricity sales reducing payback periods and making mini-grid assets bankable. The reciprocal benefits of EVs and solar mini-grids have the potential to perpetuate their own growth, resulting in a much faster development of off-grid electricity infrastructure while driving the rapid adoption of EVs.
What Have We Been Up To?
The first step is to find the right vehicle. Boda Bodas and Tuk Tuks must be durable and easy to repair in order to withstand constant use on rough roads and be appealing to users. We visited several factories in Taiwan and tested an e-tuk tuk from an importer based in Mombasa, Kenya to assess the quality and performance of different models. We identified several models that are suitable for the rural Kenya market with minimal modifications to increase seating capacity, top speed, and allow good off-road tire traction. We believe that these models can substitute petrol vehicles in existing rural services, and perhaps precipitate the creation of new ones.
In particular, we’re really excited about the potential of e-tuk tuks to disrupt rural mobility in Kisii. Historically tuk tuks were never introduced to Kisii because they aren’t powerful enough to handle the region’s steep terrain. Because electric motors have so much torque, e-tuk tuks can easily ascend steep hills. As a result, we’re able to introduce tuk tuks to Kisii for the first time in the region’s history, offering a more affordable, safer, and convenient alternative for transporting people, agricultural produce and potentially much more.
What’s Next?
In the coming weeks we’ll be launching a pilot project with the Frontier Technology Livestreaming team at several of our mini-grids in Kisii. We’ll be deploying twelve e-motorcycles and three 6-passenger e-tuk tuks designed for heavy use in rural settings. The pilot will give us the opportunity to validate the business model and technical performance of the EVs during the next six months while learning about customer needs, operational models that minimise cost, and business models that maximise usage. These should provide the lessons needed to scale up the business. We will offer riders a chance to rent or buy the vehicles on a lease-to-own basis. Riders will be able to swap empty batteries for fully-charged ones at a fee at any of three mini-grids, where we will pilot the EV business. As part of the pilot, we also aim to understand the adoption and uses of e-tuk tuks, lease payment default rates, vehicle reliability, charging revenues, and product feedback.
For more than a century fossil fuel technology has had a stranglehold on the transportation sector. The era of dirty energy is coming to an end, and we’re thrilled to be pioneering the transition to clean, solar-powered mobility.
