Data analytics and mobile technologies are two of the five factors that could assist in providing electricity to the 1.2 billion in the world (95% of them in sub-Saharan Africa) who remain without electricity.

Speaking at the launch of PwC's Electrification Beyond The Grid analysis paper in Sandton on Monday, PwC partner Angeli Hoekstra said the study provides "an insight into various movers and shapers involved in off-grid electrification projects on the African continent".

Interview participants included developers, technology providers, government officials and policy experts. Their perspectives were gained on the factors influencing the development of this solution to energy access.

Hoekstra said two-thirds of people without electricity will remain so by 2030 (the target year to achieve the newly agreed post-2015 UN Sustainable Development Goal of universal access to energy) unless governments adopted a more comprehensive approach.

"Faster progress is needed and it can be achieved if national energy policies adopt a more comprehensive approach to energy access. A broader transformation is expected in the energy sector in the coming years, in the wake of technological advances both for grid-connected and beyond the grid customers," she said.

Georg Baecker, senior manager for power and utilities at PwC Advisory, said that the group had several recommendations to accelerate the provision of electricity.

Access plans

First is that governments should develop an integrated energy access plan. "For decades we've said that either you're connected to the grid or you have nothing, but that has changed. We now have a tier system on how we think of energy access, moving from small solar home systems (SHS), to mini-grids built around an anchor client like a hospital, to finally connecting into the national grid. The technology is there and it's not the technology that's the problem. The challenge is to develop new energy access plans. Even mini-grids can cost $3 000 or more per connection and SHS solutions are more affordable."

Hoekstra said that a number of companies had developed innovative business models using mobile technology to assist customers in paying off their small solar home systems to replace kerosene lamps. In the process, the customers built up a credit record and could qualify later for buying larger systems that could power fridges and other appliances. As appliances became more eco-friendly and consumed less power, they added momentum to the move towards solar, she said.

Second, Baecker said governments had to "create an enabling environment for off-grid solutions".

"Having the plan in place will create confidence for investors and for consumers. If we develop an enabling environment for off-grid, consumers will know what they have. Mini-grids are not standardised, so governments can provide technical, financial and commercial support for mini-grids to take off in Africa. Another issue is import taxes (on which create an immediate problem for green tech. Building the awareness of economics for off-grid markets, raising awareness."

Third, PwC advises that governments embrace and promote the growth of mobile payments.

"Mobile payments go hand-in-hand with the development of solar home systems. Kenya and Tanzania are good examples of this. On the mini-grid side, the funding of high capex investments in the beginning make it attractive and affordable for people in rural areas to pay via mobile solutions too," Hoekstra said. This, she said, is underscored by data analytics, which allows energy companies to profile their existing customers and expand the products they offer to consumers based on their knowledge of them.

"For example, Mobisol is looking at a solution to fly drones around to deliver packages, such as medicine, and drones will recharge on the solar panels that have been installed on the roof. From being an electricity supplier, Mobisol can now sell anything because they have the customer relationships."

These four aspects were crucial, but for real results, someone had to drive the access, Baecker said. "There is a need for an energy access champion who can remove bottlenecks and monitor and communicate what achievements have been made or what changes need to be made to accelerate electricity provision. There are good examples in Africa, but the best example we have seen is in Bangladesh. If you have a strong government champion, you have much faster results."

Hoekstra said PwC saw the off-grid market going "through a complete transformation, which will be driven by customer demand".

"People want access to electricity, and if you devise the best business plans to give it to them, you will have the customers."