Air freight to deliver hydro power

SymbionPowerCEOPaulHinkslovesa

By DAVIDWHITEHOUSE

Fromthe startof2024, flights willbeused totransportturbines fromtheUS to theDemocratic Republic of Congo (DRC) for an initial project by Symbion Power becauseair freight ismuch faster thanshipping, CEO PaulHinks tells The Africa Report Shippingtimes from the US toAfricaare about fourtosix weeks, followed by a wait for port clearanceand the need to get the turbines by roadtoKinshasaand thenon to the final destination, the south-central cityofMbujiMayi. Thistimeframe is “unacceptable”, Hinks says.

Symbion,whichisbased in New York, develops, builds and operates power projectsintheMiddle East, AsiaandAfrica.The company to datehasinvested in 1,378MWof generationcapacityandbuiltmore than 4,000km of transmission and distributionlines.

Project logisticalissues have beenaggravated by Covid-19and theRussia-Ukraine war, Hinks says, withturbines now takingbetween three and six months longer tomanufacture.

“We want to short- circuitglobal supply-chain problems,” hesays Theurgency now isto “prove the conceptand deriskit. It’s worth paying more for thefirst one.”

Havingused suchflightsto supplyprojectsin Iraq, theprospect doesn’t worryhim.Hiscompany undertook about 50flightsto Iraq between 2003 and2010tobringin materialssuch as steel and wiring

“Africa does not come close in difficultycompared to the challenges we faced”inIraqand Afghanistan, Hinks says.

Hugepotential

AccordingtotheAfrican DevelopmentBank(AfDB),the DRC’s hydro-powerpotential, at100,000MW,isthelargestin Africaandaccounts for13%ofthe world’s hydro-powerpotential. Yetthecountry ’s 6%electrification rateisoneofthe loweston thecontinent.

Factorsthathave prevented mobilisationofthe resource, theAfDB says, include poorly developed transmission and distributionsystemsandlackof infrastructure maintenance. The Electricité pourKapanga (ELKAP) non-profitorganisationinthe DRC says that the country’s hydro resources alonecould supplythree quarters ofAfrica’s energy needs.

Hinks has worked inruralelectrification for 40 years In developmentterms, ruralDRC is “as frontier asit gets”, whichispartof theattractiontothe entrepreneurial CEO: “Theplaces withthemost need are the ones where no one wantsto go.”

Experienceshows the security situation inconflict zones often improves whenelectricity becomes available, hesays. “Oncethepower isflowing, the localpopulations want it tobe continuous Our experience has been that ‘hot’ areas are oftencalmed by theadvent ofelectricity.”

Small-scale industries alsotend toquickly emerge insuchcases. “Someonewillbeginmillingflour andselling it, or they might build a workshop Once thishappens, village economies improve and the growthis exponential.”

Symbionhaspartnered upwith San Francisco-based Natel Energy, whichhasinventeda new type of hydropower turbine, for its Africa projects. Thepartnership, called MyHydro, planstoinvest$1bn over thenext10 yearstoinstall hydropower-based systemswith mini-grids acrossAfrica.

Poweringanoff-gridcity

TheDRC governmenthassigned anagreement for33MyHydro sites, whichHinks estimatesmay cost$500mto$600m.Theplanis toseekto raiseabout70%ofthat in equityand debt,withthe rest beingself-financed. Hinks says thatthecostings used are “veryconservative” and expectsthat turbine prices will fall over time The company isindiscussionsto raise debt for thefirst project, but would inany casebeable to go ahead on anall-equity approach,Hinks says.

Thefirst installations willbe onthe LubiRivernear MbujiMayi.The city was developed by Europeancolonialistsafter diamonds were foundthere in1909, butelectrification has passed it by. Mbuji-Mayihasa population of about 3 millionpeople andiscompletelyoffthegrid.

1.2MW

PhaseoneofSymbion’sprojectto deliverpowerintheDRC,withfirst electricityexpectedinQ32024

Construction of a 4.48MW facilityat Kabeya-Kamwangais expected tostart in the second quarterof2023. Theplan is to divert waterfromtheLubiRiver through a canaltothe power plant, where itwillpassthrough a turbine before being returned intotheriver a fewmetres away.

Thecompany says the process keepsthe river’s fishsafe, and that the turbines can be installed using locallabour and materials.

Phase1 ofthe project (1.2MW) willbe readywithin14months, whichmeansthatit willbe deliveringelectricityinthethird quarter of 2024. Thebalanceof 3.6MWwill becompleted inthe firstquarterof 2025. Inthe meantime, construction oftwo furtherplantsnearMbujiMayiisduetostart by theendof 2023, and other plantswillbebuilt inButemboandBukavu.

Symbionhasalso wona tender to develop theMakelele biogas blockon Lake Kivu.Thecompany willinvest$300mto developa 60MWgas-to-electricitysystem. EvenKivu with itsM23insurgency doesn’t faze Hinks. On a onetoten scale of danger, hesays the region ranks asfive orsix, compared to10 for IraqandAfghanistan.

Elsewhere,Symbion plansto build andoperate a $97m35MW geothermalpower plantin the Menengai volcanic craterin

$300m

Kenya’s Great Rift Valley. The company has a 25-year power purchaseagreementwith Kenya Power andLighting Company, and a steamsupplyagreement withthe GeothermalDevelopment Company parastatal.

DRC, Hinks notes, has 50% of Africa’s water, yet has oneofthe continent’s worst power supplies. Hinks argues thatthecase for hydropower isstrengthened when an existing grid system is lacking, becauseneithersolarnorwind power are constantly generated.

24/7generation

“[Solarandwind]arefinewhen theyareconnectedtogridsystems thathave other formsof generation capacity,” Hinkssays.“Butifthat isnot availableitmeansthatthere isashortfallofcapacity every time theystopoperating.”

Costtotheend-useristhe decisive factor. Off-grid solaris very expensive because analternative sourceofpower capacityis required, suchas a diesel generator Solarprices are also loaded in favourofurbanconsumers.

In Kenya, for example, thecost forahouseholdtobuypowerfrom thestateutilityinNairobiisabout $0.18per KWh,Hinkssays.In ruralareasthe rates forisolated mini-gridsareaminimumoftwice thatcost.That’swithouttaking intoaccountthe factthatdisposableincomesareusuallyhigherin cities andsothe real burdenonthe ruralconsumerishigher,headds.

Provided that theriversused are perennial,with verified historical flowrates, hydropower operates 24 hoursperday, 365days per year, Hinks says Thetariffs from a MyHydro power plant willbe closertothecostofthestateutility in Kenya in off-grid situations, at around $0.19, Hinks says. Ifthe power ismade available on-grid, thecostislikelyto be closer to 10 cents, headds.