Learning Hub

The Real Problem: Reliability

Diesel is a hidden tax.
Fuel can average ~$0.30 per kWh.
Full cost is worse.
tribes capital solar education university hospital investment battery
1) The one-sentence truth

Clean energy is easy to admire. Reliable power is hard to deliver.

 

2) The scale (the number behind everything)
  • Roughly 600 million people in Sub-Saharan Africa lack access to electricity.

  • Africa’s electricity use per person is low and has flatlined in recent decades, with one widely cited figure around 530 kWh per person in 2023.

Why it matters:
Low consumption is not a lifestyle choice. It is a constraint on industry, healthcare, education, and modern jobs.

 

 

3) What lack of power blocks (real-world list)
  • Clinics that cannot run basic equipment or keep vaccines cold

  • Students who cannot study at night

  • Businesses that cannot plan production confidently

  • Digital services that cannot stay online reliably

  • Households that pay more for worse energy

 
4) Diesel: the hidden tax

Generators are everywhere because the grid is not dependable.
A World Bank study estimates:

  • millions of generator sites across developing countries

  • annual fuel spending of $30 to $50 billion

  • average fuel cost about $0.30 per kWh for generators

  • full cost often $0.40 per kWh and higher (logistics makes it worse in remote places)

Plain English:
Diesel is not “backup”. For many, it is the main utility. At premium prices.

 

5) Hospitals: uptime beats ideology

WHO is clear: electricity powers basic services (lighting, communications, water supply) and enables safe procedures and immunisation.
It also notes close to 1 billion people are served by health-care facilities without reliable electricity or with no electricity access.

Plain English:
If power fails, care fails. The patient does not care what you tweeted about the energy transition.

 

6) Grid vs on-site: when each wins (simple decision guide)

Grid wins when:

  • it is reliable most of the time

  • tariffs are predictable

  • connection and upgrade timelines are realistic

Onsite (solar + storage) wins when:

  • outages are frequent

  • diesel spend is high

  • uptime is mission-critical

  • you need speed and control over reliability

Best practice:
Many serious sites use both: grid when available, onsite for reliability, diesel as true emergency only.

 

7) The simple maths (use this calculator)

Use your own numbers. No pretending.

Inputs:
A) monthly diesel litres used
B) diesel price per litre
C) generator hours per month
D) average load in kW during generator use

Step 1: diesel cost per month
Monthly diesel spend = A x B

Step 2: kWh produced (rough estimate)
kWh per month = D x C

Step 3: your diesel cost per kWh (fuel only)
Fuel cost per kWh = (A x B) / (D x C)

Reality check:
Fuel is not the full cost. Add maintenance, oil, filters, repairs, downtime, and staff time.

 

8) What to do next inside the community
  • Post your diesel cost per kWh (even a rough one) in the debate thread

  • Ask one question about reliability risk

  • Join the next Office Hours session on uptime and operations

 
 ==> Hidden Tax Calculator <===
 
 
References (list at end of asset)

Educational content only. Not investment advice, and not an offer or solicitation. Investments are high risk and illiquid. Seek independent advice.

Join the Tribes Capital Network

Get early access to the platform connecting facilities, partners, and infrastructure stakeholders.

Get early access to the platform connecting facilities, partners, and infrastructure stakeholders.