SparkMeter Signs Two New Contracts in Somalia to Modernize African Utilities

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Aug 20, 2024, 05:00 ET

Today, residents in Somalia pay some of the world's highest prices for electricity
SparkMeter is implementing Somalia's first smart grid project with NECSOM, and has started commercial deployment with Caabudwaq Electric Company (CECO)
An additional pilot program with Blue Sky Energy grows SparkMeter's reach to a total of 75,000 homes in Somalia to date

WASHINGTON, Aug. 20, 2024 /PRNewswire/ -- SparkMeter, a provider of grid management services and solutions that increase access to reliable electricity in underserved communities across Africa, Asia, and the Americas, announced new contracts with two utilities in Somalia to support the digitalization of the country's electricity grids.

Today, residents in Somalia pay some of the world's highest prices for electricity. Serving hard-to-reach customers, utilities suffer from loss of revenue. In partnership with local utilities, SparkMeter is offering grid monitoring solutions to address these challenges. To improve the cost and reliability of electricity for Somali consumers, SparkMeter's digitalization solutions help mitigate system losses, manage assets, and forecast consumption patterns.

During the initial pilot program with SparkMeter, Caabudwaq Electric Company (CECO) – the largest utility in Galmudug State – reduced its systemwide electricity losses and improved collections through faster and more accurate meter readings. Today, SparkMeter is planning to deliver its solution across CECO's entire 10,000 customer base. As a result, CECO now plans to raise investment for new clean energy projects.

"In Somalia, the majority of utilities must manage operations manually, requiring utility teams to physically take meter readings and log usage data. The entire process is time-intensive and prone to errors and delays," said Mr. Giama Guled, Chairman of CECO. "Now, with the introduction of SparkMeter's technology, customer meter reads and billing processes are streamlined and customers have a wider range of payment options. This significantly reduces our system losses and allows us to provide better service to our customers."

In tandem, SparkMeter is initiating a pilot program with another Somali utility, Blue Sky Energy, to mitigate system losses.

Following SparkMeter's pilot program with National Energy Corporation of Somalia (NECSOM), SparkMeter commenced a system-wide rollout to all 20,000 of the utility's customers. In a first-of-its-kind smart grid project in Somalia, SparkMeter's solution allows NECSOM to detect and quantify losses, identify overloaded transformers, and offer flexible billing and payment options to its customers. As a result, the utility is improving its financial position and increasing the amount of renewable energy on its grid.

"Before we started using SparkMeter's technology, NECSOM needed two weeks to do meter readings and then generate and distribute invoices to our customers. Now with the help of SparkMeter, we will have access to accurate billing information in less than 10 hours once the technology is fully implemented, letting us spend our time on other essential processes," said Mohamed Ahmed, CFO of NECSOM.

Somalia is one of 30 countries where SparkMeter is active. "The first step to closing the energy access gap in emerging markets is to empower utilities with transformative smart grid management solutions to decarbonize electricity distribution," said Dan Schnitzer, CEO of SparkMeter. "Our utility customers in Somalia are some of the most forward-thinking leaders we've worked with, and we're proud to continue to partner with them to ensure equitable energy access with utilities across the country."

About SparkMeter
Founded in 2013, SparkMeter provides grid-management solutions tailored to emerging markets, where 2.1 billion people live without reliable electricity access. Active in more than 30 countries across Africa, Asia and North America, its simple plug-and-play solution enables microgrids and distribution utilities operating in remote locations to access a range of features – flexible billing, customer communications, and remote monitoring and control – that improve their operations and help them achieve financial sustainability.

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