For an electric motorcycle operator, the cost of acquiring a vehicle is only one consideration. Battery ownership, charging arrangements, operating expenses and the availability of reliable energy infrastructure can influence whether switching from a conventional motorcycle makes commercial sense.

Battery as a Service (BaaS) offers an alternative model in which customers access batteries through a service arrangement rather than necessarily purchasing and managing them outright. The concept presents investment opportunities, but its viability depends on customer demand, pricing, infrastructure, financing requirements and the ability of operators to deliver a reliable service.

For investors, these questions must be examined before committing capital to infrastructure or business expansion.

Assessing an emerging business model

Between May and September 2024, Impact Africa Consulting Limited (IACL) undertook a Battery as a Service Market and Feasibility Study for the Subnational Climate Fund in Kenya and Rwanda.

The assignment examined whether the proposed model was technically practical, commercially viable and institutionally feasible. It also considered market conditions, financial assumptions, operational requirements, potential risks and opportunities for expansion.

The task required an assessment of the entire proposed service model. Establishing customer interest was important, but an investment decision also required understanding the systems, partnerships and financing arrangements necessary to operate the service.

Investigating market demand and commercial viability

IACL began by reviewing concept documents, market evidence, technical information, financial assumptions and relevant institutional records. This provided a foundation for examining the proposed model against existing market conditions.

The team engaged project sponsors, technical specialists, intended users, delivery partners, market participants and relevant authorities. These consultations helped clarify customer expectations, operational requirements and the constraints that could influence commercial performance.

An important consideration was how prospective users might evaluate the service against available alternatives. Affordability, convenience, reliability and access to appropriate infrastructure are relevant commercial questions for any battery service operator.

The assessment examined demand alongside financing requirements and delivery capacity, recognising that market interest must be supported by an operating model capable of meeting customer needs consistently.

Examining technical and operational feasibility

A battery service model requires coordination between equipment, infrastructure, service operators and customers. Its performance can be affected by equipment compatibility, operational arrangements, maintenance requirements and the capacity to provide services where demand exists.

IACL assessed technical practicality, institutional arrangements and delivery requirements to identify considerations relevant to implementation. The work also examined potential operational risks and the conditions necessary for expanding the proposed model.

These considerations were assessed alongside applicable standards, sector expectations and available technical evidence. The objective was to identify practical requirements that investors and implementing partners would need to address during project design.

The assignment therefore connected technical feasibility with commercial planning rather than treating infrastructure development as an isolated engineering decision.

Translating analysis into investment options

The study developed feasibility findings, design options, decision criteria and recommendations intended to inform investment planning.

IACL examined financial and market considerations, implementation risks, institutional responsibilities and possible approaches to managing identified constraints. The analysis also considered monitoring priorities and the practical steps required to advance the proposed service model.

Emerging findings were reviewed and validated with relevant stakeholders, allowing assumptions and recommendations to be refined against the available evidence.

The resulting guidance provided the Subnational Climate Fund and relevant partners with information for evaluating investment options and implementation requirements in Kenya and Rwanda.

Lessons for clean mobility investors

The assignment illustrates the importance of testing the commercial assumptions underlying new mobility services before investing in their expansion.

Customer demand, technology, financing and operational capacity are connected. A technically viable service may encounter commercial difficulties if its pricing does not reflect customer requirements or if infrastructure cannot support reliable delivery.

For investors and project developers, feasibility assessments provide an opportunity to examine these relationships and identify risks requiring attention during project design.

The project documentation confirms the completion of feasibility analysis and investment guidance. It does not establish whether the proposed investments were subsequently financed, implemented or commercially successful.

The practical lesson is that clean mobility investments require credible business models supported by realistic demand estimates, technical capacity and financing arrangements appropriate to the market.