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Time Ripe for Upscaling of Renewable Energy in Kenya

BY Soko Directory Team · February 22, 2017 06:02 am

The talk on the importance of sustainable energy in global economies is gaining momentum in our own corporate spaces and I dare say this makes me hopeful with regard to the direction we are taking as a country.

As much as we are involved in the discussions on a global scale, it is important to narrow the focus down to a national level, taking stock of what has been done so far vis-a-vis the resources and potential that we have, to effect sustainable energy practices for the good of our economy.

Last year, the Kenya Association of Manufacturers (KAM) held a conference titled “Mainstreaming Climate Change in County Government Operations” to look at the efforts in county level geared towards renewable energies.

In these discussions, it was clear that providing universal energy access to all Kenyans by 2030 will require exponential growth in our country production from current levels.

With outstanding solar and hydropower resources, complemented by efficient bioenergy, wind, and geothermal resources, Kenya can attain universal access for all its urban, peri-urban, and dispersed rural communities.

Our country’s current energy mix is predominantly comprised of four energy sources: Biomass, Petroleum, Hydropower, and Geothermal.

Installed Capacity and Generation Mix (Mw)

Traditional Biomass sources account for 70 per cent of the energy consumption with the rest accounting for 30 per cent. In the electricity sector, thanks to initiatives from some industry players such as Kengen, most of our base load power comprises mostly of Hydro-power and Geothermal.

As the County governments take shape, electricity demand will rise sharply as economic activity increases through energy intensive activities, such as, mining, fabrication of iron and steel products, irrigation, agro-processing, hence, we need to build new energy infrastructure to support millions of Kenyans. How can we do this? Can we power the new Kenya in a way that fosters equitable human development, which is sustainable, secure and protects livelihoods and the environment? Expanding the energy infrastructure in Kenya requires significant levels of finance, markets to trade power, as well as finely tuned policies to attract investors.

A few years ago, the challenges were too many and the barriers too high. But something has changed. Prices in renewable energy have fallen dramatically as demonstrated by our costing studies series.

Political commitment is growing at a similar pace. The National government has embraced clean clergy to fuel sustainable growth. This is demonstrated by the Ministry of Energy taking a lead in cascading the Sustainability for All Programme at a national level. This political commitment and the vision of decision-makers is being articulated through national policies, such as, the 2012 Feed-in-Tariff (FIT) Policy.

In the last three years, over 100 renewable energy projects have received approvals for development under the FIT Policy. Renewable resources are plentiful, demand is growing, technology costs are falling and the political will has never been stronger.

The moment is ripe for the rapid upscaling of renewable energy in Kenya. This is the time for industry to step in and unplug the barriers that have hampered the growth of clean energy in the country.

These barriers are different for rural and urban areas, and require different but parallel solutions. Industry should focus on helping the public-sector overcome these obstacles.

Read:  Resolve Land Acquisition to Spur Renewable Energy Growth in Kenya

We should also look for practical ways to enhance our attractiveness to potential investors through adherence and commitment to clean energy solutions.

Kenya has a proven ability to leapfrog technologies – demonstrated by the rapid adoption of mobile phone communications and attendant innovations such as mobile money transfer services.

We can do the same for clean energy. We have enough renewable energy potential to be entirely self-sufficient and it is possible to do this for millions of Kenyans who still live without electricity in the next few years.


Phyllis Wakiaga —CEO Kenya Association of Manufacturers

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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