Kenya’s renewable energy potential is unquestionable. Excellent wind, solar and geothermal resources alongside a government and business community committed to continuing industrial growth mean the country possesses the necessary attributes to pioneer large-scale renewables in Sub-Saharan Africa. Ranked second behind only South Africa for clean energy investment in Africa and sixth globally Kenya’s renewable energy potential is vast; already the world’s 8th largest producer of geothermal energy.
Energy Industry authority, Green Power has developed a report on the country’s potential: Renewable Energy Opportunities in Kenya as part of the build up to Kenya’s first ever conference on Renewable Energy (KENREC) scheduled to take place in early 2017.
Robert Wilson, Director Emerging Markets, Green Power highlights “Our stakeholders and partners from across the global renewable energy sector are always on the lookout for the next growth market. Increasingly Kenya is featuring higher and higher on their list of where this could be. From investors to developers and service providers there’s a real belief that Kenya’s renewable energy sector is on the brink of sustained, long-term growth. In coming to Kenya and launching KENREC we want to be a part of this and help build a platform for the entire value chain to deliver cost effective clean energy.”
What makes Kenya an attractive investment opportunity for renewable energy?
- 1000% increase in electricity by 2033 under the least-cost power development plan
- $1.3 Billion USD to be invested in transmission infrastructure in the next 4 years
- Ranked 2nd for clean energy investment in Africa
- 10gw geothermal potential
- Home to the largest wind power project in Africa
- Solar PV capacity to be 500mw and Wind 3gw by 2030
- Zero rated import duty and removal of VAT from renewable energy equipment
These conditions are not going unnoticed on the global stage. German bank, Deutsche Bank has earmarked a US$500million fund dedicated to investing in renewable energy locally. International investors are typically looking at investment rates of return of 12.5% and above on projects emphasises Eugene Obiero, Senior Manager at CAMCO Clean Energy, a company focussed on financing renewable projects across the continent.
Speaking at the panel briefing, Charles Muchunku, Chairman, Kenya Renewable Energy Association emphasized that the key objectives of industry stakeholders should be to 1. Improve the business environment for renewable energy in Kenya. 2. Develop infrastructure so that renewable power can feed into the main grid. He further highlighted the need for adequately addressing policy challenges within this nascent industry particularly around land rights.
Strathmore University hit a milestone with its 600kw solar project, which is seen as a landmark blueprint for commercial, industrial and utility projects to come. Professor Izael De Silva, Strathmore University reiterated “the Strathmore brand has been on the forefront of offering solutions to current challenges in our society. Blazing the trail in the use of natural energy sources, gives Strathmore an opportunity to be a change agent in our society, showing institutions how this can be done in a commercially viable fashion. Moreover, the Solar PV system will also be a hands-on training tool for training engineers with practical learning experience so much needed in Kenya. This will have a positive impact in the building of the solar industry in our country and the East African region”.