Kenya’s renewable sector receives growing capital inflows as renewable energy projects are suited to address energy deficit in remote locations.
Capital inflows into the Kenyan renewable sector have been steadily increasing in recent months, according to Asoko Insight, the Intelligence partner of the Africa Renewable Energy Leaders’ Summit (ARELS). At the start of 2017, renewables represent in fact 87 per cent of the energy mix in Kenya, an impressive performance compared to players such as the European Union (25.4 per cent in 2014) or the USA (10 per cent in 2015).
In line with its Vision 2030, the Kenyan government is scaling up power production through renewable generation, with the aim of growing by 980 per cent, from the current 2,341MW to 23,000MW.
According to Eng. Isaac Kiva, Director of Renewable Energy at the Kenyan Ministry of Energy and Petroleum and speaker at ARELS, “Having adequate power from renewable sources will not only ensure the security of supply and cost effective tariffs; it will enhance the competitiveness of Kenya, and facilitate its socio-economic transformation.”
Charlotte Aubin-Kalaidjian, President at GreenWish and speaker at ARELS, has no doubt about the enormous potential renewable energy projects have in supporting development and economic growth in Africa: “Renewable Energy projects are competitive, reliable and clean sources of power, which can be developed and implemented quickly, both as on-grid utility scale projects and as off-grid captive projects.”
While the majority of capital inflows go to funding larger projects, a rising volume is being channelled towards off-grid start-ups. “Renewable energy projects, particularly solar PV, are inherently suited to addressing energy deficit in remote locations by way of off-grid installations,” Aubin-Kalaidjian explains.