Kenya has been 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.
A panel briefing and networking reception held on June 9th, brought together some of the industry’s thought-leaders for an informative session on the opportunities, possibilities and challenges of this exciting industry. In attendance was Inge Stolen, a Senior Investment manager of Clean Energy at Norfund, Robert Wilson who is a Director Emerging Markets, Green Power
“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.” noted Robert Wilson.
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
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.
Kenya’s first ever conference on Renewable Energy (KENREC) scheduled to take place in early 2017 organized by Energy Industry authority and Green Power.