Crafting energy policies to promote development and cater to Africa's burgeoning populace
In Kenya, a shift towards clean electricity has brought about a transformation that offers valuable lessons for Africa's energy access and economic development. Kenya, renowned for its green energy systems, supports the B20 South Africa agenda to scale up clean power infrastructure and strengthen local value chains.
Kenya's government has played a pivotal role in this transition, implementing supportive policies such as VAT exemptions on renewable energy products, Feed-in-Tariff (FiT) schemes, and dedicated projects like the Kenya Off-Grid Solar Access Project (KOSAP). These policies have created a favorable environment for renewable energy investment and adoption, leading to more children attending school after dark, more clinics with steady power, and more local industries creating jobs.
A large portion of Kenya’s rural population lacked reliable electricity access, making decentralized renewable solutions like off-grid solar an effective, scalable, and affordable option. Kenya leads East Africa in off-grid solar sales, demonstrating how renewables address energy deficits where national grids are weak or unreliable.
Pay-As-You-Go (PAYGo) solar financing has revolutionised consumer access by breaking down upfront cost barriers. Over a million solar kits were sold in Kenya in the latter half of 2023 largely due to these models that enable low-income households to afford clean energy.
Kenya’s experience with projects like the Lake Turkana Wind Power Project, Africa’s largest wind farm, shows the importance of active private sector participation combined with public sector support and international financing. This consortium overcame logistical challenges to supply a significant portion of the country’s electricity demand, highlighting the impact of collaboration in renewable energy development.
Kenya has developed a diverse renewable portfolio including geothermal (about 50%), wind, solar, and hydro, allowing it to achieve around 90% green electricity production. This green mix not only supports energy security but also attracts industries such as data centers seeking sustainable power sources, further boosting economic development.
Increasing public consciousness about clean energy benefits has driven demand at the household and commercial levels, reinforcing the market for renewable technologies. By replicating Kenya’s strategic combination of policy, financing innovation, private sector involvement, and diversified renewable energy development, African countries can dramatically improve energy access, reduce dependence on fossil fuels, and spur sustainable economic growth.
However, it is crucial to note that policies must consider the diverse realities of African economies and the people who depend on them. International financing is often inaccessible to those who need it most in Africa. To address this, Kenya advocates for international partnerships that go beyond capital to embrace knowledge-sharing and technology transfer.
The global energy transition must be fair and reflect practical needs on the ground. Africa carries the heaviest burden of energy poverty despite abundant renewable resources. Over 600 million people in Africa lack access to sustainable power. The B20, an international policymaking forum, is hosting its event in South Africa for the first time, focusing on Africa's energy transition.
Kenya's geothermal expertise is now globally recognized, with KenGen, a Kenyan company, building up deep geothermal expertise. The B20 South Africa Energy Transition Task force is focusing on Africa's energy transition, emphasising the active role Africa should play in its own energy policies rather than being a passive recipient.
In conclusion, Kenya's renewable energy progress is a model for global energy sector transformation. By learning from Kenya's experiences and implementing the strategies outlined in this article, Africa can leapfrog traditional energy systems and accelerate its path towards sustainable and inclusive economic growth.
- The supportive business policies implemented by Kenya's government, such as VAT exemptions on renewable energy products and Feed-in-Tariff schemes, have attracted finance from investors, fostering the growth of the renewable energy industry.
- In the healthcare sector, more clinics in Kenya now have steady power due to the shift towards clean electricity, improving the delivery of essential services and promoting healthier communities.
- The success of Kenya's renewable energy initiatives, like the large-scale Lake Turkana Wind Power Project, demonstrates the importance of collaboration between the public sector, private industry, and international financing in driving political and economic development, particularly in the energy sector.
