Utilities
From The Report: Kenya 2017
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As with most African markets, Kenya’s power sector is defined by a two-track approach, with an eye to boosting generation and improving access. The reasoning behind the latter is clear; electrification rates in the country are low even by continental standards, and this is exacerbated by the modest urbanisation rate. As for the former, in contrast to much of the rest of the continent, Kenya currently has ample supply to meet demand, but has nonetheless set a series of targets to boost generation based on projections of increasing consumption on the back of rapid GDP growth and large public works projects. The government hopes to increase power supply dramatically over the next 12 years, with a large share coming from renewable sources. The future is also likely to involve a refocusing from building capacity to addressing cost and reliability.

This chapter contains interviews with Mugo Kibati, Chairman, Lake Turkana Wind Power.

Articles from this Chapter

Overview

Ahead of the curve: Plans are in place to dramatically boost generation capacity
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As with most African markets, Kenya’s power sector is defined by a two-track approach, with an eye to boosting generation and improving access. The reasoning behind the latter is clear. Electrification rates in the country are low even by continental standards, and this is exacerbated by the modest urbanisation rate. As for the former, in contrast to much of the rest of the continent Kenya currently has ample supply to meet demand, but has nonetheless set a series of targets to boost generation,…

Analysis

Pooling together: Intra-region power trading is set to increase
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Kenya’s power grid is in the midst of an international upgrade, featuring increased connection capacity with neighbouring Uganda, Tanzania and Ethiopia. The country’s potential as a power generator is significant, with supply already outstripping demand and geothermal sources in particular seen as an inexpensive, reliable option. Kenya’s existing reserve margin and plans for capacity additions suggest there is no pressing need to import power. However, in a regional context the production…

Interview

A reliable partner: Mugo Kibati, Chairman, Lake Turkana Wind Power, on financing large-scale energy projects
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Interview:Mugo Kibati What are the main challenges facing large-scale energy projects in Kenya? MUGO KIBATI: A typical challenge is bankability, as projects must be viable enough for equity investors, or else investors will not touch them. Energy projects are also very large and complex, both from the aspect of technical expertise as well as scale. Additionally, many projects are in far-flung locations with limited infrastructure and costly access. There is also the complexity that comes…

Analysis

Tariffs and buts: Finding the right level for prices is a delicate balancing act
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Tariffs are a core aspect of debate in the Kenyan power sector, with a focus on ensuring that they fall to levels low enough to stoke consumption but that they remain sufficiently high to attract investment. Finding the right balance can be tricky. Political Pressure With many sub-Saharan African economies having large low-income populations, ensuring access to affordable electricity is key. In Tanzania, for example, power sector executives were sacked or demoted in January 2017 following the…

Analysis

Alternative measures: Mini-grids are a common solution for those outside the main grid
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Off-grid power has long been a fast and easy solution to the energy access challenge across Africa, largely in the form of diesel-powered generators, open fires or burning kerosene. With the rise of renewable energy, however, along with the reduction in costs associated with it, new off-grid options are now appearing, and Kenya stands out as a laboratory in which these are being tested. The solutions on offer range from household to community-sized, and they address financial challenges as well…

Analysis

Independents day: Governments across Africa are seeking to attract private players
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Power is one of the biggest hurdles to stronger growth in sub-Saharan Africa, with households and industrial firms struggling to ensure a reliable supply of electricity. A number of solutions are being rolled out, from off-grid networks to new transmission infrastructure, but one of the most necessary is new generation capacity. However, the continent needs far more power than its governments can afford to build: $490bn in new projects would be required in sub-Saharan Africa to meet a projected…