Kenya has been ranked second after South Africa for clean energy investment in Africa and sixth globally. Kenya’s renewable energy potential is vast; it is presently the world’s 8th largest producer of geothermal energy. The country’s geothermal energy accounts for 49 per cent of electricity utilized by homes and businesses in the country, with additional plans to construct the largest wind power plant in Africa to generate 9 per cent of the country’s total capacity by 2030.
A panel briefing and networking reception which held on June 9th convened some of the industry’s thought-leaders for an informative session on the opportunities, possibilities and challenges of this exciting industry.
According to Robert Wilson, 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.”
Some of the reasons that make Kenya stand out as a great investment opportunity for renewables are:
- 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
German bank, Deutsche Bank has allocated a US$500million fund dedicated to investing in renewable energy locally. More importantly, international investors are looking at investment rates of return of 12.5% and above on projects.
Kenya is congratulated; other African countries are encouraged take a cue from them and boost up clean energy activities. This will draw in more foreign investment and revive economies to a large extent while reducing the effects of climate change.