Kenya’s retail market for solar panels remains thin despite awareness about their benefits. /Jacob Owiti
China is funding a solar energy research project in Kenya aimed at creating a new market for its renewable energy technology.
China is the world’s largest producer of solar heaters and the third largest maker of photovoltaic cells (PV) used in solar panels.
Most of the PV cells are exported to Europe where there is high demand for renewable energy.
But the financial crisis has weakened demand for solar panels in major markets, leading to a 20 per cent drop in the price of PV cells.
Chinese firms are now hoping for stronger domestic demand after Beijing launched a new initiative to promote renewable energy.
But with coal still abundant at home, they will also need to boost and diversify export markets.
Africa has good potential for solar energy, said Li Shimin, manager at the Natural Energy Resource Institute based in Gansu province, north-west China.
The organization has already carried out preliminary research in East African markets and found virtually no solar energy production.
“The only solar heater I saw in Kenya was when I visited was in the Chinese embassy,” said Mr Li.
That should change with a new project backed by about Sh30 million of Chinese government money.
The aim is to investigate demand for solar heaters, cookers and electricity generation in Kenya by carrying out trials on the technology over the next two to three years.
Chinese researchers will assess how to adapt the technology to the Kenyan climate, which is generally hotter than many parts of China. High temperatures can reduce the efficiency of solar panels, Mr Li said.
Around 100 water heaters, 100 solar cookers and 40 solar panels would be installed in both rural and urban areas.
If the first phase is successful, the institute will help a Chinese firm to set up manufacturing of the solar products in Kenya, making them more affordable than imports.
“Most Chinese manufacturers have no idea about where to start in Africa so we’ll act as a bridge to co-ordinate their market entry,” he said.
Teething problems Getting the project off the ground is proving difficult however. Mr Li says he has had no support from Nairobi.
“Everything is ready on China’s side, but there’s been no response from Kenya.”
Plans by a Chinese solar panel maker to set up in Kenya in 2007 have made no headway either. Beijing Tianpu said it would build a Sh9 billion manufacturing plant with a Kenyan partner Electrogen.
However, a person in the firm’s management office told Business Daily this month that plans have been put on hold indefinitely after research showed operating conditions to be tougher than expected.
Kenya urgently needs to invest in new energy production if it is to meet future demand. By 2014 demand is forecast to be around 1,800 megawatts, well above the expected supply of 1,500 megawatts.
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