Global index ranks Kenya 6th in green power revolution
What you need to know:
The 2015 Climatescope Index ranks Kenya sixth out of 55 countries that are investing in wind, solar geothermal and other renewable power generation.
The country was ranked second amongst African countries, behind South Africa which was fourth overall while neighbouring Uganda was at position nine.
The index by Bloomberg New Energy Finance says the high ranking is a result of policies adopted in the energy sector which have attracted massive funding in geothermal and wind energy.
A new survey has placed Kenya amongst the top 10 emerging markets that have adopted and put billions in renewable energy, thanks in large part to Turkana Wind Power Project and Kenya Electricity Generating Company (KenGen) investments.
The 2015 Climatescope Index ranks Kenya sixth out of 55 countries that are investing in wind, solar geothermal and other renewable power generation.
The country was ranked second amongst African countries, behind South Africa which was fourth overall while neighbouring Uganda was at position nine.
The index by Bloomberg New Energy Finance says the high ranking is a result of policies adopted in the energy sector which have attracted massive funding in geothermal and wind energy.
The Sh86 billion Lake Turkana Wind Project that is set to produce 310 megawatts beginning 2017 is Africa’s biggest wind project. The report notes that Kenya is a major player in geothermal power production, with KenGen the leader, contributing 49 per cent of the national grid supply.
“The East African country surpassed Japan at the end of 2014 to become the eighth-largest producer of geothermal energy after the State-owned generator KenGen commissioned a further 280 megawatts of capacity. Kenya enjoys extensive clean energy resources, with 10 gigawatt of geothermal and three gigawatt of small hydro potential, according to the draft National Energy Policy,” it said.
The Akiira One 70-megawatt power plant in Naivasha is the first privately-funded venture in geothermal.
Centum Investments, US firms Ram Energy, Marine Power and Frontier Investment Management of Denmark are behind the Sh27 billion project. The Climatescope Index said solar power would be the next frontier for investors in Kenya’s renewable energy sector.
“Kenya has many project developers who were originally attracted by its feed-in tariff — while it was not high enough to make the economics of solar work a few years ago, they have built a pipeline of potential projects. The signs are that lower costs will make some of these projects viable, and we expect to see more project activity over the coming years,” said the report.
Jinko Solar and Sky Power are some of the international companies that have signed deals with the government for geothermal power production. The report, however, said in sub-Saharan Africa there was a drop in investments in renewable energy due to delays in the financing of projects in South Africa.
Investments in sub-Saharan Africa in 2014 stood at Sh280 billion, a 57 per cent drop from Sh65 billion recorded a year earlier.
Overall, the Climatescope Index found that in 2014 $126 billion (Sh12.6 trillion) was invested in renewable energy in the 55 countries that were covered, a 39 per cent increase from the $91 billion (Sh9 trillion) that was invested a year before.
In the meantime Greenlink, a Dutch-based solar firm operating locally, has bought another solar company, RIWIC, for an undisclosed amount. Bart Fugers and Lynn Vanheule the owners of RIWIC, a distributor of solar panels, pumps and other equipment, last week decided to sell their enterprise to their compatriots.
“Due to health issues Lynn and Bart were forced to recently relocate back to the Netherlands. With their departure, we decided that the best future for RIWIK could be realised in the hands of a new owner,” said Greenlink in a statement.
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