Responding to Solar PV Regulation; The Energy Digest; International Business
Installed solar energy capacity
Over the years, there has been increased investment in the country''s solar industry. The government of Kenya through the Ministry of Energy (MoE) has initiated programs intended to electrify schools and health facilities in rural areas using solar systems. This includes provision of solar powered laptops to primary schools. Also, several players in the industry have developed customized solar solutions like solar home systems, solar lanterns, solar refrigerators and air conditioners that intend to meet the power needs of the rural population. Lastly, some of the diesel powered mini-grids located in regions distant from the grid are being retrofit with solar hybrids. This is in addition to development of solar mini-grids in areas distant from the national grid.
The National Energy Policy is enunciated in Sessional Paper No. 4 of 2004 and operationalized by the Energy Act No, 12 of 2006 now the Energy Act, 2019. The policy recognizes that renewable energy sources have potential to generate income and employment, over and above contributing to the electricity supply and diversification of generation sources.
The Energy and Petroleum Regulatory Authority (Kenya Energy Regulator), the Kenya energy regulatory agency, has developed and gazetted Energy (Solar Photovoltaic Systems) Regulations, 2012 which seek to streamline the solar PV industry. The regulations provide for licensing of solar practitioners (technicians and contractors) in the industry to ensure standards are upheld when carrying out solar installations.
In addition, the government Feed-in-Tariff Policy allows power producers to sell renewable generated electricity to an Off-taker at a predetermined tariff for a given period of time. The sources covered by this policy include wind power, biomass, small hydro, solar, biogas and geothermal.
Kenya Vision 2030, aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment. One of the main pillars in achieving this vision is manufacturing whose main enabler is availability of clean and reliable energy.
The estimated solar potential in Kenya is almost 15000 MW. At the moment the installed capacity is more than 100 MW with the largest installation being Garissa Solar with 55MW installed capacity. In addition, the government has approved expression of interests of more than 35 projects under the Feed-in-Tariff with more than six (6) projects under construction. This is a clear indication that opportunities exist for investment in the setting up of solar power plants, manufacturing of associated components such as charge controllers, inverters and batteries, and also use of solar energy to provide energy conservation solutions.
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The solar energy market has grown significantly in recent years, driven by technological advances and declining costs. It is expected to continue its growth trajectory as countries and companies transition to cleaner energy sources to combat climate change. The market includes a range of products such as solar panels, solar batteries, and solar inverters, which are used in residential, commercial, and industrial applications.
The energy market is expected to continue growing, with increasing demand for energy worldwide as populations grow and economies develop. However, the mix of energy sources is expected to shift towards cleaner and more sustainable options, with renewable energy sources like solar, wind, and hydropower projected to continue growing rapidly. Fossil fuels are expected to gradually decline in importance, although they are likely to remain significant contributors to the global energy mix for several decades, especially in countries that rely almost totally on fossils.
The outlook for the nuclear power market varies depending on the region and country. In some countries, such as China, nuclear power is expected to continue to grow and be an important part of their energy mix. However, in other countries, such as Germany and Japan, there are plans to phase out nuclear power in the coming years. Additionally, the development of new nuclear power projects has been slow due to several factors, including safety concerns, public opposition, and high costs. The construction of new nuclear power plants has also faced delays and cost overruns. The ongoing Russia-Ukraine war has far-reaching effects on the nuclear market, as sanctions imposed on Russia cast doubts on the future of its nuclear industry in the global arena.
The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.
Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.
The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.
Download the Report Below :
The Market for Productive Uses of Solar Energy in Kenya-Status Report 2021_web
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