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Kenya’s renewable energy capacity is expected to increase

Kenya’s Renewable Energy Auctions Policy (REAP), which went into effect in early 2021, is predicted to dramatically increase Kenya’s renewable power output within next decade, with GlobalData projecting a rise from 1.4 GW in 2020 to 3.7 GW in 2030. This represents a fantastic compound yearly growth rate (CAGR) of about 10.5 percent, according to the data and analytics firm.

According to GlobalData’s report, ‘Kenya Power Market Outlook to 2030, Update 2021 – Market Trends, Regulations, and Competitive Landscape,’ favorable government policies like REAP, that applies to solar and wind power projects of all capacities as well as other renewable projects larger than 20 MW, are assisting Kenya in meeting its goal of increasing renewable electricity generation to 100% by 2030.

“Kenya’s renewable power sector has risen dramatically in recent years, rising at an amazing CAGR of 13.1 percent from 2015 to 2020, thanks to multiple government incentive programs and subsidies,” says Rohit Ravetkar, who works as a Power Analyst at the GlobalData firm. However, due to the rapid growth of gas-centered power generation, which is predicted to increase dramatically from 69 GWh in 2020 to 1190 GWh in 2030, the country would fall short of its energy-generating objective. To cut emissions, the country plans to decommission some oil-fired units and substitute them with gas-fired plants. Meanwhile, Kenya’s renewable electricity generation is predicted to account for 90.1 percent of total electricity generation by 2030.”

Tax breaks, feed-in tariffs, and favorable electricity prices for renewable energy were among the Kenyan government’s programs and subsidies. “The government is cutting the price of renewable power production by omitting hydropower, solar, wind, and solar thermal devices from import taxes and value-added tax by implementing these incentive programs and funding methods,” Ravetkar explains. Kenya has substantial geothermal resources, which the government plans to use to meet a large portion of the country’s power needs by 2030.”

Currently, renewable energy sources account for 70% of the nation’s installed electrical capacity, which is more than 3 times the global average. The move to 100% renewable energy could improve people’s access to the national power system while also lowering industrial costs.

Kenya has made significant investments in geothermal energy generation, which provides low-cost, low-emission electricity. The country is ranked 9th in the world for geothermal power generation capacity, as per the Renewables 2018 Global Status Report (700 megawatts). Lake Turkana in Kenya’s Rift Valley is currently being built as Africa’s largest single wind power facility, with separate investments being made to create other wind power stations.

Off-grid renewable energy is now available to an approximated 9 million Kenyan households, and this number is expected to grow. President Kenyatta, speaking at the last Paris Peace Forum in France, urged Europe as well as other industrialized economies to acknowledge and support his country’s investment in renewable energy. In November, Kenya co-hosted Sustainable Blue Economy Conference with Japan and Canada.