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GTZ Target Market Analysis: Kenya’s Solar Energy Market

By: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH

  • en

Year: 2010
Pages: 26
published by

Kenya boasts a solar market that is one of the most mature and well-established in Africa. At over 1.2 MW in sales per year, the PV market offers opportunities in solar home systems, institutional systems and government procurement. Growth has been constant at over 10 % per year over the past ten years, and the potential off-grid market is estimated to be over 40 MW.

Emerging opportunities in off-grid PV include the telecom industry and the tourism sector. The anticipation is for policy to be introduced soon by the government (through the Ministry of Energy) and Energy Regulatory Commission to enable net metering of on-grid PV. High electricity prices, combined with new policy and legislation are believed to boost the emerging solar water heater industry. Rural electrification programmes continue and will increasingly include solar electric power through the Rural Electrification Authority.

The MoE provides little current policy incentives and targets or allocations for solar energy, however, electricity shortages, fuel prices and consumer demand is focusing attention on this matter. In June 2009, the Task Force on Accelerated Green Energy Development was created by Prime Minister Odinga, from which the first report is timetabled for December 2009. The Green Energy Fund has recently been announced as not supporting solar power as a means of meeting its target of 2000 MW from clean energy. In combination with any new policy and financing mechanisms to assist solar power, improvement will be needed of standards, their enforcement and a better procurement and specification process.

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