In this special four-part series, Alternative Energy Africa will look at Kenya’s feed-in tariff and the revisions the government is making to create a more investor friendly climate for the country’s renewable energy sector.
As previous articles in this series have pointed out Kenya’s latest FIT modifications, the main question still lingers: What does this mean for Kenya and the African continent?
It is baffling why Kenya did not originally include geothermal in its initial FIT, just as amazing as South Africa overlooking solar in its first draft. It could be plausible that these additions required more analyzing to incorporate a proper system. For instance, the National Energy Regulator of South Africa (Nersa) appeared in a hurry to expedite the country’s renewable energy feed-in tariff (Refit), and perhaps needed more time to include such things as solar photovoltaics. Geothermal is also highly complicated with many technical advancements still in the works, but undoubtedly Kenya saw the sector growing at rapid rates. And tracking trends is the key to any successful implementation.
Meanwhile, other African countries – like Egypt – are working on ways to set up a FIT system. Egypt should monitor closely both Kenya and SA’s solar industry in regards to the effect of the countries’ perspective FITs. However, Egypt will need to mold its FIT to individually fit the North African country, particularly its wind sector. Using the previously established systems in Kenya and SA should only be a reference tool as Egypt has more wind capacity and currently projects (although the North African country is getting a run for its money with projects cropping up all over the continent).
Although it hasn’t been released that Ethiopia is contemplating a FIT system, if it were to do so, Kenya’s geothermal implementation should be of great interest – in addition to other geothermal producing countries like Eritrea and Djibouti with exploration activities going on in Tanzania and Uganda. Therefore, Kenya is setting the stage for many countries and various RE sectors.
Everyone is always discussing how South Africa’s renewable feed-in tariff (Refit) can be a role-model for the continent. However, why is South Africa gaining so much recognition and exposure on its Refit when Kenya implemented a FIT a full year prior to South Africa’s system? Why is South Africa considered the role model for the continent’s implementation of FITs?
The World Future Council’s Campaign Manager for Climate and Renewable Energies in Africa Ansgar Kiene admitted to Alternative Energy Africa that the question was well-founded. He said that it could be attributed to the partnerships and on the ground experts that WFC – an organization with expertise in FIT systems – has in place inside South Africa as opposed to Kenya. He also said, “Of course there is a huge controversy on [South Africa’s] implementation and the monopolistic role of its state-owned utility Eskom.”
Kiene also said, “But you’re right, we should look more closely into Kenya as an example.”
Previous articles in Alternative Energy Africa’s special series:
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