Target Market Study Kenya
Solar PV & Wind Power
German Energy Desk
Nairobi, July 2013
1
Table of Contents
Executive Summary ................................................................................................................ 3
1.
Overview of the power sector ........................................................................................ 9
1.1.
Energy mix .............................................................................................. 9
1.2.
Development of electric power supply and demand ............................... 10
1.3.
Role of renewable energies ................................................................... 11
1.4. Power tariffs .............................................................................................. 13
1.5. Power sector structure .............................................................................. 14
2.
Regulatory framework for solar PV & wind ................................................................ 15
2.1.
Feed-in Tariff-Scheme (FIT) .................................................................. 15
2.2.
Power purchase agreement ................................................................... 17
2.3.
Energy regulations ................................................................................. 17
2.4.
On-going review of the regulatory framework......................................... 18
3. Status solar PV & wind energy sector ............................................................................. 19
3.1. Status of solar PV...................................................................................... 20
3.1.1 Off-grid pico & SHS ................................................................................ 22
3.1.2 Off-grid professional ............................................................................... 25
3.1.3 Grid-connect (Small scale) ..................................................................... 26
3.1.4 Grid-Connect (Utility-scale)..................................................................... 27
3.2. Status of Wind Energy Sector.................................................................... 28
4. Market potential and planned projects .......................................................................... 31
4.1. Overall sector outlook ................................................................................... 31
4.2. Planned projects ........................................................................................... 34
4.2.1 Government projects: Institutional and SHS segment ............................. 35
4.2.2 Government projects: Hybrid mini-grids .................................................. 35
4.3. Undeveloped market opportunities................................................................ 38
4.3.1
Utility power Generation ..................................................................... 39
4.3.2
Green building sector ......................................................................... 40
4.3.3
Agriculture .......................................................................................... 42
4.3.4
Tourism .............................................................................................. 45
4.3.5
Telecom ............................................................................................. 46
4.3.6
Manufacturing Sector ......................................................................... 48
5. Engagement and positioning of German companies .................................................... 51
6. Annexes .............................................................................................................................. 58
Annex 1: List of Players ........................................................................................................ 58
Annex 2: Bibliography and Resources .............................................................................. 76
2
Executive Summary
In general, Africa countries have not, until very recently, actively pursued the
potential of small-scale distributed renewables as a core element of the central
power system expansion. Instead, renewables such as PV were, and still largely are,
considered as part of efforts to conduct off-grid rural electrification and increase
general energy access. This is still the approach that most African Governments
and international donors take.
The problem --- for German PV players --- with this is that the approach is donor aid,
charity and Government-led and that it does not necessarily build the overall
solar/PV sector. Instead it builds a sector that is set up to pursue grant-funded smallscale, off-grid projects that are unattractive for many German companies. As well,
off-grid solutions are increasingly over-the-counter and dominated by low cost
equipment from the Far East.
However, the increasing ability of PV to compete on-grid and the increasing
awareness of consumers, suppliers and policy makers of the on-grid role of PV is
changing the situation. Although major donors such as the World Bank and UN (in
Africa) still are primarily focused on use of PV in off-grid access, more players are
becoming interested in PV’s overall role in commercial applications (both off and on
grid).
Generally, Kenya’s solar and wind market is developing quite dynamically. The
regulatory framework has become more attractive over the last year: Apart from
a technology-specific Feed-in-Tariff-scheme, which has been introduced many
years ago, there are now standardized PPAs available, which reduce the
transaction costs for projects in the range of 500 kW and 10 MW. In addition, Kenya
works on regulations for the net-metering, which has been introduced in the
Energy Bill 2012. Once such regulations will be in place, experts expect the take-off
of the small & medium scale grid connect market segment. Finally, the Solar PV
regulations will be of benefit for the German companies, because the overall
requirements at quality of products and systems will be higher, which of course
favourizes German companies.
With regard to solar PV, currently the off-grid market segments are the most
important ones (around 20 MW installed capacity in total). Of most relevance for
German companies is the so-called professional off-grid market segment, in which
public facilities such as schools and health centres are electrified through solar PV
(mostly driven by the Government and NGOs) and where commercial/ industrial
clients such as hotels, lodges, camps but also telecommunication companies (base
stations) and farms invest in Solar PV for their off-grid facilities.
The grid connect solar PV market is not yet of much relevance. In the small &
medium scale grid connect segment, Solar PV has just recently become an
issue and option, especially because solar PV has been considered to be an option
primarily for the electrification of remote areas. But nowadays, more and more power
consumers are tired of the unreliable power supply from the main grid and suffer
from the high fuel/ diesel costs (around 1 USD/ litre) for the stand-by diesel
generators. Although the net-metering is not yet in place, there are some “early
movers” investing in solar PV systems (e.g. Uhuru flower farm). Dozens of projects
are under development.
With regard to the utility-scale grid connect market, most developers and experts
are of the opinion that the FIT (for power from main grid connected systems) of 12
UScents/ kWh are not enough to make investments in Solar PV systems
commercially viable. There are some project ideas around and feasibility studies
have been conducted, but no project has been realized up to now. Of more interest
3
are the isolated mini-grids: There are still few hybrid ones (just 510 kW Solar PV in
total), but 9,4 MW solar PV are planned for existing mini-grids and especially for
Greenfield mini-grids. The FIT of 20 USCent in mini-grids is more attractive.
In the wind power sector the situation is different: While the wind off-grid market
is by far lagging behind solar PV, the large-scale grid connect market is quite
important: The installed capacities of 5,1 MW are not yet much, but projects of >500
Mw are in the pipeline; 5 projects are in an advanced stage. Grid connected wind
power (utility scale) has high priority for the Government: By 2030 wind power
capacities shall amount to 3 GW. However, the bottleneck is actually the grid, which
has still a limited absorption capacity.
In isolated mini-grids wind power is supposed to play a less important role than
solar PV: 3,1 MW wind power systems are planned for the extension of the existing
mini-grids and the Greenfield projects.
Most German companies can bring in their strengths especially in those market
segments, which requires more comprehensive systems and respective system
integration knowledge and are not so much off-the-shelf products. Thus, the most
relevant segments are mainly the professional off-grid segment as well as the
small & medium grid connect segment (with project sponsors from private
sector, i.e. commercial/ industrial/ service sector):
Sub-sector
Opportunities/ indications for potential
Building sector
 UN-Habitat programme on Energy Efficiency in
(Small & medium grid
Buildings/ Green Building  review of building codes
connect)
 IFC financing (20 Mio. USD, through Housing Finance
Kenya) to encourage eco-friendly building
 Early movers, e.g. Strathmore, UNEP etc.
Flower farms
 Many farms suffer from bad power and face high fuel
(Small & medium grid
costs for diesel generators
connect)
 KAM RTAP programme (French credit line through 2
local banks) works on feasibility studies for 2 big flower
farms
 Early mover: Uhuru invested in 75 kWp solar PV system
 Other flower farms expressed high interest in solar PV
(e.g. SIAN)
 General trend towards “sustainable production” in
consideration of European buyers
Tea Factories
 High interest of Kenya Tea Development Agency
(Small & medium grid
(although first priority is given to small hydro); KTDA
connect)
manages 54 tea factories
 Systematic approach of KTDA to reduce energy costs
 Tea factories are usually “at the end of the power line”
and suffer a lot from grid failures/ outages/ bad power
quality
Tourism
 Growing sector, number of tourists visiting parks and
(off-grid professional
game reserves is steadily increasing;
and small & medium  High trend to ecotourism facilities
grid connect)
 Quite a number of lodges and camps with olar PV
systems (e.g. Severin)
 Interesting opportunity: tourism facility as “anchor
consumer” which supplies power also to community;
some tourism facilities are community-based
Telecommunication/  Around 10% (577) of the base stations are off-grid in
4
base stations
(off-grid professional)
Manufacturing
(Small & medium grid
connect)
Kenya
300 new BTS in 2013  growing sector
12% of base stations have already green power
Initiative “green power for Mobile”
Production loss due to power outage 7%, 44% of
companies have a diesel generator as stand-by
 Companies which were nominated for the Energy
Management Award of KAM
 Companies with comprehensive CSR programmes




The chances for German companies in the Pico & SHS segment are limited as it is
highly competitive and spoiled by bad quality products and systems. According to a
survey (75 systems were inspected), 9% of the owners said that the system was a
disaster right from the beginning and 40% were not very satisfied because the
system was not working well.
For German companies, Kenya is not a completely new market any more: For
instance, Energiebau Solarstromsysteme (e.g. solar PV roof-to p-system on UNEP
building), Donauer Solartechnik (e.g. lodge electrification with solar PV, hybrid
system for refugee camp with 15 kWp) and Juwi are already present through local
partners. By having built the first grid-connect solar PV systems (UNEP building,
SOS village), German companies are the pioneers in the emerging market segment
for small & medium grid connect systems. This can be used by other German
suppliers.
With regard to the market entry strategy, it should be developed in close
consideration of the local challenges in the respective market segments: In the pico
& SHS market segment German companies have just a chance if they address
niches, as the market is highly competitive and spoiled by (off-the shelf”) products
from the Far East. Mechanisms to ensure quality of products and systems such as
the licensing of technicians, importer, vendors and manufacturers has just been
introduced (Solar PV regulation) but they still need to be implemented (e.g. training
of technicians).
In the professional off-grid segment and especially in the emerging segment of small
& medium grid connect German companies (solar PV & wind) can be successful, if
they are willing to provide an value-added, e.g. through contributions to training of
local stakeholders and supporting the clients to get access to funds (donor funds,
credit lines, equity funds, German export credit financing, ESCO-approach etc.).
Projects on training and developing an ESCO-model can be done in cooperation with
the German implementation agencies for development cooperation (GIZ, DEG and
Sequa), e.g. within the programme develoPPP.de.
5
List of Acronyms
DFID
Department for International Development (British)
EAC
East African Community
ERC
Energy Regulatory Commission
FIT
Feed in Tariff
GDP
Gross Domestic Product
GNI
Gross National Income
GWh
Gigawatt Hours
GSMA
Global Association of Mobile Phone Operators
HFO
Heavy Fuel Oil
KenGen
Kenya Electricity Generating Company
KPLC
Kenya Power and Lighting Company
LED
Light Emitting Diode
MNOs
Mobile Network Operators
MW
Megawatt
PSMP
Power Sector Master Plan
REA
Rural Energy Agency
REMP
Rural Electrification Master Plan
REFIT
Renewable Energy Feed-In Tariff
RETAP
Renewable Energy Technical Assistance Program (Kenya Association
of Manufacturers)
SHS
Solar Home System
SPPA
Standardized Power Purchase Agreements
SREP
Scaling Renewable Energy Program
USAID
United States Agency for International Development
USD
United States Dollar
Currency
Kenya Shilling Exchange Rates June 2013
Kshs = 1 US$
Kshs = 1 €
6
List of Tables
Table 1: Major economic sectors contributors in Kenya
Table 2: Energy mix
Table 3: Levelized cost of energy (technology wise)
Table 4: Potential and targets for renewable energies
Table 5: Power tariffs
Table 6: Feed in tariffs (FIT)
Table 7: Application process for FIT
Table 8: Main market segments of the solar PV market in Kenya
Table 9: Social entrepreneur approaches to solar PV sales
Table 10: Solar PV grid connect pipeline
Table 11: Existing off-grid stations
Table 12: Approved wind power projects
Table 13: Major planned wind projects in Kenya
Table 14: Major barriers to wind project development in Kenya
Table 15: Solar PV “planned” projects
Table 16: Planned rural electrification of public institutions
Table 17: Proposed additional RE projects in existing mini-grids
Table 18: Proposed RE in the mini-grids under construction
Table 19: Greenfield projects
Table 20: Opportunities for German companies
Table 21: Tourism sector indicators
Table 22: Estimated energy requirements for BTS
Table 23: KAM Industrial Survey, 2012
Table 24: Selected “pioneer” companies in energy &CSR
Table 25: German companies with engagement in Kenya
Table 26: Sources for financing solar PV and wind projects
Table 27: Opportunities for German companies (mini-grids)
Table 28: Recommended procedure (export credit financing)
Table 29: Cover policy for Kenya
7
List of Figures
Figure 1: Primary energy consumption
Figure 2: Electric power mix
Figure 3: Landscape of Players
Figure 4: Kenya PV market set-up
Figure 5: Modelling Kenya’s PV potential
Figure 6: Kenya’s PV costs vs grid electricity costs
Figure 7: Subscriber growth (numbers, growth rate)
Figure 8: Power outages (telecommunication base stations)
Figure 9: Off-grid deployment
List of Boxes
Box 1: Energy entrepreneur Durama Mobile Charging
Box 2: Lighting Africa
Box 3: Business model MobiSol
Box 4: Credit line of AFD for private investments in renewable energies and energy
efficiency
Box 5: Kenya Tea Development Agency (KTDA)
8
1.
Overview of the power sector
The Republic of Kenya is located in East Africa on the coast with the Indian Ocean.
With a total area of 582,646KM2, Kenya lies on the equator and is situated between
longitudes 34E to 42E and latitudes 5.5N and 5S. Somalia borders Kenya to east,
Ethiopia to the north, South Sudan to the northwest, Uganda to the west and
Tanzania to the south.
Nairobi the capital city is both a
political and commercial capital and
acts as the hub for financial
services, international companies
and donor organizations based in
the East Africa region.
The total population is over 41million
people with 32.7% found in the
urban areas and 67.3 % found in
rural areas.Kenya’s economy is the
largest in the East Africa region with
a 2012 GDP of 41.18 billion USD (an
increase of 4.6% over 2012) and is
projected to increase by 6% in 2013.
The GNI per capita as at 2011 was
$820. This is driven by a stable
macro-economic
environment,
increased domestic demand, modest
growth in credit and a liberal market
with little government influence. The
major contributors to the economy
include agriculture, tourism, industry and manufacturing sectors.
Table 1: Major economic sectors contributors in Kenya
Major Sectors in Kenya
Agriculture and Forestry
Wholesale & Retail trade
Transport & communication
Manufacturing
Financial intermediation
Construction
1.1.
% Contribution to the GDP
in 2011
24%
10%
10.6%
9.4%
6.4%
4.1%
% Growth in 2012
3.8%
6.4%
4.0%
3.1%
6.5%
4.8%
Energy mix
The overall energy supply is mainly based on the use of biomass, which has a share
of 76% at the primary energy consumption.
The current electricity generation capacities amount to 1708 MW (October 2012), of
which 48% are hydro power plants. Thermal power plays the second role (38%) and
includes emergency power plants, which are run on heavy fuel oil/ diesel. These
temporary power plants have a capacity of around 120 MW.
9
Figure 1: Primary energy
consumption, 2010
Coal
0%
Oil
17%
Figure 2: Electric Power Mix (% of
installed capacities), 2012
Hydro
1%
Geother
mal,
Solar,
Wind
6%
Biomas
s, waste
76%
Geother
Bagasse Wind
mal
0%
2%
12%
Hydro
48%
Therma
l
38%
Table 2: Energy mix
Technology
Installed capacity (in
MW)
Hydro
810
Geothermal
209
Thermal Oil
643
of which rental power
(120)
Wind
5,1
Cogeneration
26
Total
1693
Effective capacity (in
MW)
766
204
595
5,1
26
1596
Peak demand is around 1268 MW, between 18.30 and 21.30 by average.
1.2.
Development of electric power supply and demand
Kenya’s Vision 2030 plans to make the country achieve “middle-income”
status by 2030. Vision 2030 ambitiously targets a 10% growth in GDP annually in
order to meet the goal. Various projects geared at achieving vision targets have been
developed that are likely to result in significantly increased energy demand.
A detailed energy demand forecast was conducted in the context of the Least Cost
power Development Plan (2011). According to that plan, the electricity demand will
grow by 11,9% p.a (low growth scenario) up to 15,3% p.a. (high growth scenario)
until 2030.1 This means, that the current electricity production has to be increased
from 7.670 GWh to at least 77.307 GWh (low growth scenario) until 2030, in the
medium scenario to 103.518 GWh 2 . Peak loads are projected to grow to about
2,500MW by 2015 and 15,000MW by 2030. To meet this demand, the projected
installed capacity would have to increase gradually to 19,200 MW by 2030. Besides
the expansion of own capacities, Kenya will meet the increasing energy demand
1
However, according to many analysts this is too high.
2
In consideration of suppressed demand and of technical/ non-technical losses.
10
through the interconnections to the neighbouring countries. For instance, the
interconnection with Ethiopia (which is currently developing its hydropower resources
at a rapid rate) will increase the power availability in Kenya.
The drivers of the rising power demand are as follows:
 Economic growth: 9% by average after 2015 (medium scenario)
 Further rural electrification: total electrification rate of 88% by 2030 (medium
scenario), currently this rate is estimated to be 22%
 Vision 2030 flagship projects, e.g. ICT Park with estimated energy
requirements of nearly 3000 GWh/ year, iron and steel smelting industry in
Meru with a need of 2000 GWh, second container terminal and free port in
Mombasa (750 GWh)
After reduction of the technical and non-technical losses by 4% in the period 2002 –
2010, they still amount to 16% (3,5% in the transmission grid and 12,5% in the
distribution grid).
The suppressed demand, which is reflected by power cuts and load shedding, was
estimated in 2012 to be around 80 MW or 25 GWh; by 2015 this gap shall however
be closed.
1.3.
Role of renewable energies
In consideration of the whole scope of renewable energies, they play a crucial and
even increasing role in the energy mix in Kenya. The high share of hydropower
(nearly 50% at the power mix makes the energy supply very sensitive to the water
availability in the seasons; in addition to that the price for the diesel, with which the
emergency power plants are run, for instance, during dry seasons, increased a lot
and makes the power generation more expensive3.
Thus, more a more attention is attached to renewable energies, which are to some
extent very low cost energy options. According to a detailed analysis which has been
conducted in 2011, geothermal and wind are the least cost options for energy supply
(base load):
Table 3: Levelized cost of energy (technology wise)
Technology
Load factor
LCOE (UScent/
kWh),
8% discount rate
Geothermal
93%
6,9
Wind
40%
9,2
Nuclear
85%
10,2
Low Grand Falls
60%
10,9
Hydro
GT-Natural Gas
55%
11,3
Coal
73%
12,7
High Grand Falls
60%
13,1
Hydro (e.g.
Mutonga)
LCOE (UScent/
kWh),
12% discount rate
9,2
12,26
14,5
15,1
12,0
14,9
18,1
The current diesel price is 99,16 KSH (1,14 USD); in October 2012 the price was even 106,11
KSH (1,22 USD); in September 2011 the price was 108,17 KSH (1,25 USD).
3
11
Therefore, especially geothermal resources are systematically explored: The
geothermal potential is estimated at 10 GW; by 2030 the capacities of 5,5 GW shall
be installed (current: 209 MW). Wind is considered as the second least cost option
and shall also be increased tremendously, from the current 5,1 MW to 3 GW by 2030
(2 GW by 2022).
Table 4: Potential and targets for renewable energies
Technology
Potential (in MW)
Targets (in MW),
by 2030
Hydro
1.500
Geothermal
10.000
5.500
Wind
4.400
3.000
On-Grid Solar PV
500
Current installed
capacities (MW)
209
5,1
1.3
Solar PV has been considered mainly as a reasonable and cost-effective option for
areas, which are not connected to the main grid. Currently, about 30% of the total
population has access to grid power, with rural populations well below [] access.
In the past, stand-alone systems for houses (SHS) and public facilities (schools,
health centres, administration offices etc.) have been promoted. According to the
Least Cost Power Development plan (LCPDP, 2011), LCOE from Solar PV were
assumed to be between 12,3 USCent/ kWh and 22,2 USCent, mainly depending on
the capacity factor (15-25%), based on figures from the US EIA. Recently, solar PV
is attached more importance also in the context of isolated mini-grids and, even for
feeding in the main grid, as it will be described in the next chapters. The target is to
generate power from 500 MW Solar PV capacities, by 2030, and to have installed at
least 300.000 units of SHS; by 2022 solar PV capacities shall amount to 200 MW
and at least 200.000 SHS shall be installed.
Solar ressources
Kenya receives good solar insolation all year round (coupled with moderate to high
temperatures) estimated at 4-6 kWh/m2/day.
Wind ressources
Kenya has a proven wind energy potential of as high as 346 W/m2 and speeds of
over 6m/s in parts of Marsabit, Kajiado, Laikipia, Meru, Nyandarua, Kilifi, Lamu, Isiolo
Turkana, Samburu, Uasin Gishu Narok, Kiambu Counties among others.The Ministry
of Energy developed a Wind atlas in 2008 with indicative data, based on information
from 35 meteorological stations in Kenya. This gave just an indication,as
investments in wind power plants are usually done on a basis of wind measurements
at specific sites over 2 years.
To augment the information contained in the Wind Atlas, MoE with the assistance of
Development Partners on the one hand and KenGen have installed more than 60
wind masts and data loggers in various counties to collect site specific data. For
instance, Isiolo (Mweromalia, kiremu, Matabiti area) have a monthly average speed
up to13,5 m/s (e.g. in June and July 2012).
The North West of the country (Marsabit and Turkana districts) and the edges of the
Rift Valley are the two large windiest areas (average wind speeds above 9m/s at 50
m height). The coast is also a place of interest though the wind resource is expected
to be lower (about 5-7 m/s at 50 m height). Many other local mountain spots offer
12
good wind conditions. Due to the monsoon influence, some seasonal variations on
wind resource are expected (low winds between May and August in Southern Kenya).
1.4. Power tariffs
By principle, power tariffs in Kenya are cost-reflective; they are currently adjusted
according to fuel costs, foreign exchange adjustments4 and inflation. Beyond the
basis consumption tariff and these adjustments, consumers have to pay taxes, levies
or duties which are included in the final end-user price:
-
VAT at 12% charged to the fixed charge, the demand charge, the forex
adjustment and to the fuel cost charge.
Rural Electrification Programme (REP) levy at 5% of revenue from Unit sales.
Energy Regulatory Commission (ERC) levy at 3 KES cents/kWh.
The regulation how to calculate the tariffs can be downloaded from the website of the
ERC, http://www.erc.go.ke/ctariff.pdf .
Following table gives the tariffs (in KES) from December 2011:
Table 5: Power tariffs
Tariff component
Basic consumption
tariff
Fuel cost
adjustments
Forex Foreign
exchange
adjustments
Inflation adjustment
TOTAL (without
ERC and REP levy)
TOTAL incl. VAT
ERC levy
REP levy
TOTAL
Domestic Consumers
>1500 kWh/ month
Small Commercial,
240 – 415 V
11,15
8,96
Commercial and
Industrial
>15000 kWh
5,75
7,30
7,30
7,30
1,23
1,23
1,23
0,13
19,81
0,13
17,62
0,13
14,41
22,19
0,03
0.56
22,78
19,73
0,03
0,45
20,21
16,14
0,03
0,29
16,46
Power sector regulations provide a review of electricity tariffs every three years but
there has been no review since 2008. Kenya Power was more recently pushing for a
21 per cent rise in the fixed charge and consumption tariff starting March 1 but the
Energy Regulatory Commission (ERC) delayed the plans citing need for deeper
consideration of stakeholder views.
4
A number of factors influencing the cost of power generation are affected by fluctuation in foreign
exchange rates, for example loan repayments for some electricity projects which have been financed
and need to be paid back by foreign currency. End-user electricity prices are therefore liable to an
adjustment factor for foreign exchange rate fluctuation, which reflects the exchange rate of hard
currencies against the Kenya Shilling.
13
The power firm had planned to further increase the tariffs by nine per cent in July to
cover for rising expenses. The tariffs were to rise further in July 2014 and July 2015
by four and 11 per cent respectively.
1.5. Power sector structure
Following the enactment of the Energy Act No. 12 of 2006, the energy sector was
restructured to bring on board more players in line with the new functions. That
means for instance, that the generation has been unbundled from transmission and
distribution. Following chart shows the landscape of players.
Figure 3: Landscape of players
Ministry of Energy (MOE): Responsible for policy and overall guidance of the sector
Energy Regulatory Commission (ERC): Oversees all regulatory functions including
coordination of the development of indicative energy planning, tariff setting and
oversight, monitoring and enforcement of sector regulations.
Geothermal Development Company (GDC): This Company is a Government
Special Purpose Vehicle (SPV) intended to undertake surface exploration of
geothermal fields, undertake exploratory, appraisal and production drilling, develop
and manage proven steam fields and enter into steam sales agreements with
investors in the power sector.
Rural Electrification Authority (REA) is charged with the mandate of implementing
the Rural Electrification Programme and came into operation in July 2007.
14
Kenya Electricity Generating Company (KenGen): Is the main player in electricity
generation, with a current installed capacity of 1,180.7MW (about 72%). The
company’s expansion plan aims to have an installed capacity of 1541.5MW by 2014.
Kenya Power and Lighting Company (KPLC): The single off-taker in the power
market, buying power from all power generators on the basis of negotiated Power
Purchase Agreements for onward transmission, distribution and supply to consumers
(single seller).
Independent Power Producers (IPPs): Private investors in the power sector
involved in competitively procured large scale generation and the development of
renewable energy under the Feed-in -Tariff Policy. Current players comprise
IberAfrica, Tsavo, Or-power, Rabai, Imenti, and Mumias. Collectively, they account
for about 28% of the country’s installed capacity.
Kenya Electricity Transmission Company (KETRACO): A government owned
company established to plan, design, construct, own, operate and maintain new high
voltage (132kV and above) electricity transmission infrastructure that will form the
backbone of the National Transmission Grid and regional inter-connections.
Under the New Constitution, Kenya has been divided into 47 counties, so that there
are now 2 levels of government, each with an own legislature and executive. In the
energy sector, the National Government will be responsible for energy policy
whereas the County Governments will be responsible for planning and development
within their jurisdictions. That means that the counties shall regularly update the
energy status and atlas and shall be encouraged to assess its potential for electricity
generation and to develop strategies to exploit such potential. While the main
licensing will be done by the National Government, some licensing activities will be
overtaken by the counties, e.g. licensing of
-
Small scale generation of electricity using solar and wind
Solar Water Heater and Solar PV Contractors
Solar system installation technicians
Small-scale charcoal/ biomass producers
There will be a transition period of some years to build up the necessary capacities
on level of counties and to clarify the function devolution in operation.
2. Regulatory framework for solar PV & wind
2.1. Feed-in tariff-scheme (FIT)
Feed-in tariffs for power from renewable energies were introduced in March 2008,
reviewed in January 2010 and updated again in December 2012. The RE-FITscheme allows power producers to sell electricity generated from renewable energy
to the off-taker, KPLC, at a pre-determined tariff for a given period of time. The
scheme is technology-specific. While wind energy was included right from the
beginning, solar PV was incorporated after the 1st revision of the scheme, however
just for off-grid systems.
In this context, the feed-in tariffs have been adjusted as follows:
Table 6: Feed-in-Tariffs
Technology
Plant capacity, in MW
2012
(2010 )
FIT, 2012
UScent/ kWh
FIT, 2010
UScent/ kWh
15
< 10 MW
Wind
Solar PV
Biogas
Geothermal
0,5 – 10
(0,5 –
100)
0,5 – 10
(0,5 – 10)

10
MW
10,1 - 50
10,1 – 40
(Solar grid)
0,2 – 10
(0,5 –
100)
< 10 MW

11
11
12
12 (Grid)
20 (OffGrid)
12
20 (firm
power)
10 (Non-firm)
10
MW
10
8 (Firm power)
6 (Non-firm)
35 – 70
(1 - 75)
8,8
8,5
The main principle, which underlies the calculation of the FIT, is that the tariffs reflect
the generation costs plus a reasonable investor return. Furthermore, the tariffs shall
not exceed the generation Long Run Marginal Costs (LRMC), which are 12 UScent/
KWh according to the Least Cost Power Development Plan. Only exception is the
tariff for the solar PV power, which is supposed to be fed in isolated mini-grids at a
tariff of 20 UScent/ kWh. Solar technology is intended to be used to supply mini-grids,
which are actually mainly diesel-run stations and, thus, cause high operation costs to
the operator (in most cases KPLC).
While the tariff for wind is quite attractive, the FIT for solar PV connected to the main
grid is considered to be low. However, the FIT for solar PV systems, which supply
power to mini-grids, seems to be reasonable.
The FIT for Wind and Solar PV apply for 20 years from the date of the first
commissioning. A positive feature of the updated scheme is, that the tariffs are not at
all negotiable anymore; the last versions defined a maximum tariff, which had the
implication that grid operator tried to discuss and to reduce the tariff.
Other key features of the FIT-scheme 2012 are as follows:
 Off-Taker guarantees priority purchase
 The costs of interconnection, including the costs of construction, upgrading of
transmission/ distribution lines, substations, and associated equipment, are to
be borne by the project developer
 Off-taker shall recover from electricity consumers 70% of the FIT (85% for
solar PV connected to off-grid systems)
 For power from projects up to 10 MW, a standardized PPA will be applied; for
larger systems this standardized PPA shall be used for negotiation
 By latest, every three years the FIT scheme shall be reviewed; any changes
which will be made through reviews shall only apply to power systems that
are developed after the revised policy is published.
Following table shows the application process for the Feed-in Tariff:
Table 7: Application process for FIT
Milestone
Project applicant identifies and undertakes a
prefeasibility assessment
Submission of EOI & FIT application from to
the Ministry of Energy
Review of EOI: Check of suitability with
planning and grid connection; approval for 3-
Responsibility
Timeline
Applicant
Appplicant
FIT Committee
3 months
16
year exclusivity period or refusal
Project full feasibility study
Review of feasibility study; acknowledgment of
project viability within FIT regulation
Performing grid connection study
Acknowledgement of grid connection feasibility
Structuring project financing & submission of
draft standardized PPA
Conclusion of non-negotiable PPA
Close project financing
EPC contracting and construction
Connection, commissioning and permit
Applicant
FIT Committee
24 months
3 months
Applicant
FIT Committee
Applicant
Applicant/ Grid
operator
4 months
1 – 3 years
Source: Ministry of Energy, Feed-in Tariff Policy, Application and Implementation Guidelines,
December 2012
A major feature, which should be highlighted, is the grid connection study, which the
developer has to conduct. That study shall take into account the Kenya grid Code
and, for Small Scale Producers, the Guidelines for Grid Connection, issued together
with the standardized PPA in December 2012.
2.2. Power purchase agreement
For reducing the transaction costs associated with negotiating and signing a PPA, a
standardized PPA has been introduced for projects up to 10 MW. This standardized
PPA is technology-neutral.
It incorporates the following features:




There is no bidding for renewable sites and resources – a first come, first
served system applies
The plants are “embedded”, that is not dispatchable by the National Control
Centre
They are connected at distribution voltages
The PPA is offered to projects that demonstrate technical and economic
viability, meet the grid connection requirements and are able to secure all
necessary legal and regulatory approvals and financing.
To be highlighted are the take-or-pay provisions and the step-in rights, which have
been incorporated in the standardized PPA and which make the PPA finally bankable.
2.3. Energy regulations
Beyond the FIT and the standardized PPA there are 2 energy regulations which are
of relevance for the development of the solar PV market:
(1) Solar PV Regulations, 2012
The underlying purpose of the Solar PV Regulations is to improve the quality of
solar PC systems in Kenya, especially by improving and ensuring the capabilities
of the private sector actors, e.g. technicians, manufacturers, vendors.
The key features are as follows:

Persons who want to design or install a solar PV system have to licensed
17






(2)
To be licenced as a technician, a person shall be required to have minimum
qualifications and experiences
There are 3 classes for different system sizes (T1, T2, T3): T 1 refers to systems
up to 100 W, T2 to medium sized systems and T3 to advanced, grid connected
ones and hybrid ones. For instance, for T2 it is necessary to have a Certificate in
Electrical or Electronic and Intermediate Solar training.
Solar PV manufacturers (systems, components), importers, vendors and
contractors have also to be licenced by the Commission
For getting the licence a written an oral exam has to be passed. The licence is
finally given by the Energy Regulatory Commission (ERC)
The commission or its agent may carry out inspection
Manufacturers, vendors, technicians and contractors have to provide a warranty
to the customer for the components in the solar PV system and the PV
installation (10 yrs for controllers, regulators; 10 yrs for inverter, 20 yrs for panels,
1 yr for battery etc.)
Energy management regulations, 2012
Through these regulations the energy efficiency shall be enhanced in the industrial,
commercial and institutional facilities. The focus lies on energy conservation, but
renewable energy systems are usually considered as one option of energy efficiency
enhancement. Apart from that, the regulations generally contribute to the awareness
raising towards energy issues, thus, will also contribute to increase the interest in
solar PV and wind.
Key features of the regulations are as follows:






For all facilities, energy audits are mandatory, once every three years (according
to the guidelines for the energy audit report)
The audits have to be conducted by licenced energy auditors
To be licensed as an energy auditor an applicant must have a minimum of
academic and professional qualifications (as defined in the regulations)
Within 6 months after the audit, an energy investment plan for the next 3 years
has to be submitted by the facility to the Energy Regulatory Commission (ERC)
The facility has to realize at least 50% of the identified and recommended
energy conservation measures; an annual implementation report has to be
provided (acc. To guidelines for implementation report)
Commission or its agent may undertake an inspection audit
2.4. On-going review of the regulatory framework
There are actually 2 projects of the Energy Regulatory Commission (ERC) on the
further development of the regulatory framework:
(1) In the context of a project with the EU (EUEI PDF), it is intended to develop
 Feasibility study templates
 Grid connection study guidelines
 Net-metering/ electricity banking regulations
Of much relevance for the further development of the commercial market for
Solar PV is, if course, the net metering, which has been introduced in the
Energy Bill 2012 (par. 157):
18
“A consumer who owns a renewable electrical energy generator of a capacity
not exceeding 1 MW may apply to enter into a net-metering system
agreement…with a distribution licensee or retailer…”
The net-metering allows to measure the energy flows in both directions, so that
the power which the renewable energy generator supplies to the grid is deducted
from the energy, which the distributor supplies to the generator; the owner of the
renewable energy generation plant just pays for the balance (“net”).
Solar PV installations do not make so much sense just for feeding the power in
the (main) grid, as the feed-in tariffs for main-grid connected solar PV is just 12
UScent; but in consideration of the current supply tariff from the grid, that
amounts to 20-25 UScent/ kWh, it is economically viable to offset the purchase
of electricity through power from Solar PV, which has a levelized cost of around
18-20 UScent/ kWh.
Regulations for the net-metering are actually developed on basis of 3 case
studies: While two Solar PV systems are already installed and feed in the grid
(without balancing against the supply), the systems in the SOS children Village
in Mombasa and on the roof of the UNEP Headquarter in Nairobi, one Solar PV
system is going to be installed at the Strathmore University.
(2) The International Finance Corporation (IFC) supports ERC to develop
regulations for the power wheeling: Under the Energy Act, electricity
transmission (wheeling) between a privately owned generator and an earmarked
customer is permitted. An appropriate wheeling tariff and wheeling procedures
have not been agreed, however. A Cost of Service Study will provide information
relevant to establish a wheeling tariff and suggest a methodology to define that
tariff. Focus will be on the 33-132 kV voltage levels.
3. Status solar PV & wind energy sector
Kenya has had a relatively stable off-grid PV market since the mid-1990’s, with
hands-off Government policies and continued duty and tax exemptions for PV
products. The market is extremely competitive but continues to develop a number of
interesting niches for specialized products.
Cumulative installed capacity is likely to be over 20 MW, spread between solar home
systems, NGO/professional systems and Government-procured systems. Off-grid
solar home system sales volumes have not dramatically increased since 2009
because of aggressive Government grid-based rural electrification programs.
However, demand for pumping, NGO, professional, and peri-urban systems is
increasing.
The Naivasha-based Ubbink PV module plant sold about 2 MW of locally-assembled
modules into the region over its first (2011/12). This venture, in partnership with the
local battery manufacturer (ABM) has been able to successfully reach neighbouring
markets and Kenyan consumers eager to buy local product.
Three segments of the market are poised to grow rapidly:


5
Mini-grid markets, based on >40 Government-procured systems in northern
arid regions5 and donor projects proposed by several countries.
Small-scale (<1MW) grid-connect projects in the agriculture, NGO, education
and commercial sector
See Ministry of Energy Scaling Renewable Energy Project document.
19

Commercial scale PV projects are likely to become more attractive as
electricity costs rise, South Africa’s emerging experience is better understood
and demand for daytime electricity increases.
More than 500 MW of on-grid wind projects are in the pipeline, primarily in windy
parts of the Rift Valley and the coast. The approved pipeline of project includes at
least 5 projects in advanced stages, though none has broken ground and all have
been slower than expected to come to financial close. The off-grid wind market,
though not as active as PV, is significant. More than 10 companies supply wind
generators for use in micro-grids and standalone projects, and local manufacture of
components is carried out by at least
Major PV market segments
The solar sector can be divided into 4 major segments; the two off-grid markets are
mature and currently active while the latter 2 are poised to develop in the near future.
Table 3 and Figure [] provide a basic overview of the sector.
Table 8: Main market segments of the solar PV market in Kenya
Segment
Brief description
Current status
Comments
Off-grid Pico &
SHS
Sales of relatively
standardized products
(usually below 100Wp),
“over-the-counter”,
unregulated.
Off-grid
Professional &
Project Market
Grid connect
(small & medium
scale)
Utility-scale power
generation (>100
kW)
Systems designed according
specific needs of off-grid
facilities or off-grid
electrification programs. It
can include SHS
programmes or larger
systems (solar PV and
hybrid systems).
Systems designed for the
specific needs of gridconnected facilities. It can
include power generation for
direct consumption
(embedded generation) or
grid-interactive systems (e.g.
under net-metering or energy
banking arrangements).
Power generation sold to
main utility or other
decentralized utilities using
Feed In Tariffs.
Largest portion of
market. Thousands of
outlets. Solar is a
ubiquitous product.
Competitive.
Dominated by Chinese
products. Estimated to
be over 2 MWp p.a.
Active market. Driven
by donors, NGOs or
government
procurement. Small
applications in
commercial and
industrial sector (e.g.
pumping tourism,
telecoms, etc.)
At least 10 grid connect
projects (>2 MW)
should have been
completed by end of
2014.
1 MWp of
installations in 2012.
Government
procurement and NGO
projects represent
largest portion
6
“Energy banking ”
regulations are being
actively negotiated by
the private sector and
Government bodies
3 projects of 3 MW in
RTAP pipeline
Several large scale
projects announced.
10 MW in Government
small project pipeline.
Government mini-grids
projects.
Regional aspects of
new constitution may
open up new
opportunities for
renewable generation.
3.1. Status of solar PV
In general, the “over-the-counter” nature of Kenya’s off-grid PV market has remained
the same as it was since the 1990’s except for a few important changes. First,
consumers have more choices and lower prices.
Secondly, technology
6
Kenya’s version of net metering.
20
improvements have made lower cost inverters, BOS, modules and pico-systems
available on the market. Thirdly, there have been some Government efforts to
regulate and licence the market7. Finally, there are more players operating in more
niches, including pumping, designed systems, portable systems and micro-grids, and
this is resulting in a trend towards better systems.
Since 2009, Kenya’s solar market has begun to move “on-grid”. Most PV players are
now aware of the opportunities offered in on-grid niches, and some advertise
products for on-grid applications. Policy changes to make solar systems more easily
connected to the grid are underway8.
Little formal data about sales of products exists, though current sales are well over 2
MW per annum. As shown in Figure [], there are several channels of supply:
 Local manufacturer of modules (Ubbink) & batteries (2 local manufacturers),
 “Formal” supply chains (importers, wholesalers, dealers with established)
suppliers, e.g. Davis & Shirtliff who are interested in long-term relationship
also with European/ German companies
 “Opportunistic” supply chains (importers, wholesalers, dealers who regularly
change suppliers based on price & available product),
About 10 companies are major importers of solar PV, inverters or batteries, doing
more than $1M turnover per year. Several dozen companies are integrators or
players that specialize in various segments of the market (pumping, NGO sales,
pico-solar, mini-grids, Government projects, battery back-ups, grid-connect). There
are, hundreds of retail shops that supply PV directly to consumers throughout the
country.
A few companies with established relationships with German companies include the
following:




Chloride (Phocos charge regulators)
Davis Shirtliff (Lorenz solar pumps)
Solar Works (Energiebau)
Harmonics (Donauer)
As well, there are hundreds of solar technicians, many of which do not have formal
skills and operate with loose connections to solar distributors or retailers. However,
the training infrastructure for solar technicians and engineers develops along
with the gazetted solar PV regulations 2012. These regulations require that only
licensed technicians are allowed to design and install solar PV systems; and to be
licensed, technicians have to undertake a solar training course.
Gazetted ERC regulations require PV sellers and installers to have licenses. Enforcement of
these new regulations is difficult for Government bodies, especially since so many retailers
have solar as part of their product line.
7
8
The question is whether they will be in 1 year or 5 years.
21
Figure 4: Kenya PV market set-up
The KenyaPV Market Set-Up
Local
Manufacture
Professional
Market
Modules, Ba ery
NGO, Tourism, Telecom
Exports
Somalia
South
Sudan
Uganda
Tanzania
Rwanda
DRC
Seafreight
Tendered
Projects
Retail Overthe-counter
Government, NGO
SHS, Components
PicoSolar
Imports
Locally
Installed
Installers
In consideration of these regulations, a solar PV training curriculum has been drafted
to standardize the training programmes. Local and international institutions including
academia and regulatory institutions were involved. There are 3 classes (Class T1,
T2, T3), which entitles the holders to carry out solar PV system installation of
different sizes, e.g. T1 entitles to install systems up to 100 Wp.
Training courses are for instance offered by the Solar Energy Research Centre of the
Strathmore University, the leading private university in Kenya. It nowadays also hosts
the German Solar Academy (GSA), which was launched in context of the
construction of the UNEP 500kW project. At that time, GIZ supported the German
suppliers Energiebau Solarstromsysteme, Schott Solar and SMA to provide the
training. A total of 80 technicians have been trained through the three German Solar
Academies held in 2011 and 2012. The training is now institutionalized in Strathmore
University, which intends to build up a Competence Centre for Renewable Energy
and Energy Efficiency, with support of GIZ.
3.1.1 Off-grid pico & SHS
This well-established >1MW market operates through a number of wholesalers that
import modules and re-sell to hundreds of retailers around the country.
The target group of this market segment are mainly people in remote areas, which
are difficult to be reached. Thus, an important part of the supply chain are the socalled “energy entrepreneurs” who are trained and supported though several
donor-funded proprammes.
22
A prominent example is the programme “Developing energy enterprises in East
Africa” (2008 -2012), which was funded by the EU and the Danish Government. In
framework of this programme, over
Box 1: Energy entrepreneur Durama
1000 micro and small energy
Mobile Charging
enterprises (MSEE) have been
supported
to
develop
their
Only 30% of rural Africans are phone users,
business.
328
of
them
deliver
Solar
partly because of the problem to charge the
PV products and services, such as
phones. Very often they need to travel long
solar lighting and solar mobile
distances.
phone charging. Many of them are
The entrepreneur Athman Ndoro had
in Kenya.
already a solar mobile charging station at his
The small entrepreneurs got
home in Mlola village/ Kenya, relying on a
trainings on technologies, bookcar battery as opposed to a solar inverter.
keeping, quality assurance and
This was quite inefficient. Thanks to the
marketing. In addition, they were
DEEP programme he moved his mobile
coached by a mentor on the
charging station to a more strategic place
development of their business plan.
near to a trading Centre. Through his wife
As a crucial component of the
he got a loan (200 €) from the Kenya
programme, a Loan Guarantee
Women’s Finance Trust, which he used to
Fund was established, which
purchase a 40 W panel and solar battery of
made it possible for most of the
50 Ah. This allowed him to improve sales
entrepreneurs, who do not have
from 20 €/ month to 72€/ month. It took him
suitable surety such as a land title
just 10 month to pay back the credit.
and therefore cannot get credits, to
Source: GVEP International, developing Energy
get access to finance.
Enterprises in East Africa, booklet 2012
Despite introduction of Government regulations that require licenses for sellers and
installers, there has been little change in the nature of the over-the-counter market
since 2009.
Box 2: Lighting Africa
Lighting Africa is a joint IFC and Worldbank programme that works towards
improving access to better lighting in areas not yet connected to the electricity
grid.
Modern off-grid lighting products or systems shall replace the inefficient and
costly fuel-based lighting sources such as kerosene lamps. The products
comprise solar panels (1-5 W), rechargeable battery and a modern lantern/ lamp,
usually with a LED bulb. Very often, additional features such as a mobile phone
charging kit are integrated in the pico system.
The products, which are promoted through the programme, have to meet the
Global Lighting Minimum Quality Standards. Respective test methods and
standards have been developed, which are used actually by 4 labs worldwide,
including the Fraunhofer ISE in Freiburg.
By December 2012, 49 off-grid lighting products meet the performance targets of
Lighting Africa that means the Global Lighting minimum standard. Up to now,
almost 7 Mio. people use clean lighting access in Africa. The programme also
facilitates the access to finance: 7 Micro Finance Institutes (MFI) provide microloans for consumers to purchase quality-assured off-grid lighting products.
Source: http://www.lightingafrica.org/
23
It is mostly an over-the-counter market that operates through the major importers,
distributors, retail shops and installers. Typically, systems are purchased directly on
a do-it-yourself basis by consumers or by artisanal installers who design systems
based on consumer needs and budgets. The SHS supply chain is extremely
efficient and competitive. As it currently operates, it is of little interest to European
suppliers because it is driven by low price and uneven quality.
The Lighting Africa project has stimulated the lower end of the SHS market, and
drawn more investment --- and players --- into the market.
New marketing and business model approaches have revitalized the <100 Wp
market since 2010, especially with the stimulation from (donor-aided) social
entrepreneur pico-solar entrants. Financing, mobile money and higher technology
advancements may open up niche markets to international players by a) clustering
sales of equipment, b) enabling long-term finance of systems among groups of
customers and c) enabling direct contact between whole-sale agencies and
consumers (as happens with cellular phone companies). However, the existing overthe-counter market is in little danger of changing.
Examples of new social entrepreneur approaches which have had impact include:
Table 9: Social entrepreneur approaches to solar PV sales
Social entrepreneur
company
Business model
Financier
Lighting Africa-supported and
recognized pico-products
Barefoot,
d-Light,
SolarAid/SunnyMoney
BBox
Self-contained solar lighting kits to
remote projects and dealers
throughout region.
SolarKiosk
Berlin-based company introducing
solar-powered container-type kiosk
which sells products and services in
rural areas (e.g. charging mobile
phones, batteries, lamps; services
such as cooling, internet and
communication). Products such as
pico-systems and SHS are sold as
well.
SunKing,
IFC, various donors
Various
In 12/2012 a subsidiary was
established in Nairobi. Al least 5
Kiosks are deployed in Kenya.
MobiSol
Markets, monitors and finances
SHS through use of mobile money
platforms
(Tanzania,
Kenya,
Rwanda)
AECF
M-Kopa Solar
Franchise based on M-Pesa Model
finances solar equipment in Kenya
rural area
AECF
24
Box 3: Business model MoBiSol

19 employees, of which 4 are in the EA region, e.g. Arusha.

Product: Smart system (20 Wp – 200 Wp), linked up to mobile net (in Kenya
Safaricom and Airtel; in Tanzania Vodacom and Airtel)

Business model:
 Customer pays via M-PESA a monthly fee, the system will be opened
automatically for power supply to the customer;
 the systems are financed through micro-credits and can be paid back over
a period of 3 years (12 USD/ month for 20 Wp; 40 USD for largest system);
 warranty is given for 3 years (for this period service for free)

Partners: The NGO SCODE (Kenya) and Kakute (Tanzania)

In a test phase (2010-2012) around 300 units were installed in Nakuru region
(Kenya) and in Aruha (Tanzania); the target for 2013 is to install 10.000
systems in Tanzania, Kenya and Ghana)
3.1.2 Off-grid professional
This developing sector includes systems designed according to specific needs of offgrid facilities or off-grid electrification programs. It includes donor-led SHS
programmes or larger systems (solar PV and hybrid systems) as well as commercial
markets that require high quality equipment (telecom, tourism, pumping, high-end
residential). Exports of equipment to other east African countries (South Sudan,
Somalia) are also important in this market.
Important segments of this market include the following:







Institutional systems
Pumping
Mini/micro grids
Specialized
Telecom
Export
AID/NGO bids
Increased demand by the aid and rural development sector, as well as from green
off-grid consumers, has stimulated this market. Mainly NGOs and Government (e.g.
through electrification of public facilities) have driven the professional off-grid market.
The private, commercial sector such as tourism facilities have a significant potential,
but up to now the tourism for instance has not yet developed projects over 30 kWp.
Institutional sub-segment
The first 5 years (2008/09 – 2012/13) of the Vision 2030’s target was to connect all
major trading centres, secondary schools, community water works, health centres
and 1 Million households. By 2012, more than 22.000 public facilities have been
electrified, either through extension of the grid or through installation of diesel
25
stations in the off-grid-areas as well as installation of Solar PVs and other renewable
energy projects. In this context, over 350 public facilities have installed solar power
for uses such as refrigeration and lighting.
An interesting aspect of this off-grid/ professional market segment is that it has many
new players. As opposed to traditional over-the-counter suppliers, these new
entrants are often nimble, able to prepare bids and proposals, technically competent,
and able to seek support from the finance and aid sector 9 . It is, for example,
common for solar companies to team up with NGOs and CBOs to develop project
proposals for specific opportunities “on offer” from donors such as the EU, UN
agencies (UNDP, UNHCR, UNEP), AECF, GVEP, EEP, international grant agencies,
etc.
As well, there are numerous alliances of importing companies and niche specialist
providers that team up to win contracts. For examples, importers like Davis Shirtliff,
CAT and Chloride Solar both tend not to go after individual solar projects; instead
they work closely with dealers/technicians to win projects, picking the right
partnership for the job.
The professional sector is likely to grow steadily, with new opportunities opening up
in tourism, aid, telecom and Government procurement.
3.1.3 Grid-connect (Small scale)
Development of small and medium sized grid-connect market is likely to be a key
growth sector for PV in East Africa as a whole and a particularly interesting one for
high-quality suppliers. There are three reasons for this:

First, the rapid expansion of the grid is a reality in Kenya 10. On the order of
80% of the population is within 10km of a grid power line in Kenya. Many
consumers would like to have a grid connection and add/keep their solar
PV system.

Secondly, grid-connected early movers in the household and commercial
segments of the economy want to go green and to invest in solar for its
predictable long term costs.

Thirdly, on-grid Kenyans already invest in battery, generator and solar backup solutions. They are used to poor service from the utility and see solar as
a potential solution to avoid the on-going frequent power cuts (that are
likely to continue in the short term).
In the absence of a clear policy framework, this market is already developing.
Recent projects (see table) have been carried out by aggressive green first movers.
The success of these projects, and the resounding support they receive from the
private sector and consumers, has forced Government to positively address a “grey
area” of policy11.
Numerous aid-based sources of support are available for start-up and small green
companies. See Solar Player Data base and Table 3.
9
10
KPLC has several hundreds of thousands of households between 2008 and 12.
11
Small scale renewables are not officially encouraged by feed in tariffs or net metering
policies yet. See ECA report.
26
Table 10: Solar PV grid connect pipeline
Project
UNEP Nairobi
SOS Children Village
Mombasa
Uhuru Flowers
Strathmore
Chloride
Size
550kW
60kW
Year Installed
2011
2011
Company
Energiebau/SolarWorks
Asantys/AfricanSolarDesigns
73 kW
500 kW
48kW
2012
2013
2013
Azimuth/SolarCentury
Energiebau/SolarWorks
Yet, the market is not off-taking: The net-metering has been introduced by law by the
end of 2012, but the implementation guidelines/ regulations are still under
preparation. At least a dozen projects are currently in development. Especially, once
the net-metering regulations will be in place, these are likely to grow into a sector that
is larger than the off-grid sector in the mid-term. Opportunities will largely be over
90% in the private sector, in the 2kW to 500kW range and without need for licenses
or formal Government approval.
3.1.4 Grid-connect (Utility-scale)
The power generation market includes systems installed as projects with power
being sold to the main utility or other decentralized utilities under a Feed-in-Tariff
regime. Already, a number of “aspirational” projects are in the Government pipeline,
but none has received a PPA. Thus far, Government policy and practice has
prioritized large (>100 MW size) geothermal, wind and coal projects over solar PV.
Large scale projects are occasionally announced by market players (ex Jinko Solar
Garissa12). Rumours are also around an upcoming project of UK-based Winch (40
MW). However, whether such projects occur has much to do with investor appetite,
improved FIT’s, available finance, overall views of the Kenya energy sector ability to
pay and ability of the power sector to absorb large-scale generation13.
In the mid-to-long term, large scale solar projects will be implemented in Kenya.
Opportunities for such projects will be limited in number and extremely competitive.
Investors will have to have strong local connections and a long-term view of these
opportunities.
Mini-grids
Besides the electrification of public facilities, the installation of isolated mini-grids is
part of the rural electrification programme. In the Rural Electrification Master Plan
(REMPP, 2009) 33 sites were identified for the installation of off-grid power stations.
By end of 2012, 12 isolated mini-grids were installed, all on basis of diesel
generators. They are operated by the national grid operator, KPLC.
7 of these off-grid stations already include RE systems, however the share of RE at
the total installed capacity is usually less than 10%.
http://www.the-star.co.ke/news/article-281/chinese-firms-build-solar-power-plantgarissa
12
If the existing wind and geothermal projects come on-line as per schedule, the ability of the
grid to absorb and pay for this power in the near term is questionable.
13
27
Table 11: Existing off-grid stations
Station
Wajir
Mandera
Marsabit
Diesel
Installed
Capacity
(kW)
1746
1600
560
Lodwar
Hola
Merti
Habaswein
Turkana
Tana River
Isiolo
Wajir
1440
800
128
360
Elwak
Baragoi
Mfangano
Moyale
Mandera
Samburu
Hombay
Marsabit
Mpeketoni
Lamu
360
128
584
Connected to
Ethiopian
National Grid,
2009
Connection
to Ethiopian
National Grid,
planned 2013
7706
Wajir
Mandera
Marsabit
County
TOTAL
RE
Capacity
No. of
Customers
Length of
MV lines
(km)
3360
3270
2194
Length
of HT
lines
(km)
186
86
123
0
300 (PV)
500
(Wind)
60 (PV)
60 (PV)
10 (PV)
30 (PV)
50 (Wind)
50 (PV)
0
0
1610
1300
287
779
35
175
6,85
105
45
42
18
150
535
199
101
25
7
42
52
4
7,3
800
25
65
510 (PV)
550
(Wind)
Source: Ministry of Energy, Scaling-Up Renewable Energy Program (SREP), Project Document for MiniGrids’ development in Kenya, Draft, April 2013
The main distribution voltage levels are 11 kV, in Wajir (Griftu), Hola, Habaswein and
Mfangano there are also 33 KV lines. With regard to the load profile, there are 2 main
peak periods usually, between 10.30 and 12.30 am and between 7.30 and 9.30 pm.
3.2. Status of wind energy sector
Potential of wind in Kenya
Kenya is one of the countries with the highest potential for wind power generation in
Africa, with the highest potential around Lake Turkana and a significant potential in
the coastal areas.
Kenya has on the order of 10-20 good sites with wind speeds of >7m/s. These sites
could have a demonstrated potential of over 1 GW of grid-connected electricity from
medium-large wind turbines. The Government is in the process of preparing a new
wind atlas14 --- however, developers generally have to measure and confirm data for
their own projects.
Large-scale projects
The large-scale wind sector has been increasingly active in the recent years. Despite
a great beginning with Ngong hills wind park 5.1 MW commissioned in 2009, the
14
A previous Wind Atlas was prepared in 2003.
28
large-scale wind sector has been unsuccessful since then trying to push for more
installed capacity. The LCPDP projects a total of 2,036 MW from wind by 2031.
As of 2011, 20 projects with a total capacity of 1008 MW had been approved for
development.
Table 12: Approved wind power projects
Name of Firm
Capacity Site
(MW)
Aeolus
Osiwo
60
60
Kinangop
Ngong
Aperture
30
Limuru
Wind Energy Ltd.
Cordisons Int. Ltd.
100
150
Malindi
Kisumu, Lamu
Tana river power
2x50
Energy Investment
2x6
Triotec int. Ltd.
Prunus
10
Isiolo &
Nyambene
Suguroi,
Mambrui
Ngong Hills
Ngong Hills
Pisu & Co
Kenergy
Ltd
KTDA
Renewables
To do feasibility study
To do feasibility study
To complete feasibility study
To finalize arrangements with KFS
To acquire land and do feasibility
study
To do detailed feasibility study
To do detailed feasibility study
20
40
Sergoit
To do feasibility study
20
750KW
Rleny Hills
Kiasemes
To do feasibility study
To do feasibility study
50
Oloitoktok
To do feasibility study
50
Corner Baridi,
Ngong
Mpeketoni
Garissa
Kinango,
Kwale
Nyambene
Hills
Tower power ltd.
Biashara
Energy
Solutions
Fahrenheit
Energy
Solutions
Facelift Energy
Ambalian
Company
Limited
Quant Energy Kenya
Ltd
GEM-CEM
Construction Limited
Electrawinds
PPA signed
Waiting for concessioning of land
from Kenya Forest services (KFS)
Finalizing agreement with
partners, ENBW
Finalizing detailed feasibility study
Import of wind masts for data
logging
To do feasibility
Between
Meru/Isiolo
Kinangop
Kapchebet
Tea Factory
Olchoro
Onyore
Hindi
Ngong Hills
Ngong Hills
Olsuswa farm
Laikipia
Corner Baridi
Isiolo &
Malindi
Kanget Meru
Triotec Int.
Blue Sea
Windgen power
Sustainable Energy
Sustainable Energy
Olsuswa Energy
Kenelec Supplies
Ol-Danyat Energy
Tata power
Status
55
100
100
10
100
90
100
100
30
To do detailed feasibility study
To do detailed feasibility study
To do detailed feasibility study
To do feasibility study
To do feasibility study
To do feasibility study
To do feasibility study
To do feasibility study
To do feasibility study
Source: List of ERC/ MoE (April 2013)
29
Table 13 below summarizes the 5 major projects that the most advance in
development. In total, these projects represent over 550 MW. According to current
plans (and predicted completion dates) these projects would supply well over 20% of
the capacity of the Kenya grid upon completion.
Table 13: Major planned wind projects in Kenya
Project /
Capacity
Players
Area
[MW]
location
Turkana Wind
Park
300
Kipeto Energy
Wind Park /
Kajiado area
100
Kinangop
Wind Park
60.8
Ngong Wind
Park
Expansion /
Ngong hills
13
Baharini
Electra Wind
Farm • Lamu
coast
90
Aldwich International – Original
developer
AfDB – Lender
Lake Turkana Wind Project (LTWP)
Vestas – Turbine supplier
Isolux Corsan S.A. – Transmission
line contractor
CFD – 100% ownership
GE - Founder of the project
Local partner – CraftSkills
Aeolus Kenya
General Electric – Supplier
Iberdrola - EPC contractor
OPEC – American bank lender
Iberdrola - EPC Contractor
Gamesa - Supplier
Prunos and GE - Investors/Owners
Electra Winds Kenya Limited
IFC investment
Status
The project is about to
achieve financial close
around June 2013, but is
temporarily on hold due
to World Bank concerns
over grid absorption
capacity and cost
recovery.
Close to financial
closure, afterwards 18
months of
commissioning
In PPA negotiations
In PPA negotiations
Early stage
Stand-alone and Isolated Mini-Grids
Stand-alone wind projects small-scale wind projects have been a small niche of the
off-grid solar market for several decades. There are on the order of a five hundred
stand-alone wind systems in the country ranging in size from 500W to 50 kW.
According to KEREA an average of 80-100 small wind turbines (400W) have been
installed to date, often as part of a Photovoltaic (PV)-Wind hybrid system with battery
storage. These have been installed by telecom players, NGOs, commercial and
household clients in windy parts of the country.
CraftSkills, WinAfrique and WindGen together with Davis and Shirtliff and Chloride
Exide are the most active companies in stand-alone wind systems. CraftSkills and
WindGen fabricate local wind turbines in a cost-effective way and have shown
interest in technology transfer from developed markets. Other players including
access, RIVIK and others import components and technical support (see Database
for list of wind players). Wind pumps are more common than wind turbines, 2 local
30
companies manufacture and install wind pumps. Installations are in the range of 300350.
It is notable that all of the players in small-scale wind installation have also moved
into PV/inverter installations. This is because, first, small-scale wind system
installations do not have a large enough market to sustain their business and,
secondly, the skills required for off-grid wind installation are similar to those required
for off-grid PV.
According from GSMA report, 1.9% of all telecom sites are PV-wind mini-grids.
However, there has been a relatively slow market uptake of the technology because
of investment costs and other reasons (GSMA report). 100 of these sites were
installed by WinAfrique and Safaricom between 2008 and 2010; however, Safaricom
reduced investments in the project due to the high costs and lowered appetite for
investment.
Obstacles and constraints
Despite an overall policy environment for wind that is positive, there are still a
number of issues that prevent much wider use of the ample wind resources in the
country. The table below presents obstacles to wider development of wind projects:
Table 14: Major barriers to wind project development in Kenya
BARRIERS TO LARGE SCALE WIND
BARRIERS TO STAND ALONE WIND
DEVELOPMENT
SYSTEMS / MINI-GRIDS
Government’s public preference in
geothermal
Robustness of the national grid
Integration factor into the grid; 25% maximum
Lack of reliable updated wind resource map
Large distances from transmission lines
where wind blows the most: areas in the
North that have the highest potential for wind
energy generation are too far from the
nearest transmission lines
Up-front investment cost of systems
Lack of business models and incentives for
private investment vis-à-vis Government
investment/procurement for communities
Poor acceptance in rural areas;
Maintenance problems in isolated areas lack
of local capabilities to tackle this
Lack of reliable and updated wind resource
map
4. Market potential and planned projects
4.1. Overall sector outlook
As can be seen in Figure [], it is likely that solar markets in Kenya will develop rapidly
in the medium term and that Kenya will become a market that installs tens of
megawatts per year. The small-scale grid connects and off-grid professional
markets are the key markets for German companies to watch because they will
demand high quality and long-term commitment from companies and because
German companies have a competitive advantage in this sector.
The solar sector likely to grow because of the following factors:

Electricity prices are rising due to higher costs (thermal generation, delays in
large project development). The Kenya electric grid will continue, in the short
31

and medium term, to be unstable with frequent black-outs. See Figure []
below.
Numerous donor programs are engaging with the Kenya Government to
develop credible off-grid renewable energy programs (particularly DFID,
BMZ/GIZ, USAID, UNIDO, etc)
Figure 5: Modelling Kenya’s PV potential
70
MW installed per year
60
50
Grid Connect Commercial
40
Grid Connect Small Scale
30
Off-Grid Professional Market
20
SHS & Pico
10
0
2008
2012
2016
2020
In addition to the two overriding factors mentioned
above, there are other
considerations that will
drive
solar
markets.
Consumer demand for
green and secure sources
of power will continue to
rise,
as
will
general
knowledge about solar.
Regional projects in solar
Figure 6: Kenya’s PV Costs vs Electricity Costs
Source: GIZ, Solar PV Achieves Grid Parity in Kenya
(2010)
(including the South African experiences) will stimulate increased interest. Finally,
the reduced prices of solar PV, vis-à-vis KPLC power prices, will drive the market as
shown in Figure 3 above.
From the above analysis, the following trends can be anticipated:


Off-Grid Pico and Solar Home System markets will grow slowly, but will
never rise above 5 MW per year without a serious Government
subsidy/support intervention. In the medium term, these markets will peak
and slowly reduce as more and more consumers are brought onto the KPLC
grid.
Off-Grid Professional Markets will grow steadily over the next ten years (i.e.
until 2020) as investments in larger telecom, tourism and NGO markets
increase due to the need to provide electricity infrastructure via stand-alone
32


and mini-grid systems. The markets will peak at 8-10 MW before reducing as
opportunities diminish and the grid expands.
Grid Connect (small-scale) will grow rapidly with increased consumer
demand, better policy frameworks and grid parity of solar solutions. Smallscale grid-connect will, by 2020, constitute a larger demand than off-grid solar.
Projections of actual market size are difficult to estimate.
Grid Connect (utility-scale) projects will become part of the general
increase in of power capacity in Kenya over the next 10 years. Projects will
be “lumpy” in that there will tend to be several large projects over a 5 year
period with only a few opportunities for equipment suppliers.
Opportunities and business potential in the wind sector are both in the mini-grid
segment as well as the segment of main grid-connected wind parks: Mini-grids with
integrated wind power systems are promoted by the Government along the overall
plans to promote the electrification of rural areas through isolated mini-grids.
Ambitious targets of the Government to expand the wind power capacities from the
current 5,1 MW to 3 GW by 2030 also implies opportunities for larger grid-connected
wind parks. A lot of projects have already been approved. And many wind
developers are ready to become more active. However, in the next 3-5 years the
absorption capacity of the grid will limit very much the connection of new wind parks.
Key Obstacles / constraints
As shown in Figure 2, the Kenya PV market is likely to grow relatively fast in the
coming years. The rate of this growth is dependent on a number of factors including
policy environment, the investment climate, available finance/incentives and the
consumer appetite. Currently, the market is held back by a number of factors.
In general, the solar sector in Kenya is extremely competitive and disaggregated.
There is little sector-wide collaboration to achieve common objectives. Many
companies will have trouble surviving the next stages of market growth as they may
not be able to build up the capacities which are necessary to meet the
upcoming demand (i.e. gradual shift away from small-scale off-grid to on grid)
and they do not have the resources to survive difficult periods. Solar companies (and
consumers) are slow in Kenya to grasp the rapid changes in global solar technology
(i.e. off-grid to on-grid). It will take them some time to develop the large array of skills
needed for markets that differ from the current off-the-shelf, pico and NGO supply
models.
A facilitative policy environment is not yet fully developed for on-grid or offgrid solar. Unlike neighbouring countries, the Government model for off-grid
rural electrification is to directly tender projects on a procurement basis rather than
to encourage market approaches15. The uniform tariff policy actually does not allow
to set the tariffs in mini-grids on basis of the costs, which hinders of course the
involvement of the private sector in the mini-grid operation business. Generally, the
current approach to development of the power sector is not conducive to the smallscale decentralized projects that are easiest for Kenya’s dynamic private sector to
carry out --- the energy sector, however, is evolving and there is hope that energy
banking (net metering) or other special incentives for decentralized approaches will
develop.
I.e. subsidies for solar home systems, franchised concessions, officially supporting private
players to develop mini-grids and providing them with the same subsidy the utility receives.
15
33
Solar technologies in Kenya have not been marketed (or designed) to fit into
some of the most viable market niches. For example, many off-grid sites that run
generators 24/7 would benefit from directly connected PV (without batteries) to
reduce fuel expenditures. In addition, solar PV has not been marketed to fit into the
10’s of thousands of back-up battery/inverter systems that are prevalent in urban
areas.
Finally, Kenyans in general have a view that solar is an inferior technology in
comparison to the grid and generators. This has a lot to do with the prevailing offthe-shelf nature of the business, the small size of players and the relatively limited
capacity of solar companies. Until solar companies can demonstrate that they
supply green solutions that are durable and well-engineered, larger projects
(especially off-grid) will not move forward.
4.2. Planned projects
Table 15 below provides an outline of projects that are currently commercially viable
(due to a long history of project activity) or planned by Government or other client
(This is not a complete list as all private companies were not willing to share their
pipelines).
As can be seen, the commercial off-grid market for 2013/14 amounts to about
3MW and planned on-grid projects in 2013/14 add another 4 MW or so. Planned
and “under construction” Government mini-grid projects add 9,4 MW in Solar PV
to this total. Thus the total for PV installations in 2013/14 could potentially be 16,4
MW. With regard to wind power, 3,1 MW are planned in context of isolated minigrids.
This section mainly discusses planned Government projects on solar PV and
wind power. See other parts of the report for commercial projects.
Table 15: Solar PV “planned” projects
Type
Stand Alone / SHS
Stand Alone / SHS
School & Clinic
Pumping
Mini-grids
Mini-Grids
Mini-Grids
Grid Connect
Realistic
Capacity
MW/year
1.5-2.5
MW
???
1-2MW
1MW
1.8MW
Project developer
Client/Comments
Commercial
2MW
5,6 MW
300 kW
500kW
Government/REA
Government/REA
Power Technics
Azimuth Power&
Solarcentury
Business as usual market for pico &
SHS
No plans
REA
NGO/Private Clients
Addition to Existing Mini-Grids
(2013/14)
Mini-Grids Under Construction
Proposed Mini-Grids
Power Technics
Strathmore university
48kW
3 MW
Government
Government
Commercial
Government/REA
Chloride Solar
KAM RTAP
Sameer Africa
exploring the possibility of
introducing a solar energy and a
coal fired steam generation facility
Undisclosed client
Part of existing RTAP Pipeline
34
4.2.1 Government projects: Institutional and SHS segment
The first 5 years (2008/09 – 2012/13) of the Vision 2030’s target was to connect
around 25.000 public facilities. 12% (3000) have still to be electrified in 2013/2014,
concretely 2450 trading centres and 640 health centres.
Table 16: Planned rural electrification of public institutions
Facility
No. of facilities
To be electrified
electrified
(2013/2014)
Trading centres
10.666
2.452
Public Secondary
8.108
0
Schools
Health Centres
3.645
640
TOTAL
22.419
3.092
Level of
88%
12%
electrification
TOTAL
13.118
8.108
4.285
25.511
100%
Source: Presentation of Zachary Ayieko, CEO, REA, 12/2012
By 2017, 12.000 more public facilities shall have access to electricity. The investment
requires about 1000 Mio. USD.
4.2.2 Government projects: Hybrid mini-grids
12 mini-grids are installed, 7 of them with a small share (usually < 10%) of RE.
Due to the high fuel costs, which cannot by far be recovered through the tariff
revenues, the diesel run off-grid stations are heavily subsidized. For instance, the
station in Wajir steadily generated between 400.000 and 500.000 kWh/ month
between 01/2009 – 10/2012, however, the fuel costs increased from 7 Mio. KSH/
month to around 17 Mio. KSH/month in the same period.
Against that background, the GoK plans to increase the share of RE in the isolated
mini-grids, both in the existing ones and in those, which are currently under
construction, as well as in further planned greenfield projects. The Investment Plan
for Kenya in SREP targets to have at least 30% of renewable energy production in
the mini-grids.
As shown in Tables 17-19, 9,4 MW of additional capacity will be installed in existing
or green-fields mini-grids over the next few years.
Proposed additional RE in the existing minigrids
In the existing minigrids, 1,8 MW Solar PV and 600 kW Wind shall be installed:
Table 17: Proposed addition RE in existing mini-grids
Station
Wajir
Mandera
County
Wajir
Mandera
Diesel
Installed
Capacity
(kW)
RE
Capacity
Proposed
(additional)
Solar PV
Proposed
(additional)
Wind
1746
1600
0
300 (PV)
800
200
300
0
35
Marsabit
Lodwar
Hola
Merti
Habaswein
Marsabit
Turkana
Tana River
Isiolo
Wajir
560
1440
800
128
360
Elwak
Baragoi
Mfangano
Mandera
Samburu
Hombay
360
128
584
500 (Wind)
60 (PV)
60 (PV)
10 (PV)
30 (PV)
50 (Wind)
50 (PV)
0
0
TOTAL
0
250
100
100
100
0
0
0
100
100
100
100
100
1850
0
100
0
600
Proposed RE in the minigrids under construction
There are actually 15 isolated stations/ minigrids under construction. Here, solar PV
capacities of 2 MW in total and 500 KW wind capacities shall be added to the diesel
generation unit:
Table 18: Proposed RE in the mini-grids under construction
No
.
Station
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Eldas
Faza
Hulugho
Kiunga
Laisamis
Lokichoggio
Lokitang
Lakori
Rhamu
Takaba
North Horr
Dadaab
Banisa
Lokiriama
Maikona
Diesel Installed
Capacity (kW)
Proposed
(additional)
Solar PV
Proposed
(additional)
Wind
TOTAL
184
380
184
184
184
640
184
184
184
184
184
640
184
380
640
150
100
150
150
150
150
150
150
150
150
100
100
100
150
100
2000
0
100
0
0
0
0
0
0
0
0
100
100
100
0
100
600
334
580
334
334
334
790
334
334
334
334
384
840
384
530
840
TOTAL
RE in planned hybrid isolated minigrids (Greenfield projects)
Altogether, 44 sites have been identified for installing isolated hybrid mini-grids: 23 of
them have already been identified in the Rural Electrification Master Plan of 2009; 21
additional sites have been selected, as the towns have grown along with its
population and the economic activities.
For these green-field projects, it is planned to install capacities of 17,8 MW in total, of
which 5,6 MW Solar PV and 1,9 MW Wind.
Table 19: Greenfield projects
No
Station
County
Proposed
Proposed
Proposed
36
TOTAL
.
1
2
3
4
5
6
7
8
9
10
11
12
21
22
23
Nachokui
Turkwel
Kaeris
Liboi
Gari
Dukana
Bubisa
Illeret
Darade
Furole
Kibish
Lokamari
nyang
Kokuro
Nadapal
Napeitom
Kerio
Oropoi
Todonya
ng
Loyangal
ani
Lowaran
gak
Kakuma
Haut
Kalokol
1
SubTotal
Bangale
13
14
15
16
17
18
19
20
2
3
4
5
Ndau
Shimoni
island
Ukasi
Ngodhe
6
Takawiri
7
Kiwa
8
Magata
9
Kibuogi
10
Ringiti
11
12
13
Kadaina
Kiwayuu
Gold(ma
kutano)
Diesel
Capacity
Solar PV
capacity
Wind
capacity
Turkana
Turkana
Turkana
Garissa
Mandera
Marsabit
Marsabit
Marsabit
Marsabit
Marsabit
Turkana
Turkana
374
216
390
577
295
330
699
166
185
271
102
184
100
150
100
200
150
100
150
150
100
100
100
100
100
0
100
0
0
100
100
0
100
100
0
0
574
266
590
777
445
530
949
316
385
471
202
284
Turkana
Turkana
Turkana
Turkana
Turkana
Turkana
218
934
108
108
288
79
150
300
100
100
150
100
0
100
0
0
0
0
368
1334
208
208
438
179
Marsabit
71
100
100
271
Turkana
81
100
0
181
Turkana
Samburu
Turkana
200
100
561
100
100
200
3.000
100
100
100
1.100
400
300
861
10.537
Tana
River
184
150
100
434
184
184
100
150
100
0
384
334
184
184
150
100
0
0
334
284
184
100
0
284
184
100
0
284
184
100
0
284
184
100
0
284
184
100
0
284
184
184
184
100
100
100
0
100
0
284
384
284
Kwale
Kitui
Homa
Bay
Homa
Bay
Homa
Bay
Homa
Bay
Homa
Bay
Homa
Bay
Lamu
Turkana
37
14
15
16
17
18
19
20
21
Charuten
de
Dujis
Ijara
Korr
Sereolipi
South
Horr
Barsaroi
Marti
Kilifi
184
100
0
284
Garissa
Garissa
Marsabit
Samburu
Marsabit
184
184
184
184
184
150
150
150
150
100
100
0
100
0
100
434
334
434
334
384
Samburu
Samburu
184
184
100
150
2600
5.600
100
100
800
1.900
384
434
Sub-TOTAL
TOTAL
3864
7264
17.801
KfW/ GIZ as well as DFID intend to strongly promote the involvement of the private
sector in the investment and operation of hybrid mini-grids (generation unit and/ or
grid). German companies should keep an eye on opportunities which may result from
these development cooperation programmes.
Opportunities for German companies in this context can be for example:
Table 20: Opportunities for German companies
Opportunity/ Approach
Effectiveness/ potential
Giving advice on design and specification of the
hybrid mini-grids
Medium
(German Chamber of Commerce could be used as
vehicle and facilitator)
Bidding in public tenders (mini-grids funded by
international donors)
Developing develoPPP.de with German
implementation agencies (e.g. GIZ, DEG)
Low
High
4.3. Undeveloped market opportunities
Undeveloped opportunities are especially in the commercial/ industrial market, the
small-scaled grid connect segment. In very near future, regulations for netmetering/ electricity banking will be in place, which will push the development of
especially solar PV projects in this segment.
In addition, more funds have become available, with focus on this segment. For
instance, 2 years ago AFD launched a credit line of 30 Mio. € to promote private
investments in renewable energies and energy efficiency. The funds are channelled
through 2 local banks, Stanbic and Coop. The second phase of the project will start
in autumn 2013. Along with the financial cooperation goes technical assistance
(Regional Technical Assistance Programme – RTAP), which includes also trainings
for KAM, project sponsors and bank officers.
Main local partner is the Kenya Association of Manufacturers (KAM)
Key areas that KAM is looking at are
38






Industrial energy efficiency
Use of hydropower in the tea sector (see above)
Use of solar thermal and PV in the horticulture/flower sector
Co-generation across all sectors
KAM member investment in energy generation under existing small-scale
FiTs.
Use of rooftop PV in industries with large warehouse spaces
PV is a relatively small, but important part of the project pipeline for KAM RTAP. It is
expected that the upcoming net-metering regulations will pave the way for more
investment from the private sector.
Box 4: Credit line of AFD for private investments in renewable energies and
energy efficiency
Targeted sectors of the credit line include power projects, agro-industry, manufacturing
and tourism. RTAP has built a project pipeline of 88 active projects (by March 2013) and
40 disqualified ones. It is expected that funds will be drawn down in 1.5 years.
The pipeline had projects on renewable energies of a total capacity of 123 MW; 11 MW for
solar PV projects with an estimated investment of 33 Mio. USD.
By March 2013, feasibility studies for 22 projects were done; 27 additional projects were in
stage of preparing TOR for the feasibility study. 2 projects were financed and 7 others
were considered to be proper for financing.
Interest rates for the KAM finance window are 4 to 6%..
4.3.1 Utility power generation
Large scale power production includes projects above 500 kWp that would be eligible
to receive a Feed-In Tariff payment under the current (and developing) regimes for
small scale (500 kW to 10MW) and larger (>10MW) solar farms.
The Ministry of Energy, Kenya Power and Lighting and the Energy Regulatory
Commission are all aware of solar PV and the potential for “larger” solar PV projects
to play a role in the development of the overall power sector. In this regard, they
recognize this role and encourage project development.
Vision 2030 targets development of 300MW of solar PV by 2030. Already, several
PV utility-scale projects have put forward including 20 MW by KenGen, 50 MW in
Garissa16 and others. As of this writing, none of the projects is at an advanced stage.
To date, the Government has prioritized geothermal, wind, coal and development of
projects that are better matched to Kenya’s load profile (which peaks in the evening)
and which are above 100MW.
As mentioned elsewhere, it is anticipated that utility scale PV generation will become
more common 1) following the South African experience and 2) with the reduction of
overall PV costs.
http://www.the-star.co.ke/news/article-281/chinese-firms-build-solar-power-plantgarissa
16
39
Wind power projects (main-grid-connected) will be implemented, once the absorption
capacity of the grid has improved.
4.3.2 Green building sector
The “green building” sector provides emerging opportunities for integrating solar PV
into off- and on-grid buildings. Many Kenyan consumers, developers, architects and
builders have recognized the need to incorporate sustainable features into the built
environment.
For example, a prominent group of architects17 attempts to “maintain green space”
wherever possible in its new buildings and incorporates water catchment and recycling, natural lighting and materials as well as solar water heating into its projects.
By law, 20% of all space in a built area in a city must remain “green”. Moreover, the
tourism industry, NGOs and high-end development industry in the country are
interested and committed to greening energy use.
LEED buildings (Leadership in Energy & Environmental Design) are already being
built and certified in East Africa (see list of Kenyan buildings registered LEED18.) The
list of registered projects (altogether 6 in Kenya) includes the World Bank
Commercial Fit-out (still under construction), a new Nairobi Standard Chartered Bank
(being done by Triad) and the Strathmore University Phase III. Indications for the
green building in Kenya are also the awards given by the African Real Estate and
Housing Finance Academy: In the category of Best Green Building development in
Africa, the new Strathmore Business School building got the award. Nominees were
also Community Cooker Foundation - Kenya, Fedha Plaza - Kenya, The Bridge City
Shopping Centre - South Africa, The Atrium - Kenya and The Coca-Cola Plaza –
Kenya.
It should be mentioned that Government regulations mandate that solar water
heating be included in all new buildings that have significant hot water use. This has
not worked well in practice because of the lack of quality solar water heater suppliers,
the lack of capacity among solar water heater companies and the lack of capacity of
the building industry to plan and execute solar water heating.
The developing appetite for solar PV is demonstrated by several projects which have
already included the technology in spite of unclear Government regulations and
incentives. For example, UNEP headquarters and SOS Children’s Village have
installed systems that are high profile and accepted as pilots by the Government.
Strathmore University, several flower farms and others have similar projects in
place19. A number of PV companies have embedded solar systems in sites where
there is high consumption --- many installations go un-reported because of the lack
of clarity regarding their legality (see below).
17
Beglin Woods is involved in projects over Kshs 10B/year, see data base.
18
See <http://www.usgbc.org/projects?keys=kenya> for details on LEED projects in Kenya
Most companies are uncomfortable to disclose full details of project for a report that will be
shared with competitors.
19
40
Specific opportunities in the green building sector include:

Grid-connected & power back-up for hhouseholds and small business.
This sector is already relatively active --- thousands of inverter/battery
systems operate as grid-back-ups for businesses in Kenya. It is also
relatively common to find solar connected to these systems for the battery
charging.

Building integrated solar: This sector is undeveloped but of interest to
project developers. Early movers are starting projects already.

Development and commercial-based net-metering opportunities (see
below)
Opportunities may come up with the program “Promoting Energy Efficiency in
Buildings in East Africa”, which is an initiative of UN-Habitat in collaboration with
UNEP, GEF and the East African Governments. The objective of the programme is
to mainstream energy efficiency building codes, housing policies, building practices
and housing finance. In this context, UN-Habitat tries to mobilize Finance for Green
buildings, e.g. through a conference in September 2013. First funding is already
avialable: IFC will provide up to 20 Mio. USD financing to the Housing Finance
Company of Kenya, aimed at encouraging property developers to build eco-friendly
homes.
Obstacles to Grid-Connect and Off-Grid Solar Buildings
The consultant team interviewed 4 architects who are interested in solar energy in
principle. The primary obstacles to uptake of PV solar energy in green buildings are:
1. Policy environment: As discussed elsewhere, despite the near-term
economic viability (and practicality) of solar in grid-connect locations,
architects are not confident about including solar PV in projects (even among
consumers that want it) because there is no clear indication from the
Government about net-metering, feed-in tariffs or “energy banking”.
2. Technical capacity: There is very little engineering capacity in Kenya to
design and specify solar system solutions. Without clear technical capacity to
design and implement solar solutions, local architects are hesitant to
recommend it to their clients20.
3. Confidence in the technology and knowledge of options: In general,
architects and developers view solar as an expensive technology that is best
for off-grid “projects”. They have little knowledge of the advanced status of
solar in Europe, Japan and the US, and, if they do, they are unwilling to be
the prime mover in Kenya as they have extremely conservative and
demanding clients.
20
Many architects have extremely poor experience with solar water heaters.
41
4.3.3 Agriculture
In 2011, agriculture contributed 24% to Kenya’s GDP, the highest individual sector
contribution to the GDP. Tea, coffee, horticulture and flower farms are the largest
agricultural foreign exchange earners. As part of the KAM RTAP program flower, tea
and horticulture farms have been especially interested in PV use to off-set power bills.
The agricultural sector is “cash rich” and independently-minded compared to other
parts of the Kenya economy and willing to invest this cash in assets that have long
term paybacks.
Solar PV can be utilized by the agricultural sector in a number of scalable ways that
are discussed in detail below:



Use of solar PV to off-set power requirements on existing farms
Use of solar PV to provide power (and primarily irrigation pumping) as an offgrid or back-up/separate power solutions on existing farms
Use of solar to provide power for out growers (coffee, tea, cashew,
horticulture) who do not have access to the main grid of KPLC.
Use of Solar PV to Off-set On-Farm Power Requirements
Agriculture sector participants are particularly active contributors to the economy that
are less affected by local politics or down-turns in the international economy than
tourism as their markets are stable and bring in foreign exchange directly. Kenya is
a leading global producer of tea, coffee, horticulture, cut roses, pyretheum and sisal.
Production occurs via plantation and out-growers (see boxes on flower and tea
industry). Energy is a major part of their costs.
The agricultural sector focus in Kenya has been historically on market-ready
applications and particularly on solar pumping.
Flower farms have recently shown interest in solar photovoltaic systems to cover
their electrical energy requirements (fridges, lighting and other electrical devices).
Especially farms from the Mt. Kenya region and Nakuru region report that they suffer
from the insufficient power quality of the grid.
Flower farms have been leaders in renewable energy investments: Uhuru farm (72
KW solar PV, provided by Azimuth Power ), PJ Dave invested into a 100 kW biogas
plant (partly subsidized by Ministry of Energy), Stokman installed 0,5 ha SWH panels
for heating the water which is needed for the greenhouses/tables.
Some farms such as SIAN have not yet done anything to reduce their energy costs/
diesel costs, but are heavily interested. KAM RTAP is currently conducting audits in 2
large farms to assess viability of solar PV investments.
Considering that the flower industry in Kenya comprises around 100 active farms, the
potential is quite significant. In addition, the flower industry is quite open-minded
towards the concept of sustainability: Most flower farms are exposed to the
requirements of European buyers at a “clean supply chain”, so that they need to
meet social and environmental standards. Thus, the Kenya Flower Council has
introduced a “Code of Conduct” and a comprehensive auditing scheme.
Tea processing factories are another potential clientele for German companies.
They just start to think also about solar PV solutions as back-up to the power supply
from the public grid. The production is the largest contributor in the agriculture sector.
42
The electrical energy requirements are quite high, have a share of around 30% at the
total production costs. The most significant key player is KTDA, Kenya Tea
Development Agency, which manages 54 tea factories which have altogether a
share of 60% at overall national tea production.
Box 5: Kenya Tea Development Agency (KTDA)
 Management of 54 tea factories
 Corporate shareholder-based, i.e. each factory serves by average 10.000 small
farmers (altogether there are around 550.000); the Board of each factory has 6
representatives of farmers
 Tasks of KTDA: all management, including the collection, processing, delivery/
marketing to auction
 Energy has become a major issue since 2000:
 30% of total production costs (15-16 KSH per kg tea)
 Average demand per factory: 400-500 kW
 First focus: thermal energy for tea drying  switching from furnace oil to
firewood  costs could be reduced by one third; now sustainability issue
 own land for plants
 Current focus: electricity use. Factories are usually at the end of power
lines and are, thus, very much affected by failures of the grid (motor drives
are heavily affected, life time is shortened);
 Kenya tea stands for quality  requires “quality power”
 Alternatives: mainly hydro has been considered, e.g. 1 factory with 1 MW
hydro; 10 sites have been identified for hydro; 6 will be financed by Stanbic
(AFD credit line; 4 factories will constitute a Special Purpose Vehicle (SPV)
to manage a 4-5 MW plant).
 Other alternatives could be Solar, CHP, Biomass, Geothermal, wind
 Wind: 1 site has been identified; wind is currently measured
 KTDA also thinks about becoming an IPP  24 MW wind power, therefore
1 years ago the KTDA Power Company was established
 Solar: KTDA is in contact with Martifier as potential EPC, but biggest
challenge is the FIT. With Electricity Banking it could be commercially
viable
 CHP: here mainly interested in gasification on basis of firewood! Interest
in getting into contact with suppliers!
 Energy Efficiency: 2 energy audits have been conducted.
Source: Interview with the CEO of KTDA Power Ltd.
Solar PV Pumping Power Solutions (off-grid & back-up)
43
Because of the isolated nature of many agricultural sites (often at the end of weak
power lines) and because of their long history of endeavouring to maintain
independent energy supplies, agricultural sites are willing to invest in power systems.
Solar pumping for irrigation, human consumption and watering livestock is of
particular interest as farmers rely on stable supplies of water, and often must invest
for both power and pumping solutions together. Traditionally, solar for pumping was
limited to very small farms (i.e. drip irrigation) and water supply schemes. However,
recent drops in PV prices and rapid development of solar pumping solutions have
enabled a re-assessment of the viability of solar-linked pumping systems for
medium-sized sites. The fact that solar pumps do not require batteries is especially
interesting to consumers and equipment suppliers.
Davis and Shirtliff is a specialized player in the solar pumping sector having installed
on the order of 1800 solar pumping systems into East Africa between 2010 and 2013,
over 70% of which were in Kenya. Solar pumping systems sold range in size
between 7.5 kW and 21 kW. Sales of solar pumping equipment nearly tripled
between 2010 and 2013.
Solar as an access solution for off-grid out-growers
Over 60% of Kenya’s exported tea, coffee and horticultural production comes from
small holders (as opposed to large plantations). Such out-growers are often located
off-grid, and distributed in ways that do not allow low cost connections to the power
grid. They have cash incomes and prioritize purchase of solar home systems for
their households. They are also nearly always members of well-organized farming
cooperatives and associations that have strong access to finance.
There are opportunities to “cluster” groups of farmers together to provide groups of
solar home systems or even mini-grids -- simultaneously financing their purchase
and ensuring quality to consumers.
Of interest is for instance Wilmar Agro Ltd, which collects flowers from 3000
growers, of which around 75% are off-grid. Renewable energy supply systems such
as solar PV and wind are interesting options not only for Wilmar Agro Ltd. itself, for
its central cooling houses for example, but also for the growers, especially because
they are grouped and clustered: There are 15-20 formally registered groups, which
have technical advisors on their side (fully employed by Wilmar Agro). The groups
need to store the flowers for up to seven days before they are collected by Wilmar
Agro. Therefore, they need to have cooling houses. Actually the cooling stations on
group level rely on diesel generators. As the growers of a group are quite near
located to each other, it could be checked to what extent the group can be used as
“anchor consumer” for power from a solar PV system/hybrid system, which could
also supply power to the community (e.g. for pumping etc.)
Obstacles and barriers
The obstacles to the development of increased use of solar in the agricultural sector
are similar to those in other areas.


First, even if the farm desires solar equipment and is convinced of its
advantages, there is a lack of up-front investment capital
Secondly (and especially with large farms), there is a lack of faith in
solar equipment as well as a lack of capacity of the suppliers to
guarantee their equipment
44



Thirdly, there is a lack of incentives and/or policies to encourage
agricultural groups to take up solar solutions
Fourth, there is a general lack of awareness of agricultural leaders
about the capabilities of solar PV
There is a lack of faith in the Kenyan solar sector to design and
implement solutions
4.3.4 Tourism
Kenya is known as a world-class safari destination, able to accommodate visitors
with high class facilities (meals, rooms, services, etc.) even in the most remote
locations. Since 2009, Kenya Tourist Board has been Kenya as a high value for
high-spending tourists and focusing on guest experiences. Improving the tourism
service value necessarily means “greening” the industry, and many of the tourism
players are interesting in greening/improving energy services to save costs and take
advantage of this marketing opportunity.
In 2010, Kenya recorded its highest number of tourist arrivals ever at 1,095,94521 a
15% growth over 2009. The 2010 Tourism performance has surpassed the 2007
record by 4.5 per cent the latter being the best recorded year in terms of tourist
arrivals and earnings. Revenue for tourism increased in 2011 to KSHS 97.9B.
Table 21: Tourism sector indicators
Tourism
Earnings( KSh.
in Billion)
Number of
Visitors Arrivals
in Kenya ('000)
Number Hotel
bed-Nights
Occupied ('000)
Number of
Visitors to Parks
and Game
Reserves ('000)
2001
02
03
04
05
06
07
08
09
10*
24.3
21.7
25.8
38.5
48.9
56.2
65.2
52.7
62.5
73.7
994
1,001
1,146
1,361
1,479
1,601
1,817
1,203
1,490
1,609
3,355
3,437
2,606
3,791
4,477
5,922
6,939
3,699
6,243
6,662
1,664
1,784
1,576
1,821
2,133
2,364
2,495
1,634
2,385
2,759
Source: Kenya National Bureau of Statistics
The high cost of energy at hotel and lodges is a major drag on the industry.
Although the sector has been very successful in providing high levels of catering and
accommodation services to guests, it is still in the early stages of reducing its energy
costs and greening its energy systems. Several hotels are focusing on this.
There are two primary categories of opportunities for German solar companies:


Solar PV systems for off-grid camps and lodges, either in the form
designed stand alone systems or hybrid mini-grid systems
Grid-connected solar to help off-set electricity costs in lodges and sites,
particularly where there are high air-conditioning sites
These opportunities are of special interest to German companies because they must
be engineered and carefully-matched to efficient use of equipment by the site. Local
Kenyan companies, in most cases, are unable to provide this complete service.
An interesting gate for German companies to get access to those hotels, lodges
and camps which are interested in green energy, is the civil society organization
“ECOTOURISM KENYA”, which is one of the 7 private-sector associations that
21
http://www.tourism.go.ke/ministry.nsf/pages/facts_figures
45
make-up the Kenya Tourism Federation (KTF). Currently the organization has more
than 400 members, comprising individuals, companies, community-based
organizations. The goal is to promote tourism practices that will conserve Kenya’s
natural environment and improve livelihoods of associated communities. Much focus
has been put on the promotion of community-based tourism enterprises, which also
includes that Community-based organization have own tourism facilities.
ECOTOURISM organizes regularly workshops and it could be an idea for German
companies, which like to target hotels, lodges and camps to hold such a workshop
in cooperation with Ecotourism Kenya. The AHK Kenya can be the co-host.
A comprehensive eco-rating certification (bronze, silver, gold) system provides
transparency, so that it can easily be concluded which facilities are very innovative:
Actually, 8 facilities hold a gold eco-rated certificate, e.g. Porini with its camps in
Amboseli and Mara, Sanctuary Olonana and Sasaab Samburu. A lodge which is
well-known for its “green activities” is also Severin Sea Lodge. The hotel was the
first to set up a biological waste water treatment plant and implemented solar energy
in its infrastructure.
An interesting approach for German companies would be to consider the facilities
as an “anchor consumer” who could supply power to the community (through
mini-grids). This business model should work well where community groups/
community-based organizations have tourism facilities (e.g. Maji moto).
See the data base for a list of major tourism players of interest to German solar
companies.
Obstacles
Following the 2010 German Renewable Energy Export Initiative, considerable effort
was made by several players to approach the tourism industry and to develop minigrid projects with off-grid hotels. Despite the very real market opportunity, the sector
has not yet developed projects over 30 kWp. There are a number of reasons for this:

A lack of positive demonstrative examples prevents tourism sector investment

Small size and limited capacity of solar companies (vis-a-vis generator set
supply companies). Solar companies are unable to audit, design or prepare
the sophisticated bids that the tourism sector needs to see to approve such
large investments. Tourism companies are comfortable with the large
generator suppliers that they have long history of working with than small
solar companies that they feel do not have the technical capacity to serve
their needs

Difficulties of financing power systems by tourism companies. The tourism
sector requires a relatively fast turn-around on investments. The 6 to 10 year
payback periods of large solar systems off-grid is not attractive. Likewise,
there are no attractive incentives, and financial institutions do not have
expertise to evaluate solar equipment.
Figure 7: Subscriber growth (numbers, growth
rate
4.3.5 Telecom
Kenya’s Telecom industry is the
largest in the East Africa region
with
29.2
million
mobile
subscribers a penetration of 74%
46
of the population. Half of the land area is covered by signal and the majority of the
uncovered population is found in the rural areas. There are four main telecom
companies in Kenya:
Safaricom is the market leader with about 19 million subscribers. Airtel, Orange and
Essar Communication (operating as YU) share the remaining 10 million subscribers.
As at the end of 2012 the number of telecom base stations in Kenya was 5565
with 4988 being on- grid and 577 being off- grid, all of which are owned by the
telecom companies but the operations and maintenance has been outsourced to
various companies. The number is expected to increase by 300 BTS in 2013.
Table 22: Estimated energy requirements for BTS
Load of Older and New Generation BTS
97% of the on-grid sites have
reliable power availability with
Older
New
the rest experiencing frequent
Small capacity BTS
1.6kW
0.8 kW
power outages lasting between
Medium capacity BTS
3.4kW
1.3kW
6 – 12 hours and sometimes
even more than 12 hours.
Large capacity BTS
5.4kW
3.2kW
Therefore the use of Diesel Generators (DG) and battery banks has become integral
in the Telecom industry as a source of backup power for base stations while in some
instances running them 24 hours seven days a week.
Figure 8:Off- grid Power
Deployment
12%
24 x7 DG
28%
60%
DG- battery
hybrid
Green
power
In Kenya there are 2477 towers that utilize DG for backup power, 345 run on DG –
battery hybrid throughout and 71 are green power sites. The on-grid sites consume
an average of 400 litres per month while off-grid sites that run DG continuously
consume 1100 litres of diesel per month.
In Mid 2012 Green Power for Mobile was started in Africa with the aid of
international finance cooperation (IFC) and the government of Netherlands as part of
the global effort of the telecom Industry to utilize solar, wind and biomass energy to
power telecom base stations aimed at reducing the GHG emissions in the telecom
industry. Currently only 5% of the off-grid telecom base station utilize green power
alternatives with solar hybrid systems becoming the preferred choice for green power
development in the region. Winafrique ltd was the first company involved in “greening”
the telecom industry with its main client being Safaricom.
The Telecom towers sharing concept has started to take root in the East Arica region
due to the high cost incurred in the building and operation of the towers. This has
seen the entry of three tower companies mainly Helios tower Africa, Eaton tower and
American tower company in the region.
47
Moreover Mobile Network operators are currently looking at two concepts of
deploying green power to the base station mainly the CAPEX and the OPEX MODEL.
In CAPEX Model either the mobile network operator or the tower companies invest
the total capital required in the roll out of the renewables while in the OPEX a 3 rd
party invests the total capital and sells the power to the tower operators.
The main challenge being faced by the OPEX model is the lack of serious renewable
ESCO service companies in Kenya and in the region which are able to meet the
market needs. For that reason, the Mobile network operators and tower companies
usually prefer the CAPEX model for renewable energy deployment and engaging
partners for operation and maintenance of the equipment. There is therefore a huge
opportunity for companies that can offer attractive and reliable green power sources
in the sector.
;
4.3.6 Manufacturing sector
Manufacturing represents an important sector of the Kenyan economy, accounting
for about 10% of the GDP. The manufacturing sector is the third largest energy end
user in the Kenyan economy. In the Government’s planning document, Kenya Vision
2030, the manufacturing sector is expected to continue contributing 10 per cent
annually to Kenya’s GDP. It is the second largest user of petroleum products, after
the transport sector, and the largest consumer of electricity. In 2012 this sector grew
3.4% while in 2011 was 3.1%.
Kenyan manufacturing sector can be segregated in 12 categories as follows:
 Food, beverages and tobacco
 Building, construction and mining
 Chemicals and allied sub-sectors
 Energy, electrical and electronics
 Textiles and apparel subsector
 Leather products and footwear
 Paper and paper-board
 Metal and allied sub-sector
 Motor vehicle assembly and components
 Pharmaceutical and medical equipment
 Plastics and rubber
 Timber, wood products and furniture
Many of these industries have processes in which they utilize electricity for drying,
grading, and packing.
In 2010, with the assistance of the French international aid agency, the Kenyan
Association of Manufacturers launched a US$ 30M program to help Kenyan industry
finance cost-effective energy efficiency and renewable energy solutions. This
program, RTAP, is specifically designed to help grow the market for renewables and
to raise awareness among key industry stakeholders in green energy opportunities.
Costly and unreliable power is one of the major obstacles that Kenyan manufacturers
face on a daily basis. On average, manufacturers in Kenya pay US$ cents 10.00 per
kWh, while Far East competitors pay an average of US$ cents 0.5 per kWh.
Manufacturers in Kenya cite electricity as among the top most serious
constraints to manufacturing. 67% of those interviewed were unanimous that the
cost of electricity is a major hindrance to the competitiveness of local industry. A
comparison of the electricity costs between Kenya and key competitor countries like
48
China, India and South Africa, shows that Kenya is quite uncompetitive on cost and
quality of power.
In short, Kenyan industry must:




Pay extremely high electricity rates
Invest in generators to weather long periods of power outages
Bear a substantial part of electricity connection costs
Cover the inefficiencies of the national utility
According to a 2012 KAM study, manufacturers in Kenya experienced an average
of between 8 to 12 power outages per month in 2010, which together with power
surges, resulted in an average lost production value of 7 % of total annual sales.
Table 23: KAM industrial survey, 2012
Electricity provision indicators
Frequency of power outages/month
From 8 to 12 times
Production loss due to power outage
7% of sales
Firms with generators installed
44%
No. of days to obtain electricity connected
From 3 to 7 days
Within this study it is, of course, not possible to identify in each of the sectors
concrete projects. However, there are some indications which can help German
companies to select some potential end customers. For example, it seems to be
advisable to look carefully at companies, which
 Show an extraordinary engagement in the field of energy: Industries which
were nominated for the Energy Management Award of KAM or even get an
award should be at least open towards RE systems (e.g. solar PV and wind).
 Have CSR on their agenda: These companies could be interested to install
Solar PV systems not only for their own use but maybe also for the
community.
Following table shows some selected companies, which are pioneers to some extent
in the field of energy or CSR.
Table 24: Selected “pioneer” companies in energy & CSR
Company
Sub-Sector
Indication
ARM Cement Ltd. Cement
Energy Management Award Winner for
'Energy Innovation' Category 2009
Bamburi Cement
Cement
Established an Industrial Ecology department
whose main responsibility is the
development, management and seeking out
alternative energy sources for the company
to reduce dependency on electricity and
heavy fuel oils.
BIDCO
Oil/ Food
processing
Invested in 5,4 Mio. € filter kiln to eliminate
dust emissions (goal until end 2012: 30%
reduction of dust)
Documented energy policy, e.g. “We will
monitor, record and evaluate the
49
consumption of energy and enhance
efficiency through re-designing and
implementation of energy efficient programs”.
Energy Management Award in “high
Performance” category
Brookside
Kenafric
Industries Ltd.
EABL
Mt. Kenya
Bottlers
Sameer Africa
Ltd.
Dairy
Confectionary
Alcohol
beverages
Authorized
producer &
distributor of
Coca-Cola
products
Very diverse
(agriculture,
tyre production
etc.)
Environmental policy greening campaign; 3 R
strategy: reduce waste, reuse and recycling
Big cooling plants as major energy
consumers
Overall winner of the Energy Management
Award 2013 (for the fourth time)
Environmental sustainability programme with
focus on water and energy efficiency;
in the Top-5-Ranking of the global beer sites
with regards to delivering efficiencies on
water used & energy used per litre of beer
produced.
CSR  water use and energy/ climate
change as key issues
Winner of the Energy Management Award
2012, in the category Best Energy
Management Team
Annual Meeting May 2013:
Rising energy costs are of major concern to
Sameer Africa: Energy costs rose by 20
percent in 2011 mainly due to a 27 percent
increase in the cost of furnace fuel.
Options considered by Sameer Africa:
 refurbishing the number one boiler which
should reduce furnace oil consumption by
15 percent,
 exploring the possibility of introducing a
solar energy and a coal fired steam
generation facility
Source: Energy Desk, Delegation of German Industry and Commerce
An important gate for German companies is the Kenya Association of Manufacturers
(KAM): Established in 1959 as a private sector body, KAM has evolved into a
dynamic, vibrant, credible and respected business association that unites
industrialists and offers a common voice for businesses. KAM’s mission is to promote
competitive local manufacturing in a liberalised market.
For 10 years KAM is supported by various international donors (e.g. UNDP, AFD,
danida) to promote energy efficiency and renewable energies in the Kenyan industry.
In framework of a cooperation project with UNDP, for instance, KAM has established
the Centre for Energy Efficiency and Conservation (CEEC). It coordinates energy
audits in the industry, i.e. that KAM facilitates a pool of qualified energy auditors who
50
conduct the audits at subsidized rates in companies22. KAM is also giving the Energy
Management Award to Kenyan companies. In addition, KAM offers a lot of seminars
and workshop on energy efficiency. Through its network KAM also helps to build up a
pipeline of RE and EE projects for the credit line of AFD, within the Regional
Technical Assistance Programme (RTAP).
5. Engagement and positioning of German companies
The solar and wind market in Kenya is not a completely new one, even if in some
market segments the business has not yet taken off really. There are already a
critical number of German companies with engagement in the market (see table X).
Table 25: German companies with engagement in Kenya
Company
Engagement
Energiebau
Solarstromsysteme
Energiebau plans and installs grid-connected and off-grid Solar PV
systems as well as Solar PV-hybrid ones, turnkey provider of offgrid system for 30 years,
Local cooperation partner Solar works Kenya
Engineering and installation of a 515 kW-Solar PV rooftop system
on the new UNEP office building, Nairobi
Training of solar technician/ engineers in Kenya, in framework of a
partnership project (develoPPP.de) with GIZ and in cooperation with
SMA
Donauer
Solartechnik
Distribution, project development, engineering, installation, O&M
services, consulting
Represented in Kenya/ East Africa by Harmonic Systems Ltd.
(http://www.harmonicafrica.com/) , since 2012
Lodge electrification, Kenya, 5,5 kWp
Hybrid electrification of a refugee camp, Kenya, 15 kWp (with
automated diesel generator integration)
5 Off-Grid systems for WE!Hub, Kenya, currently in commissioning
with a total 90 kWp
Juwi
Juwi is a project developer and an EPC, also in the field of off-grid
solar power supply systems
Represented by DREAMPOWER, Nairobi
e.g. 10 PV systems for ATMs of a leading local bank, Kenya
Interest in doing business in the field of hybrid systems
MobiSol
Markets, monitors and finances SHS through use of mobile money
platforms (Tanzania, Kenya, Rwanda)
SolarKiosk
This sells products and services in rural areas (e.g. charging mobile
phones, batteries, lamps; services such as cooling, internet and
communication). Products such as pico-systems and SHS are sold
The Government of Kenya subsidizes the energy audits by 75%: Investment Grade Audits
cost 1 Mio. KSh (around 10.000€), however, the company just pays 250.000 KSH.
22
51
as well.
In 12/2012 a subsidiary was established in Nairobi. Al least 5 Kiosks
are deployed in Kenya.
Centrotec/Ubbink
Ubbink as Dutch subsidiary of the German Centrotec set up the first
solar module manufacturing company in Eastern Africa, in 2010
teaming up with Chloride Exide, which is already an established
supplier of solar systems in Africa
Production capacity of 30.000 modules per year
Solar modules, mainly in the range between 3.6 Wp to 80 Wp, are
manufactured based on reworked broken high quality solar cells.
The modules are suitable for use in private homes, village plants
and solar power plants serving schools, hospitals, water supply
infrastructure and telecommunications systems.
Siemens Stiftung
(Foundation of
Siemens)
Installation of Water-Energy Hubs (WE!Hubs) in Kenya: The
WE!Hubs utilize decentralized solar power stations and modern
technologies to supply communities in remote regions in Kenya with
energy and water.
The Kenyan social business Light for Life Ltd. is responsible for the
successful implementation on site and will run the WE!Hubs after
project termination. It has been founded by the Kenyan company
Thames Electricals Ltd. specifically for this purpose. Global Nature
Fund is coordinating the project. OSRAM is the project’s technology
partner and advises in technical as well as conceptual issues.
EnBW
The German power utility develops 2 wind power projects of 40-60
MW each.
Fichtner
One of the largest independent consulting and engineering company
in the field of water & energy , with more than 30 years of
experiences in Africa
Scope of business in Kenya: studies, project supervision etc.
Clients: e.g. MoE, KPLC, KETRACO, banks and private project
developers
Projects: e.g. grid connection study for 90 MW wind power park in
Lamu
Source: German Energy Desk
German solar companies need to do in Africa what they did in Germany: bring solar
to the center of energy discussions. Currently, solar energy is seen as a power
source for the off-grid poor. This perception hinders the solar industry development
because a) it has put a ceiling on the development of PV power as a source for
commercial, household and urban markets and b) the low-cost requirements of the
“access”-markets have driven out German players and created room for lower quality
suppliers from Asia.
There is room for everyone in the markets --- however, there is a need to create the
space for quality and there is a need to educate Governments and key consumers,
that solar is not only for the poor.
Key strategy points for German companies include the following:
52
 Develop products that meet the unique needs of the East African
market. German grid-connect products do not adequately address the demand
for products that can both supply power and survive frequent power cuts. They
have not been adequately marketed to consumers that need long-life and flexible
off-grid solutions.
The adaptation of products and business concepts is promoted by German funds
such as the CLIENT Programme of the BMBF, but also by broader funds such as
the ZIM (Zentrales Innovationsprogramm MIttelstand) of the BMWi.
 “Make the difference”, create a special value-added to the customers:
 Benefit from the “made-in-Germany” reputation and sell the benefits of
quality: Many German products are high cost but worth the high cost. There
is a need to match German quality capabilities with existing demand for quality
among consumers. Especially in the solar PV market, the reputation of solar
energy has been affected to some extent by many bad quality products. For
that reason, quality assurance initiative such as Lighting Africa and the set-up
of testing labs in Strathmore University. German companies bring also in their
expertise in these quality initiatives.
 Contributing to the trainings on solar PV: Especially due to the Solar PV
regulation trainings on solar PV are actually developed and realized. Curricula
for the trainings of technicans for small systems (up to 100 W) and medium
ones are developed and the training will be conducted by selected training
institutes; the curriculum for The training on grid-connected solar PV and hybrid
systems will be developed with support of GIZ. Anyway, the trainings offer the
opportunity to come in with some practical training modules from German
companies or to give some equipment on which the technicians can be trained.
Some companies such as Energiebau Solarstromsysteme and SMA are
already involved through the German Solar Academy (GSA) in Nairobi.
 Look for specialized niches: Many of the successful small Kenya players
have flourished because of their ability to address the NGO market, export
markets to South Sudan and Somalia, prepare proposals for larger clients, etc.
This is an excellent survival skill in a difficult market.
 Coming not only with the product and the solution, but also with a
business model: One of the crucial challenges in Kenya is the financing of the
upfront investment costs. Leasing models or the model, which MobiSol runs,
helps to reduce these costs. Of course, ESCO-models are also attractive for
the clients because they just face running costs, while the investments are
done by the energy service provider.
 Supporting the client to get access to finance: This is the most important
key to do business in the market. German companies should inform about
available funds, linking the client up to these ones and even support him in the
communication and acquisition of funds. Following table summarizes some of
the relevant funds:
53
Table 26: Sources for financing solar PV and wind projects
Agency/Project
Type of
Description of Project Activities
Project or
Company
African Enterprise
Challenge Fund
Project-based
interventions
AFD/KAM RTAP
Credit line
Housing Finance &
IFC
Financial
agency
Equity Bank
Financial
agency
IFC Climate
Investment Center
Donor project
(WB)
responsAbility
Green Energy
Equity Fund
East Africa
(upcoming)
GIZ/KfW
DFID
Donor project
Donor project
Regional private sector program supports private companies
to invest in innovative renewable-based solutions that help to
increase energy access. Project receives support from a
variety of donors and holds regular regional competitions for
private companies.
$30M AFD Private sector program to support commercial
energy efficiency and renewable investments through lowinterest loans
Credits are finally provided by the partner banks Stanbic and
Coop.
Housing Finance Company received US$ 20M IFC support
(from Canada) to help the mortgage lender increase access
to housing finance and pioneer the market for
environmentally friendly housing in the country. Long-term
funding is aimed at encouraging property developers to build
eco-friendly homes.
Kenyan bank with portfolio focused on renewable energy
investments. Various sizes.
Project seeks to “incubate” small Kenyan green companies
with business-to-business support and small grants and
equity funds for business growth.
- Target 40 – 50 Mio. USD; investment of energy
entrepreneurs and of Renewable Energy projects.
- First closure: expected for autumn 2013
- Equity contribution by average 2 – 4 Mio. USD/ project,
around 25% of overall project volume
- Up to now, no solar PV projects among the projects with
completed feasibility study,
- But fund is open for Solar PV projects, e.g. contributing
equity to ESCO who is investing in Solar PV system and
supplies the power
22,5 Mio. € project. Development and implementation of solar
PV hybrid mini-grid, including investments, capacity building,
development of operation schemes, policy advice etc.
Developing major regional investment project to support
renewable energy powered mini-grid investments:
-
-
-
Minimum 50 Mio. British Pounds East Africa
International Green Mini-Grids Promotion Fund 
support to feasibility studies and preparatory work,
support to evaluation
Multi-Country Loan and PGR Fund  providing
long tenor senior debt + partial risk guarantee on
off-taker default
Country-specific Project Development and Impact
Fund  Support to project development, support to
community mobilization, support to end-user
finance
KfW/ GIZ as well as DFID intend to strongly promote the involvement of the
private sector in the investment and operation of hybrid mini-grids (generation
unit and/ or grid). German companies should keep an eye on opportunities
which may result from these development cooperation programmes.
54
Opportunities for German companies in this context can be for example:
Table 27: Opportunities for German companies (mini-grids)
Opportunity/ Approach
Effectiveness/ potential
Giving advice on design and specification of
the hybrid mini-grids
Medium
(German Chamber of Commerce could be
used as vehicle and facilitator)
Bidding in public tenders (mini-grids funded
by international donors)
Developing develoPPP.de with German
implementation agencies (e.g. GIZ, DEG)

Low
High
Coming along with German finance: key instrument is the The export credit
scheme (including a cover) is one of the most important financing
instruments, German companies and especially the responsible of business
development and sales should know very well. The cover offers protection
against borrower’s failure to make payment within 1 month after due time,
other commercial risks (e.g. insolvency) as well as political risks (e.g. warlike
events). The lending bank acts as policyholder. Euler Hermes Deutschland
AG and PricewaterhouseCoopers manage the official export credit guarantee
scheme on behalf of the Federal Government. Euler Hermes acts as leading
partner in this consortium.
In contrast to a supplier’s credit, the export credit has the advantage that the
lending bank negotiates the terms and conditions with the borrower (foreign
buyer or bank). Know. The German suppliers should ask already quite
early a lending bank (e.g. house bank) to prepare a preliminary financial
proposal, which the German supplier can take along with his technical
proposal to meetings with the (potential) buyer. This saves time and
increases the interest of the clients significantly. Import-Export Banks like the
American one or the Chinese one are very fast and usually the client follows
the First-Comes-First-Serves-Approach. The following table shows the
recommended procedure:
Table 28: Recommended procedure (export credit financing)
Activity
Responsible
Gathering rough information about the project, e.g. :
Supplier
-
Overall order volume
Potential client (private or public; if private
maybe already balance sheet/ annual report)
…
Check with potential lending bank the eligibility of
the project/ order for export credit financing (and
respective cover)
(maybe supported by local
partner or German
Chamber of Commerce)
Supplier with lending bank;
lending bank with Euler
Hermes (for the cover)
Rough estimation of terms and conditions (loan
duration, interest rate, premium rate for cover etc.)
55
First visit/ meeting with the potential client, technical
presentations (together with the preliminary
information about financing opportunity)
Supplier/ Buyer
Request for detailed project description and other
information needed for detailed technical and
financial proposal
Supplier
Submitting the detailed technical and financial
proposal to client
Supplier
Follow-up
Supplier
Negotiation and loan agreement between lending
bank and buyer
Lending bank
Closing export contract
Supplier/ Buyer
Applying for credit cover
Lending Bank
(if needed with support of
German
Chamber
of
Commerce
in
target
country)
Source: German Energy Desk
The cover policy (premium rate for cover included) differs from country to
country and depends on the risk category of the respective country. Kenya is
in category 6. The cover Policy is as follows:
Table 29: Cover policy for Kenya
Parameter/ Category
Description
Short-Term credits
There are no formal restrictions on cover
Medium-/ long term
Smaller, foreign exchange-generating transactions
will be considered for cover on a case-by-case
basis.
Collateral
Collateral is not normally required
Country risk category
6
Source: http://www.agaportal.de/en/aga/deckungspolitik.html
There is no clear definition of “smaller” transaction (from experience
estimated to be < 10 Mio. €). That does not mean, that transactions of higher
volume are not possible to be covered. But it becomes probably more
complicated and requires more argumentation. The basic issues of the cover
policy is decided by an Interministerial Committee (IMC) and in case of higher
volume transactions, maybe it can be of help to contact the Federal Ministry
of Economics (BMWi), which has the lead function.
The premium risk for the cover is calculated in consideration of the risk
category of the country and the repayment term of credit, i.e. that it has to be
calculated from case-to-case. The interest rate of the credit is more or less
fixed according to the CIRR - Commercial Interest Reference Rate of the
OECD. Important requirement of a German export credit and credit cover is,
that usually 70% of the order volume has to come originally from
56
Germany (German content). Components manufactured by subsidiaries of a
German company abroad, are not considered as part of the German content.

“Shaping the demand”: Some market segments such as the small/ medium
grid-connect one are still “sleeping”, which requires a pro-active approach. For
example, grid connect, though not active yet, will be an important market in the
long term. Those players that get the first projects are likely to continue to enjoy
a strong position in the developing sector. German companies have to approach
potential clients and offer them to calculate the case. Besides that, German
companies can generate the demand through contributing to policy advice: they
can actively support and participate in the policy dialogue with local partners.
Another channel which has already been mentioned is the training of
stakeholders in the public and private sector. In this context, they can
cooperate with strategic partners such as KAM (Kenya Association of
Manufacturers) and KEREA (Kenya Renewable Energy Association).

Selecting very carefully local partners (e.g. for installation and
service as well as for business development): Seek high-end partners as
suppliers (often these are new entrants to the market). Old players are often no
adapt to the rapidly changing new PV environment and continue to follow the old
off-the-shelf/Government procurement routes which do not favour high quality
products. In addition, it can be useful to look not only for those companies which
already have solar PV products and solutions in their portfolio; there are
suppliers of electrical equipment (e.g. of diesel generators, electric drives etc.) in
Kenya, who have already successful business relationship/ dealerships with
European, even German companies. Some of these companies think about
diversification and seriously think about entering the solar PV market. If such
companies address relevant clients from the German supplier’s point of view and
have a good corporate culture in terms of quality and customer relationships,
they could be suitable partners.

Recognize that African markets take time to develop. If you cannot
participate over the long term, this may not be a market that is of interest.

Stick to the sector you have targeted. Do not try to do everything.

Be aware of the export markets. Kenya is a regional hub from which new
markets can be built. Have a plan for this.
57
6. Annexes
Annex 1: List of Players
Company
Importers/Manufacture
s/Large Players
Chloride Exide
Center for Alternative
Technologies (CAT)
Company Description
& Distributors
Company Strategy
Major
Product
Solar/PV Business Sector
Equipment Sources
Contact
Person
Contacts
Kenyan Company with
subsidiaries in
Tanzania, Rwanda &
Uganda. Owned by
battery manufacturer
(Associated Battery
Manufacturers). Largest
player in PV market.
Core business is lead
acid batteries
(Automobile) with solar
PV contributing a
significant portion to the
overall business. Sell
PV in order to push
their batteries. Have 10
outlets/depots and >250
dealers all over the
country. Sell both retail
and wholesale and offer
both installation and
after sales services
through their depots.
Wholesale supplier,
Retail sales, Exporter,
importer and Distributor
of PV components and
Lorentz Pumps
All PV
components,
batteries.
Inverter
battery backups,
refrigerators,
pumps. Solar
water
heaters. Wind
generators.
Whole sale and large
project implementer.
Institutional market and
small commercial system
market.
Local batteries from
ABM. Supplies
Suntec and Ubbink
modules, Phocos,
morning star Charge
controllers, Xpower
and Victron, SMA
inverters and various
BOS from Germany,
China, US.
Netherlands
Megasun SWH.
Joseph
Muthoka
Solar Water
Heating &
project
Manager
muthokah@chlorideexide
.com
+254 722 523 430
All PV
components.
Inverters,
batteries and
water pumps
Retail, institution,
corporates and supplier to
other PV companies.
Supplies Canadian
solar
Modules,Suntech
modules, Outback
and Xantrex inverters
( USA), Sollatek BOS
UK),Trojan batteries (
USA) and Deka
batteries
Nawir
Ibrahim
Chief
Executive
Officer
info@cat.co.ke,
nawir@cat.co.ke
+254 (0) 733 512 004
Kenyan-owned family
business. PV
component wholesaler
58
Ubbink East Africa
PV wholesaler
Assembly of PV
modules locally
PV modules
Small scale retail market
and institutions
Local assembly of PV
modules
Haijo Kuper
Managing
Director
hkuper@ubbink.co.ke
+254 20 23 38 139/40/41
Davis & Shirtlif
Pumping/swimming
pool service company
expanded into solar in
2005. Established >20
years. Rapidly
growing. Operate in
Kenya, Tanzania,
Uganda, Rwanda,
Ethiopia and Zambia.
10% of their business is
PV. Focus on NGO,
pumping and wholesale
to distributor. Operate
through a number of
small scale agents that
provide customer
service. 2nd largest PV
player in Kenya.
All PV
components.
Inverter
battery backups, pumps.
Solar water
heaters.
Wholesalers. NGO Market,
institutional market, SHS.
Supplies Yingli PV
modules (was
Shell/Solarworld
distributor). BatteriesYuasa (Japan), CCSundaya (Indonesia),
DC lights-Sundaya
(Indonesia), Modulevariety
Norman
Chege,
Manager,
Solar Dept.
solar@dayliff.com
norman@dayliff.com
Work: 254 20 558335
Mobile: 0722 781081
Sollatek
Kenyan-Owned
Franchise of Sollatek
UK. Franchise in
Tanzania, agents in
Uganda and region.
Modules,
lamps, charge
controllers.
Wholesaler. Operates
through agents in Kenya,
Tanzania, and Uganda.
Sollatek BOS,
modules from US.
Chris Soper
Director
chris.soper@sollatek.co.
ke
041 5486250/1/2/3
Kenital
Kenyan-owned PV and
remote power company.
Solar company
established in 1989.
Was market leader
2000-2005.
Sell power protection
and solar-related
products. 50% of
business is PV. Have 4
branches and 15
dealers. Do both
wholesale and retail
through their branches.
Have several branches.
Sell system packages
and components from
Nairobi office. Use
media to sell product.
100% PV and back-up
power systems.
Institutional, telecomm.
E-solar brand.
Recent company
changes have
affected partnerships.
Mark Kitute
Marketing
Director
solar@kenital.com
254 20 2715960
Power Technics
Incorporated in 1982.
Electrical engineering
technology providers
All PV
components,
batteries.
Inverter
battery backups, pumps.
Solar water
heaters. Wind
generators.
BOS
component,
electrical
control
panels, PV
modules and
energy saving
lights
Very new the PV market
Supplies Sharp PV
modules and
Schindler BOS
components (
Germany)
Kamal
Gupta
Head Sustainable
Energy
Division
kamal_gupta@powertec
hnics.com
+ 254 (0) 703 069 000
Integrated solution
provider of electrical
engineering technology,
superior sheet metal
engineering technology,
automation and
systems designs.
59
Telesales
Kenyan-owned family
business. Several
shops in Nairobi.
Oldest PV seller in
country (since 1985).
Appliance and solar PV
company. Sell over the
counter and packed
systems mostly to the
SHS market. Have
agents they distribute
through.
Supplies Premeir solar
products and has two
outlets in Nairobi
All PV
components,
batteries.
Inverter
battery backups, pumps.
Institutional market and
small commercial system
market.
Modules: Kyocera.
Regulators: Steca.
Various BOS
Enos Otieno
Sales
Executive
enosotieno@gmail.com
(020) 213143
Asachi
PV wholesaler
All PV
components.
Inverter
battery backups, pumps.
Solar water
heaters.
Retail, institutions and
corporates market.
India
Johannes
Oos
Technical
Director
johannes.oos@asachipo
wertech.com
+254 (0) 732 969 651
PowerPoint
Solar system integrator
and component supplier
Supplies solar systems
components and
undertakes system
installation. Focuses on
Government contracts.
Retail, institutions,
corporate and government
/REA projects.
Canadian solar
Modules, Outback,
Xantrex inverters (
USA), SMA inverters
( Germany),Lorentz
water pumps (
Germany)
Cosmos
Musyoki k.
Managing
Director
musyoki@powerpoint,co,
ke
+ 254 (0) 0723 555666,
0722 463965
Digitel
Telecomm firm
established by exWilken MD. >10 years
in business.
Supplies Edwards SWH
systems to corporate
(hotel) clients.
All PV
components.
Inverters,
battery backups, lanterns,
Solar water
heaters,
power
generators
and small
wind turbines
Solar water
heaters.
Institutional, tourism
Australian SWH
N/A
N/A
Wilken
Telecomm firm that
does some SWH and
PV business.
Established > 20 years
Supplies Solahart
(Australia). Works in
commercial hotel
market and HH market.
Solar water
heaters,
some PV
Institutional, tourism
Australian SWH,
Japan Modules
N/A
N/A
solar@wilken.co.ke
+254 (0) 722 851 856,
+254 (0)733 637 559
60
Specialized & Smaller Players (Large Systems, Mini-Grids, PV Services)
Azimuth Power
Grid Connected PV Uses German PV and
PV components and
installer
SMA inverters for
inverters
system installation
Institutional market and
agro industries.
Germany
Generic Energy
Incorporated in
2010 . Power back
providers.
Supplies power backup systems, solar
lighting and solar water
heaters
All PV components.
Inverters, battery
back-ups, lights,
electronic timers.
Solar water heaters.
Retail market and
Corporates
Supplies Canadian
solar Modules,
Outback and Xantrex
inverters ( USA),
Sollatek BOS (
UK),Gaston batteries
( Hong Kong)
System components
from Turkey and
Germany.
Harmonic Systems
Solar energy
systems integrators
Supplies solar systems
components and
undertakes system
installations.
All PV components.
Inverters, battery
back-ups, lights, .
Solar water heaters.
Retail, institutions and
corporates.
Daima Energy Services
Ltd
Subsidiary of
Daima Energy
Solutions UK
All PV components.
Inverters, batteries
and lanterns.
Retail and institutions.
N/A
Solar World EA.
Solar energy
systems integrators
Offering reliable and
affordable PV Solar
Systems for off-grid
domestic and
commercial
applications.
Provide solar water
heaters and off grid
solar water pumping
solutions.
Solar water heaters
and solar water
pumping equipment
Retail market, NGOs and
institutions.
Solar world water
heaters, Loretz water
pumps and PV
modules ( Israel)
61
Guy
Lawrence,
MD
Managing
Diretor
Jimmy Njai
Marketing
and Sales
Executive
gl@azimuthpower.com
+ 254 (0) 20260 3336
(Kenya)
sales@genericenergylrd.
co.ke
+ 254 (0)727 572 186
Mark
Muinde
Chief
Executive
Officer
N/A
N/A
mark@harmonicafrica.co
m
+ 254 (0)711 590 990
Charles
Rioba
Chief
Executive
Officer
solar@wananchi.com
+254 (0) 722 798 000
N/A
N/A
Suntech Power Ltd
Subsidiary
ofSuntech Power
international,
established in
2008. Suntech PV
Module wholesaler
RIWIK East Africa
is subsidiary of
RIWIK Wind
Energy B.V.It is
was established in
2012 and is a solar
energy systems
integrator
Subsidiary of
Barefoot Power
Supplies Suntech PV
modules and water
heaters,
All PV components.
Inverters, battery
back-ups, lights and
Solar water heaters.
Retail market and
institutions.
Supplies Suntech PV
modules ( China),
outback and Xantex
inverters (USA)
N/A
N/A
N/A
v
Supplies solar systems
components and
undertakes system
installation
All PV components.
Inverters, battery
back-ups, lights and
small wind turbines
Retail market and
institutions.
Supplies Canadian
solar Modules,
Outback and Xantrex
inverters ( USA),
Sollatek BOS
UK),Trojan batteries (
USA)
Bart Fugers
Chief
Executive
Officer
info@riwikeastafrica.com
+254 (0) 7217 639 088
Suppliers of solar
lanterns, Pico solar
and Solar home
systems
Barefoot power solar
lanterns, Pico
systems and Solar
home systems.
Small scale retail market
Barefoot
(Netherlands)
N/A
N/A
N/A
254 (0) 020 252 115, 254
(0) 728 255 807 ,254 (0)
733 822 988
Solar Works EA
Solar energy
systems integrators
and component
suppliers
Supplies solar systems
components and
provides system
installation
All PV components.
Inverters, batteries
and BOS. SMA
inverters
Retail, institutions and
corporates market.
SMA, Energibau
George
Weru Muturi
Operations
Director
gweru@solarworksealtd.
co.ke
+254 (0) 724 919 571
Dreampower Ricciardi
Engineering & Consulting
S.R.L Limited
Subsidiary of
Dreampower Italy.
Solar PV
components
supplier and
system integrator
Wholesaler Supplier,
Retail sales and
importer of solar PV
components
All PV components.
Inverters, battery
back-ups, LED lights
and wind turbines
Retail, institutions,
corporates and supplier to
other PV companies.
Rita
Ricciardi
Managing
Diretor
info@dp.co.ke,
r.ricciradi@dp.co.ke
+ 254 (0) 722 377 771
SolarKiosk
Social enterprise
and a subsidiary of
SolarKiosk
Germany
Supplies solar kiosks
for off grid market
areas
Solar Kiosks and
Pico solar systems
Small scale retail market
PV modules (Spain),
Victron inverters (
Netherlands), SMA
inverters ( Germany),
Sundazer fridges (
USA) and LEDs
(Italy)
Kiosks ( Germany),
Pico systems N/A
Rachna
Patel
Managing
Diretor
rachna.patel@solarkiosk.
eu
+254712525750
RIWIK
Smart Solar (K) Ltd
62
Go Solar
Solar system
integrator and
component supplier
Supplies solar systems
components and
undertakes system
installation.
All PV components.
Inverters, battery
back-ups, lanterns,
Solar water heaters,
solar water pumps
and small wind
turbines
Small scale retail market
and institutions
Canadian solar
Modules, Outback
and Xantrex inverters
( USA)
N/A
N/A
N/A
+ 254 (0) 020 552 215
Integrator and
installer of PV
systems
Works with larger
players to complete
installations in the field
All PV components.
Inverters, battery
back-ups and small
wind turbines
Service and retailer
N/A
Chris Kimani
Operations
Manager
Turnkey project
developers.
Founded in 2011
Energy economization
company with major
focus on solar based
energy production with
financial planning.
Modularized solar
power plants Battery
backup solutions
Energy efficiency
upgrades Energy
surveillance
Small scale retail market
and institutions
N/A
N/A
N/A
E-mail:
suncatchengineering@g
mail.com
Mobile: +254 722
350072
post@resolar.co.ke
(+254) (0) 707 890 804
(+254) (0) 705 185 795
Ambalian Company Ltd
Supplier of wind
measuring
equipment and
solar system
integrator
Being a provider of
renewable energy
solutions for industry
and homes.
Wind measurement
equipment. Solar
Water heater (SWH).
Solar & Home Power
systems (S&HP).
Solar & LED lighting
(SLL). Water
Pumping & Solar
(WP&S). Solar
Powered Security
Retail and industry
USA, Germany, Italy
N/A
N/A
akmurunga@ambalian.c
om
+254 (0) 722 806 752
Ecosolar Option Ltd
Established in
1999, offer energy
consulting services
and are solar- wind
system integrators
Providing specialized
tailored energy
solutions
Solar systems,
power back-ups,
generators, wind
turbines, solar water
heaters and solar
water pumping.
NGOs and institutions
Europe, USA and
Israel
N/A
N/A
N/A
N/A
SunCatch
ReSolar
63
Think Solar Technics Ltd
System integrators
and component
suppliers
Providing specialized
tailored energy
solutions
All PV components.
Inverters, battery
back-ups ,solar
fridges , water
pumps and small
wind turbines
NGOs, institutions and
tourism
Europe and USA
N/A
N/A
N/A
(+254) 020 3567916
(+254) 0720464715
(+254) 0721288339
(+254) 0721864562
BBOXX Kenya
Franchise branch of
BBOXX
international
Supplier of integrated
system kits
Solar PV kits
between 20W to
1kWp
Off-grid clients. NGOS
China
Aditi Patel
Operations
Director
info@bboxx.co.ke
254 789 843 201
Solar and wind system
integrator and
component supplier
All PV and Wind
components.
Inverters, battery
back-ups and small
wind turbines
Small scale retail market
and institutions
Canadian solar
Modules, Outback
and Xantrex inverters
( USA)
Sam
Slaughter
Chief
Executive
Director
sam@windgenpower.co,
Small-Sale Wind Installers
Windgen/ PowerGen
Solar and wind
system integrator
and component
supplier
CraftSkills
Solar and wind
system integrator
and component
supplier
Solar and wind system
integrator and
component supplier
All Wind
components.
Inverters, battery
back-ups and small
wind turbines
Small scale retail market
and institutions
Local manufacture of
turbines
Simon
Mwacharo
Chief
Executive
Director
simon@craftskillseastafri
ca.com
+ 254 (0) 724 324 273
WinAfrique.
Specialist systems
integrator company
focused on large
projects and telecom
sector.
Actively seeking to
install back-up and
hybrid solutions for
Safaricom and other
players. Installed $1M
worth of PV in 2008
Wind & solar hybrid
systems.
Niche market in supply of
large systems for
communication sector
N/A
Antony
Ngeno
Managing
Director
kan@winafrique.com
+254-(0) 0204453898/949 ,+254-(0)
020 4453949
Project development,
consulting, off-grid
system design, energy
audits, market study
Specifying off-grid
PV systems
N/A
N/A
Mark
Hankins
Chief
Executive
Officer
info@africansolardesign
s.com
254 20 7125694
Consultants & NGOs
African Solar Designs
Consultant
64
CAMCO
Consultant
Training, project
support, carbon trading
(have conducted
numerous PV trainings
in Kenya and region
and managed UNEP
regional PV project)
Project management
(Managed $5M PVMTI
project on behalf of
IFC-GEF)
Consulting
Renewable energies
project development
N/A
Stephen
Mutimba
Consultant
smutimba@camcoglobal
.com
Work: 3871027
/3877942/ 3875902
Integral Consulting & Advisory
Services Ltd
Consultant
Consulting
N/A
N/A
Ashington
Ngigi
Consultant
ashington@integraladvisory.com
254 (20) 3754853 / 6
Kenya Renewable Energy
Association
RE
Association
Organizes trainings,
conducts industry
outreach
Representation of
the Renewable
energy sector in
Kenya
N/A
N/A
Charles
Muchunku
Chairman
chairman@kerea.org
+254 724 279972, 723
885135, 735 527041
Solar Aid
NGO (Private
company
Sunny
Money)
Involved in rural PV
projects
Procures PV
systems for rural HH
and institutions
$100's of k
Assembling small PV
kits for rural people,
installing systems in
schools
john@solar-aid.org
+254 717446158
S3C
Social ( NGO)
Enterprise
Supplies solar
lanterns, solar home
systems and
institutional systems
for schools
All PV components.
Inverters, batteries
and lanterns.
Retail and institutions.
SNV
Consultant
Working on ENDEV
PV projects (pico
solar)
Providing Advisory
Services and
development of
policy.
Providing investments
supplies Waka Waka
laterns ,Victron
Inverters
(Netherlands) and
Ubbink solar Modules
(Kenya)
N/A
John Keane,
Head of
Programmes
Head of
programmes
Jeroen Pool
Chief
Executive
Officer
N/A
N/A
kenya@snvworld.org
+254 724 463355
Carbon Africa
Consultant
Major focus on Carbon
emissions and
renewable energies
Consulting
N/A
N/A
Matthew
Woods
Director
matt@carbonafrica.co.k
e
+254 731 851 754
65
jeroen.pool@solars3c.co
m
+ 254 (0)703 497 237
Donors, Multilaterals
KfW
GIZ
German
Development
Bank
German
International
Cooperation
Multilateral
UNITED NATIONS
INDUSTRIAL DEVELOPMENT
ORGANIZATION - UNIDO
UNHABITAT United Nations
Human Settlements
Programme
Multilateral
UNDP
Multilateral
Bilateral Aid
Agency
Agence Française de
Développement AFD
Supporting the
installation of hybrid
mini-grids in the
greefield
Anthony
Karembu
Supporting the
installation of hybrid
mini-grids in the
greefield
Active solar projects in
Kenya --collaborations with
Indian companies
Reimund
Hoffmann
Reimund.hoffmann@giz.
de
+254 722803882
p.njuguna@unido.org
+254 722 486879
Anthony.karembu@kfw.
de
+254 722880 551
Promoting industrial
development for
poverty reduction
Implementing solar PV
projects
Tender procurement
Paul
Njuguna
N/A
Promoting socially and
environmentally
sustainable towns and
cities with the goal of
providing adequate
shelter for all.
N/A
Promoting the use of
Renewable energies in
Urban Areas.
Tender procurement
Building nations that
can withstand crisis,
and drive and sustain
the kind of growth that
improves the quality of
life for everyone
Promoting strong and
sustainable growth
through proving
support to the energy,
water, sanitation and
transport sector with
the help of the private
sector.
N/A
Solar Application for
improved energy and
security
Tender procurement
Vincent N.
Kitio
Chief, Urban
Energy unit,
Urban Basic
Services
branch
Mary Okello
Procurement
Associate
Financial Aid
N/A
Improvement of
infrastructures, in
particular in the energy
and transport sector;
66
Yves
Terracol
Manager
Vincent.Kitio@unhabitat.
org
+254 (0) 706 044 004
mary.okello@undp.org
afdnairobi@afd.fr
+254 20 271 84 52/7
Bilateral Aid
Agency
Danish International
Development Assistance.
DANIDA
Multilateral
International Finance
Corporation - IFC
Bilateral Aid
Agency
SIDA - Swedish Agency for
International Development
Cooperation
Bilateral
USAID
It is responsible of
administrating all
Danish bilateral
development
assistance
Financial Aid
It supports private
sector development
through investments
and advisory
programmes
Administers part of the
Swedish Government
development aid.
Launched Power
Africa program
Projects/Investors in Renewable Energy Sector
ResponsAbility
Investor
Equity Fund being
focused on
launched
BOP and
renewable
energy
African Enterprise Challenge
Private
Encouraging private
Fund
sector-based
sector companies to
support group compete for
that manages
investments for their
grant
new and innovative
competitions
business ideas.
investments
to support
donor
Funding of projects aimed
at reducing the effects of
climate change and
providing support to the
private sector
NIA
Financial Aid and
Advisory services
Infrastructure
development
N/A
Financial Aid and
Advisory services
Providing support for
democracy and human
rights, environment and
climate change and
gender equality and
women’s' role.
N/A
N/A
N/A
sida@sida.se
Financial Aid
Providing power to 20
million homes in Africa
N/A
N/A
N/A
usaidke@usaid.gov
254-20-862-2000
Financing
N/A
N/A
Brian Kelly
Renewable
Energy
Financing
Through the challenge
fund it provides
investments for renewable
energy technologies
67
N/A
Joe Okudo
Programme
Manager , B
usiness Sect
or
Programme
Oumar
Seydi
Director
Anjali Saini
Africa
Project
Manager
nboamb@um.dk
+254 20
4253299/2195096
+254 20 275-9000
brian.kelly@resposAbilit
y.com
+254 (0) 731 094 778
anjali.saini@aecf.africa.o
rg
+ 254 (0) 733750553
objectives
Commercial
energy
efficiency and
renewable
investment
support
program
KAM is a
representative
organization of
manufacturing value
added industries in
Kenya. It acts as a link
between the
manufacturing industry
and the Government
Financing
Providing loans at lower
interest rates for the
adoption of renewables by
the manufacturing sector
N/A
CFC Stanbic Bank
Financial
institution
working with
KAM RETAP
Financial services for
institutions
Financing
Providing loans at lower
interest rates for the
adoption of renewables by
the manufacturing sector
N/A
CO- operative bank of Kenya
Financial
institution
working with
KAM RETAP
Provides Financial
services for the
cooperative sector in
Kenya and south
Sudan
Financing
Providing loans at lower
interest rates for the
adoption of renewables by
the manufacturing sector
Global Village Energy Program
World Bank
NGO
supported
energy
access
projects
NGO that works to
increase access to the
modern energy and
reduce poverty in
developing countries
Financing and
Advisory services
It helps in establishing and
growth of small energy
businesses.
KAM RETAP
68
Pascal
Habay
Team
Leader- RTA
Programme
for financing
Renewable
Energy &
Energy
Efficiency
Felix
Gichanga
N/A
pascal.habay@kam.co.k
e
+254 (0) 722 201368,
+254 (0) 706 612384
,+254 (0) 734 646005
N/A
Reuben
Kipkurui
N/A
Rkipkururi@coopbank.co.ke
+254 722 783 249
N/A
James
Wakaba
Regional
Manager
james.wakaba@gvepint
ernational.org
+254 722 945047
Felix.Gichanga@stanbic.
com
N/A
Climate Investment Center
IFC program
supporting
start-up green
companies in
Kenya
It is to provide a
country-driven
approach to climate
change and directly
support the
government of Kenya’s
objectives in the
Greening Kenya
Initiative and Vision
2030.
Financing and
business advisory
services to enable
domestic industry
and SMEs to proactively and
profitably develop
innovative climate
technology
(cleantech) solutions
that meet local
needs.
N/A
N/A
N/A
N/A
Managing rural
electrification projects.
On & off-grid.
Relatively new agency
with little solar
experience.
Energy policy
Future procurer of
off-grid institutional
RE systems
To be decided
MoE PV system
procurements to be
handled by REA
James
Murithi,
Renewable
Energy
department
Procurer of energy
PV systems
Has procured >8M$ of PV
equipment over 5 years
See above
Energy regulations,
pricing
None
None
Interested in PV grid
tied work
Eng. Isaac
Kiva.
Director RE
Dept.
Renewable
Energy
department
Pavel R.
Oimeke
Director,Ren
ewable
Energy
N/A
+254 (0)703 034 000
Government and Public Sector Projects
Rural Electrification Authority
Government
rural energy
agency
Ministry of Energy
Government
energy
ministry
Energy Regulatory
Commission
Government
energy
regulator
69
0725 607728
dre@energymin.go.ke,
ps@energymin.go.ke
+254-20-330048, +25420-250680
robert.pavel@erc.go.ke
+254 722 200 947
Green Buildings - Selected Players
Pharos Architects
Urko Sanchez Architects
Actis
Specializes in
LEEDcertified
buildings
Mombasabased
architect
specializes in
buildings that
are energy
efficient and
traditionallydesigns
Investor/devel
oper
designing
Thika
development
Has designed and built
LEED buildings that
incorporate solar PV
on and off-grid in
Kenya and Southern
Sudan
Collaborated on SOS
Djibouti buildings that
require specialized
cooling features
Architect
The Thika Road
project is advertised to
incorporate green
technologies and
energy generation
Developer
Planning Systems Services
Urko
Sanchez
Chief
Executive
Officer
urko@urkosanchez.com
+ 254 (0) 721243387
Michael
Turner
Director,
East Africa
Office
Izael Pereira
da Silva
Deputy ViceChancellor
(Academic
Affairs)
Kunal Patel
Director
info@act.is;
mturner@act.is
+254 (0) 20 2219 952
Trevor
Andrews
Managing
Director
Trevor.Andrews@planni
ng-kenya.com
Mobile: +254 724
255088
N/A
Architect
University
Local
university with
stong
business
school
Major
architect
interested in
green
buildings in
general
Major
architect
interested in
green
andy@pharosarchitects.
com
+254 720 203 030
N/A
Strathmore UniversityPhase III
Belglin Woods
Has worked with ASD &
German companies on
several design projects
Andrew
Gremly
Managing
Director
N/A
Germany
Project using German
technology
Incorporating 500 kWp
PV system into the
campus
Architect
N/A
N/A
N/A
Architect
N/A
idasilva@strathmore.edu
Mobile: +254 733
900400
info@beglinwoods.com,
kunal@beglinwoods.com
254 722 201 185
N/A
N/A
70
buildings in
general
Kenya Green Building council
LEED
registered
architect
starting up a
Kenya green
building group
Architect
Mugure
Mbugua
Member
info@kenyagbc.or.ke
N/A
Beatrice Ngugi
bngugi@ktdateas.com
Electrical
Engineer
KTDA Power
Lucas G.
Maina- GM
Francis W.
Miano
254 - 020 3227000
Jane Ngige
CEO
kfc@wananchi.com
info@kenyaflowercouncil
.org
0720692477
0733639523
020-2679268
Uhuru Flowers Ltd
Ivan Freeman
P.J Dave Flowers Group
Hitesh p. Dave
ivan@uhuruflowers.co.ke
0713889574
0722863252
davephitesh@gmail.com
marketing@pjdave.com
0732205577
0787635491
N/A
N/A
N/A
Agricultural Sector - Selected Players
KTDA Power company ltd
Kenya Flower Council
Reducing the
Energy costs
in The Tea
industry
Running of the
hydropower plants of
KTDA
Aim of fostering
responsible and safe
production of cut
flowers in Kenya with
due consideration of
workers welfare and
protection of the
environment.
Clean and Cheap
Energy
N/A
N/A
Conducting a feasibility
study on the utilization of
Solar for the Tea Industry
N/A
N/A
71
igmaina@ktdateas.com
0721620981
fmiano@ktdateas.com
0722483133
Zena Roses Ltd
Rakesh M.
Kuttaiah
G.Manager
Wilmar Agro ltd
Wilfred M.
kimani
Executive
Director
N/A
N/A
N/A
Kenya Dairy Processors
Association
Horticultural Crops
Development Authority
N/A
N/A
Dr. Alfred
Serem
Managing
Director
Anne Gikonyo
G.M- Marketing
Kenya Horticulture Council
Enhancing
effectiveness and
efficiency in resource
utilization and service
delivery to the
horticulture industry.
N/A
N/A
N/A
N/A
N/A
rekesh@zenaroses.co.k
e
0721452593
0724631299
kamami@wilmar.co.ke
N/A
N/A
md@hcda.or.ke
020-2131561,2088469
awgikonyo@hcda.or.ke
marketing@hcda.or.ke
020-3597362,2131560
info@fpeak.org
+254-726-949695
Telecom
Safaricom
Airtel
leading
Telecom
Company in
Kenya
Second
leading
Telecom
company in
Kenya
Providing mobile, fixed
voice and data
services on a variety
of platforms
Providing mobile, fixed
voice and data
services
mobile services and
mobile money
transfer facilities
Has about over 50 green
telecom sites
N/A
N/A
N/A
Mobile services
N/A
N/A
N/A
N/A
mobileoffice@safaricom.
co.ke
+254 722 003272
info.africa@airtel.com
72
GSMA
Association of
mobile
operators
Broadband Communication
Network Ltd
Telecommuni
cation
Solution
Provider
Distributed Communication Ltd
Telecommuni
cation tower
construction
company.
It is tasked with
supporting the
standardizing,
deployment and
promotion of the GSM
mobile telephone
systems
Designing,
implementing and
commissioning of
various types of
telecommunication
products
Construction of
telecommunication
base stations
Financing and
advisory services
Green power for mobiles
N/A
Ilana Cohen
African
Project
Manager
icohen@gsma.com
+254 (0)705 949 276
Telecommunication
equipment
Solar systems for towers
N/A
Bernard
Wahome
CEO
bernardwahome@broad
com.co.ke
+254 20 374 6669
Telecommunication
equipment
N/A
N/A
Simon
Horner
CEO
simon@systems.co.ke
N/A
Called for a proposal
for Mechanism
partners for specific
sustainable tourism
activities.
N/A
N/A
N/A
N/A
info@tourismfund.co.ke
+ 254 (0) 02
2714900/274806
To be the preferred
hospitality company,
in the ownership and
management of
hotels, resorts and
lodges in the key
markets of Africa."
Providing
unprecedented luxury
Hospitality Services
N/A
Mr. Nelson
Mburu
N/A
thestanley@sarovahotel
s.com ,:
nelson.mburu@sarovaho
tels.com
+254 20 275
7000/316377
N/A
Mr. Harrison
Tuva
N/A
nairobi@serena.co.ke
254-20-2710511
Tourism
Tourism Fund
Donor supported group
for tourism projects
Sarova Hotels
Pan Afrique, Mara Sarova
Serena Hotel
Nairobi Serana Hotel,
Mara Serena, Amboseli
Serena,Samburu Serena,
Serena Mountain lodge
Hospitality Services
Has begun promoting
sustainable development
in the tourism sector
Installed solar thermal
heating for their Panafric
hotel
N/A
73
Tamarind Hotels
Karen
Mombasa, Village Mkt,
Carnivore, Golden key
Casino.
Sopa/Elewana
FairMont
Atua- Enkop Africa
Sand River Mara
Cycrochic - Diani
Serengeti Pioneer camp Tz
Norfork Hotel- Nairobi
Fairmont Mara Safari
Club
Mt Kenya Safari Club
Elephant Bedroom
Camp,Mbweha Camp,
Tipilikwani and Mara
Ngenche Safari Camp.
To be elegant, exotic
and vibrant
Hospitality Services
N/A
N/A
N/A
N/A
tamarind@tamarind.co.k
e
+ 254 (0) 713 824835/6
To provide close
access to all the
drama and spectacle
of African wildlife in
exceptional comfort.
Hospitality Services
Shown an interest in going
green
N/A
Mike
Sanders
CEO
msanders@elewana.co
m
+255 27 250 0630 / 9
To provide extra
ordinary stay and
experience
Hospitality Services
N/A
N/A
N/A
Unique African safari's
Hospitality Services
N/A
N/A
N/A
N/A
N/A
kenya.reservations@fair
mont.com
+254 (62) 20 31300
marketing@atuaenkop.com
+254 715 555 322
Mada Chain of
Hotels
Tipilikwani mara camp
Mara ngenche safari
camp -mara
Mbweha camp- Nakuru
Elpehant Bedroom camp
-Samburu
To be leading African
hospitality provider
Hospitality Services
N/A
N/A
N/A
N/A
madahold@kenyaweb.co
m
+254 020 6005072
Severine Lodge
Mombasa
German hotel interested
in solar.
Severin Sea Lodge
Tsavo Properties
To provide one of a
kind travel experience
Hospitality Services
Previously shown interest
in adopting the use of
renewable energies
N/A
N/A
N/A
severin@severinsealodg
e.com
+254 41 2111800/10
Base Camp
Nairobi
Eagle View lodge
Base Camp Talek
Germany
Lars
Chief
Executive
Officer
lars@basecampfoundati
on.org
+254 (20) 2345343
Hospitality Services
To have the best Ecotourism lodges in
Africa
Company has invested in
12kWp SMA mini-grid
from German supplier
74
Neptunes
Ukunda
Neptune Palm Beach
B,R& spa
Neptune Village Beach
R& Spa
Neptune Pwani Beach R
& Spa
Explorean Ngorongoro
Lodge
To provide the highest
standard of service for
total customer
satisfaction.
Hospitality Services
N/A
N/A
Michel
vandenbuss
che
International
sales and
Marketing
office
info@neptunehotels.com
,
michel.vandenbussche@
neptunehotels.com
+254 40 320 2213
Laikipia Wildlife
Forum
Networking group for
lodges, communities and
camps in the largest
tourism area in Kenya
Hospitality Services
Promoting the use of solar
powered pumps for
irrigation
N/A
N/A
N/A
communications@laikipi
a.org
+ 254 (0) 726 500260,
Ecotourism
Association of
Kenya
Promotes responsible
tourism activities in the
tourism industry
Hospitality Services
Promoting and
Acknowledging
Ecotourism sites
N/A
N/A
N/A
info@ecotourismkenya.o
rg
+ 254 726 366 080
Sentrim Hotels &
Lodges
680 Hotel, Boulevard,
Castle Royal, Amboseli,
Tsavo East, Masai Mara,
Samburu and Lake
Elementaita
To see a healthy and
productive natural
environment for
people and wildlife for
the future of Laikipia &
Kenya.
Community training in
the tourism area and
rating of tourism
facilities in terms of
being eco-friendly and
sustainable
To provide excellent
service.
N/A
Rahni Shah
Director
info@sentrim-hotels.com
+254 720 516 488
Hospitality Services
75
Annex 2: Bibliography and Resources
1) ESD. “Kenya Energy Atlas, Energy for Sustainable Development Africa,
2008.”
2) ERC. “The Energy (Solar Water Heating) Regulation, 2012.” Legal Notice
No.43. 25th May 2012.
3) ERC. “The Energy (Energy Management) Regulation, 2012.” Legal Notice
No.10. 28th Sept. 2012.
4) ERC. “The Energy (Solar Photovoltaic System) Regulation, 2012.” Legal
Notice No.103. 28th Sept. 2012.
5) ERC. “Application to Energy Regulatory Commission (ERC) for Approval of
Proposed Electricity Tariffs and Tariff Structure.” Daily Nation 21st Feb.
2013: 38-39.
6) KPLC. “Annual Report and Financial Statements 2011/2012.” 30th June
2012.
7) Ministry of Energy. “The Energy Act, 2006”
8) Ministry of Energy. “National Energy Policy-Third Draft-May 11 2012”
9) Ministry of Energy Scaling Renewable Energies Project. “Project
Document for Mini- Grids Development in Kenya.” Government of Kenya
10th Apr. 2013.
10) REA. “Rural Electrification Master Plan (REM).” August 2008: vol 1.
11) [Waiguru, Anne. “Economic Survey 3013 Highlights, Kenya National
Bureau of Statistics, 2013.”
12) http://www.capitalfm.co.ke/business/2013/06/kam-pushes-for-moregreen-energy/
13) Ministry of Energy. “Feed –in-Tariffs Policy for Wind,Biomass,Small
Hydro,Geothermal,Biogas and Solar.”Dec.2012: 2nd rev.
14) KPLC. “Standardised PPA for Small Renewable Energy Generators( Less
than and including 10 MW)”
15) Ministry of Energy. “Connection Guidelines for Small Scale Renewable
Generating Plant.” Dec 2012
16) Ministry of Energy. “Feed –in-Tariffs Policy for Wind,Biomass,Small
Hydro,Geothermal,Biogas and Solar.”Jan.2010: 1st rev.
17) Economic Consulting Associates/Ramboll. Technical and Economic Study
for Development of Small Scale Grid Connected Renewable Energy in
Kenya Draft Final Report Submitted to the Ministry of Energy through the
Energy Regulatory Commission. June 2012
Mini-grid Presentations
*1+Concellon,Maitane. “ AFD Programmatic Support On Mini- Grids in Kenya.”
*2+Kiva, Isaac. “Government of Kenya Priorities/Programmes in Mini- Grids in
Kenya.”
*3+Motohashi, Mits. “SREP Mini -Grids Programme.”
*4+Hunt, Steven. “Green Mini -grids Programme-Key Objectives and Design Process.”
*5+Meassick, Mark. “USAID Initiative on Mini -Grids and Renewable Energy.”
76
Webpages/Press releases:
[1] http://www.kplc.co.ke/index.php?id=44, Power interruptions, KPLC
[2] http://www.kam.co.ke/index.php
[3] http://www.businessdailyafrica.com/Lamu-wind-farm-gets-IFC-backing//539552/1872298/-/122mjcs/-/index.html
[4] http://www.kengen.co.ke/index.php?page=business&subpage=wind&id=1
[5] http://www.gsma.com/.../wp.../GSM_Vendor_Landscape_EastAfrica_V5.pdf
[6] http://www.gsma.com/.../wp-content/.../GPM-Market-Analysis-East-Africav3.pdf
77