Kenya's power sector continues to diversified its energy generation capability.
Over the longer term, the favoured form of renewable energy is geothermal, where potential is believed to be considerable.
Business Monitor International anticipates that Kenya's overall power generation will grow by an annual average of 11.15% between 2011 and 2016, to reach 11.77TWh. Driving this growth will be a 4.78% annual average increase in hydropower and a 28.02% annual average rise in the supply of renewables-based electricity.
- Kenya Electricity Generating Company's (KenGen) plans to build six new geothermal power plants are part of Kenya's bid to diversify its power mix away from costly thermal and unreliable hydropower. Nonetheless, we note that the US$12bn price tag associated with these relatively small projects is prohibitive, and we note that the company is likely to encounter difficulties in raising the financing required.
- Electricity feed-in tariffs (FiTs) in Kenya have boosted interest in renewable energy sources in the country. Kenya's FiTs guarantee the price paid for electricity from renewable sources, ensuring these technologies are cost competitive with more conventional power plants and encourage the development of renewables facilities in the country.