Kenya:

Kenya Shifts Renewable Energy Funding (Thomson Reuters Foundation)

(Courtesy CIA.gov)

The recent announcement by the Kenya electricity generating company (Kengen) inviting bids for joint development of geothermal resources along the Kenyan Rift Valley marks a shift in funding for energy in the country.

It used to be that such projects were funded through development loans and grants from donor countries, often tying the funding with other issues such as good governance. This in many cases slowed down the expansion of the power sector because the government had to first pass muster on governance issues and donors could pull out of projects without notice.

The confidence that is being shown by investors now is perhaps an indication of growing economic interest in the region – and a much wider shift in funding. With its bid invitation, Kengen is breaking with the past by directly looking for commercial partners, even though the government still owns the majority of the geothermal effort.

Read More.....