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Tapping into Kenya’s clean energy market
Kenya has previously set 2020 as the year in which to produce all its energy through renewable resources, but how achievable is this target and where does the country currently stand? CNBC Africa's Arnold Kwizera spoke to Snehar Shah, General Manager of Azuri Technologies in East Africa of for more.
Wed, 04 Mar 2020 10:37:44 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Kenyan government's proactive support for the off-grid sector as part of their universal electrification strategy has significantly contributed to the sector's growth.
- Challenges such as the lack of access to local financing and currency funding hinder further expansion of off-grid solutions, making affordability a key concern in reaching underserved populations.
- Policy improvements, better tax incentives, and increased access to financing are essential to unlock the full potential of the off-grid solar sector and accelerate universal electrification in Kenya.
Kenya has been making strides in the clean energy market, particularly in the off-grid sector. The Kenyan government has set ambitious targets for renewable energy production, aiming to have all its energy come from renewable sources by 2020. The off-grid sector has witnessed significant growth in recent years, with the government actively supporting it as part of their universal electrification strategy. Snehar Shah, General Manager of Azuri Technologies in East Africa, highlighted the government's $50 million funding initiative in partnership with the World Bank to expand access to off-grid electricity in underserved regions. Currently, there are around two million homes benefiting from off-grid solutions, but there are still millions more that lack access, particularly in remote areas like the northern and northeastern parts of Kenya. This funding offers an opportunity for companies like Azuri to reach these hard-to-reach environments and contribute to Sustainable Development Goal (SDG) number seven, which focuses on electrification for all. Shah emphasized the importance of policy support and changes needed to further accelerate the off-grid solar sector's growth. While there are some favorable policy elements such as tax incentives for solar-powered equipment, there is still room for improvement. Shah highlighted the need for better tax incentives, access to local financing, and local currency funding to make off-grid solutions more affordable and accessible to a larger population. Despite facing challenges in securing local funding, companies like Azuri have leveraged various financing sources, including crowdfunding, to support their operations. The industry, valued at over 1.7 billion USD in Kenya alone, still has significant untapped potential, with millions of people in Africa lacking access to the grid. As the off-grid sector continues to expand, affordability remains a key issue, and Shah emphasized the importance of government support in addressing these financial barriers to accelerate universal electrification in Kenya.
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