PAOP Kenya Market Assessment

The project is implemented by RTI International in collaboration with Fraym, Norton Rose Fulbright, Practical Action Consulting, and Tetra Tech. Power Africa is a public-private partnership comprising 12 U.S. Government agencies, over 145 private companies, and 18 bilateral and multilateral development partners. The program aims to achieve 30,000 megawatts of new generated power, create 60 million new connections, and reach 300 million Africans by 2030. In Kenya, the Power Africa Off-grid Project focuses on increasing access to electricity for underserved communities. The project provides support for 20 countries in Africa, including Kenya, and has a significant presence in the country. Kenya's energy sector overview highlights the country's progress in electrification. The grid electrification rate has increased, with 73% of the population having access to electricity. However, there are still significant challenges, including a large number of under-grid customers and a significant gap in energy access between urban and rural areas. The government has set ambitious targets to increase electrification rates, with a goal of achieving 100% access by 2022. The report highlights the potential of solar home systems (SHS) in Kenya. SHS are a popular off-grid solution, with GOGLA sales volumes increasing significantly in recent years. The market is expected to continue growing, driven by increasing demand for energy access and decreasing costs of solar technology. However, regulatory challenges, including quality assurance and unintended regulations, remain a significant barrier to growth. The report also examines the mini-grid sector in Kenya. Mini-grids are a promising solution for off-grid electrification, particularly in rural areas. The government has established several programs to support mini-grid development, including the Kenya Electrification Modernization Program (2015-2020) and the Green Mini-Grid Facility. However, financing remains a significant challenge, with a need for more developed supply chains and financing options. In addition to SHS and mini-grids, the report highlights the potential of productive use of energy (PUE) in Kenya. PUE refers to the use of energy for productive activities, such as agriculture, industry, and commerce. The report identifies several opportunities for PUE in Kenya, including solar water pumping, solar irrigation, and cold storage. However, challenges remain, including a need for more developed supply chains and financing options. Overall, the Power Africa Off-grid Project in Kenya aims to increase access to electricity for underserved communities. The project focuses on SHS, mini-grids, and PUE, and provides support for companies, investors, and governments to develop the off-grid energy market. The report highlights the potential of the market, but also identifies significant challenges that need to be addressed to achieve the project's goals.