• The report looks at evidence of the pace of growth in the clean energy transition
• It builds on several pieces of research on exponential systems change released by RMI, Systems Change Lab and others this year, which show that change is happening faster than we think
Image: George Murage
The private sector is putting massive amounts of money into renewable energy, a new report has shown.
An analysis by Zero Carbon Analytics shows that Kenya is among the beneficiaries of such investments.
The country gained an investment of $6.69 billion (Sh 1 trillion) towards renewable energy between 2010 and 2021.
“Trends in private energy investments on the continent are encouraging,” the report says.
During 2010–2020, 86 percent were directed at renewables in southern Africa, 82 percent in East Africa, and 67 per cent in North Africa.
Independent power producers are now one of the top sources of investment in Africa.
The report ‘Africa’s energy transition: solar and wind fuel energy security’ is the fourth in a series looking at evidence of the pace of growth in clean energy transition.
It builds on several pieces of research on exponential systems change released by RMI, Systems Change Lab and others this year, which show that change is happening faster than we think.
Kenya is ranked as the world’s eighth-largest producer of geothermal energy.
The country has even more geothermal capacity under construction than any other country in the world.
“Renewables have powered more than 80 per cent of electricity generation in Kenya since 2018, and this share reached 90 per cent in 2020,” the report says.
The renewable electricity sector in Kenya has grown substantially over the last few years, with a compound annual growth rate of 13.1 per cent from 2015 to 2020.
“Kenya will soon become the fourth-largest producer of geothermal energy. Geothermal energy currently accounts for 45 per cent of Kenya’s electricity generation.”
The report says there is a high level of investor interest in Kenya’s renewables sector, as showcased by several recent major developments.
These include an Australian-backed 300 MW geothermal and green fertiliser plant and a UK-backed 35 MW geothermal plant.
The report further says the country is committed to e-mobility and the phase-out of fossil-powered motorbikes.
“The country has set a target for 5 per cent of all newly registered vehicles to be electrified by 2025,” the report says.
It has partnered with Benin-based electric motorbike startup Spiro to roll out more than one million electric motorbikes in the country
Renewable energy capacity in Africa doubled between 2012 and 2022 to almost 59 GW, and wind capacity alone is expected to rise by more than 900 per cent based on announced projects to date.
The report highlights the potential scale of investment opportunities available in the continent’s renewable sector, despite yearly investments in fossil fuels between 2015 and 2022 doubling that of renewables.
This gap remains critical to the future of Africa’s energy.
Africa’s solar energy market, the fastest-growing renewable energy resource in Africa, accounted for 57 per cent of renewable investments between 2010 and 2021.
The use of stand-alone off-grid solar systems has improved access to electricity on the continent, growing at an annual rate of 62 per cent between 2009 and 2019.
Global Wind Energy Council official Wangari Muchiri says across Africa, the surge in renewable energy capacity, especially in wind and solar power, marks a transformative moment.
“From doubling renewable capacity to almost 59 GW in the last decade to the exponential rise in wind energy projections, the continent is witnessing an inspiring momentum towards a sustainable future. These investments not only address climate change but also present lucrative opportunities, with lower project default rates, fostering job creation and reducing dependence on volatile fossil fuel prices.”
Muchiri said they are excited by the trajectory in renewables.
It not only exemplifies Africa's commitment to combating climate change but also underlines the continent's potential to become a global leader in sustainable energy, he said.
This helps in "fostering economic growth, innovation, and energy independence for a billion people across the continent,” Muchiri said.
PowerShift Africa executive director Mohamed Adow says with its massive renewable energy resources, Africa has the potential to achieve not just energy security for itself and its people, but 100 per cent energy sovereignty.
“But it cannot do so on its own. Rather than pumping billions of dollars into fossil fuels for developed countries’ own short-term energy security, the developed world must instead turn these investments into renewables that will sustain Africa's development, while advancing global climate goals.”