The Sun Rises in the East (of Africa): The Development and Status of the Solar Energy Markets in Kenya and Tanzania
Abstract
Africa, probably more than any other continent, faces the double challenges of improving the living conditions of its population by sharply increasing energy access, while at the same time developing its energy sector in a way that is sustainable. The East African nations of Kenya and Tanzania are two examples of countries that face these challenges most acutely: Both countries have quickly growing populations and rising prosperity that lead to increased energy demand. Yet in both countries the electrification rates are among the lowest in the world, with 14% and 11% respectively in 2005 (IEA, 2006). At the same time, both Kenya and Tanzania continue to rely heavily on traditional biomass for most of their primary energy needs, while undergoing structural changes in power sectors that used to be dominated by clean and abundant hydro power as the primary source of electricity. The two countries therefore serve as good examples for economies that face the energy challenge and where solar energy, already exploited since the 1970s, might be part of the solution. This paper (which is based on Ondraczek, 2011) combines data and information from a broad range of sources to give an overview of the historical development and current status of the solar energy markets in Kenya and Tanzania. The paper is based on an extensive literature survey that takes account of academic as well as 'grey' literature. The literature review has been complemented by 25 personal in-depth interviews with leading experts on the East African solar energy market that were conducted in September 2010 (cf. Ondraczek, 2011, for further details). The paper provides a thorough overview that focuses on two of the biggest economies in the region, which are also two of its biggest markets for solar energy applications. Given the current market structure, the paper focuses on the market for off-grid solar photovoltaic (PV) systems, but also makes reference to other solar energy applications. The remainder of this paper is structured in the following way: Sections 2 and 3 present a concise overview of the development and current status of solar energy markets in Kenya and Tanzania, respectively, and section 4 provides a short summary and some concluding remarks.