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Kenya Green Manufacturing Policy and Investment Guide

Kenya's energy consumption is rapidly increasing, fueled by expanding energy access, industrialization, and growing demand. Kenya’s Energy Transition and Investment Plan, ratified in 2023, offers a pathway to achieve net zero by 2050 while meeting the country’s energy needs and balancing socio-economic development objectives. Local manufacturing and value chain development is a key opportunity for the government to maximize the socio- economic benefits of the energy transition - recognized in the draft National Energy Policy and E-mobility Policy.

This guide aims to provide industry, investors and other stakeholders a preliminary overview of the manufacturing policy and regulatory landscape in Kenya highlighting applicable laws, institutions and incentives available. It also highlights challenges and potential solutions to address bottlenecks facing local manufacturers in the solar PV, battery and electric mobility ecosystem.

 

Key highlights:

296 m

USD of imported Solar PV modules between 2020 and 2024

20x

growth in power demand by 2050

12

Special Economic Zones are currently gazetted with more in the pipeline

 

The guide forms part of a series of country-specific guides developed under the Africa Renewable Energy Manufacturing Initiative. Other countries covered in the series include Nigeria and Ghana

Country

Kenya

Ghana Green Manufacturing and Policy Guide

Ghana’s Energy Transition and Investment Plan (ETIP), launched in 2023, offers a pathway to achieve net zero by 2060 while meeting the country’s energy needs and balancing socio-economic development objectives.

To aid the private sector, investors, and other stakeholders in navigating the manufacturing policy and regulatory landscape in Ghana, this guide offers insights on two key areas:

  • Considerations for OEMs in establishing a renewable energy (RE) manufacturing company: applicable laws, processes and institutions to engage.
  • Overview of the domestic green manufacturing policy landscape: available incentives, stakeholders and governance.

 

Key highlights of a net-zero aligned pathway include:

90%

of 2060 abatement is driven by renewables, low-carbon hydrogen, battery EVs, and clean cookstoves, anchoring an orderly transition.

15x

growth in power demand by 2060, driven by economic expansion and electrification, with solar PV meeting most of it, reaching 150 GW.

90%

of vehicles in Ghana are electric by 2050, achieving full fossil fuel vehicle replacement by 2060.

400k

net new jobs by 2060, driven by rising energy investments and economic growth as part of a Net Zero scenario.

This guide is not designed to be an exhaustive resource but rather offers a preliminary understanding of the sector landscape. It forms part of a series of country-specific guides for each of Africa Renewable Energy Manufacturing Initiative’s (Africa REMI) focus countries.

The guide forms part of a series of country-specific guides developed under the Africa Renewable Energy Manufacturing Initiative. Other countries covered in the series include Nigeria and Kenya

Country

Ghana

Climate Finance for Powering Healthcare

 

Approximately 1 billion people around the world are served by healthcare facilities without reliable electricity access or with no electricity access at all. The electrification of such facilities is a crucial requirement for achieving universal health coverage. This report titled Climate Finance for Powering Healthcare examines how climate finance, such as grants, loans and investments to support the mitigation of greenhouse gas emissions and adaptation to climate impacts, can help power healthcare facilities with renewable energy, and climate-proof facilities with other low-carbon and resilient technologies.

The study aims to provide an introduction to climate finance for funders and practitioners involved in healthcare electrification efforts and a starting point to support national governments to access and effectively use climate finance to upgrade and climate-proof healthcare facilities. The study is part of SEforALL’s ongoing engagement with governments, funders, and the private sector to increase investment in powering healthcare as part of its wider commitment to tackling climate change.

Climate Finance for Powering Healthcare was developed by Sustainable Energy for All and Oxford Policy Management, with support from the Global Energy Alliance for People and Planet (GEAPP)https://tea.carbontrust.com/. This publication is currently one of very few resources that explore the potential of climate finance to climate-proof healthcare facilities. 

Promoting Energy-Efficient Lifestyles and Decision-Making

A compendium of case studies from G20 countries. 

This Compendium highlights how impactful messaging and compelling narratives can harness positive emotions to embrace energy-efficient lifestyles and inspire countries and organizations to raise ambition on energy efficiency. The Compendium is developed by the Bureau of Energy Efficiency, Ministry of Power, Government of India, in partnership with Sustainable Energy for All (SEforALL) and Mission Efficiency. 

Energy efficiency is a cornerstone of any effort to achieve climate, energy, and development goals. Whether at the country, enterprise, or household level, investing in energy efficiency can increase energy access, improve energy services, reduce dependence on fossil fuels, improve grid reliability, and accelerate the benefits of renewable energy.  Ultimately, energy efficiency can be a mass movement, bringing better lives for everyone. 

Around the world, there are millions of buildings, appliances, air conditioners, vehicles, and many other human-controlled technologies that we use every day. It thus takes millions of choices by individuals and businesses to put communities on an energy-efficient path. In India, the Lifestyle for Environment (LiFE) campaign launched by the government seeks to foster a collective shift away from detrimental consumption practices towards mindful resource utilization, recognizing energy efficiency as a key lever.  

Harnessing the power of emotions and positive experiences that motivate individuals, countries and businesses, can lead to major transformations. This Compendium shows how new, emotion-based narratives for energy efficiency can pivot on four pillars:

  1. Empowering people to take an active role in the solution;
  2. Fostering positive emotional connections to energy efficiency;
  3. Acknowledging and recognizing energy-efficiency champions; and
  4. Innovating communication channels to expand reach. 

Through case studies from G20 countries, this Compendium disseminates lessons learned in buildings and homes, business and industry, and transport and cities, and marks a step forward in communications strategies that spark energy-efficiency actions worldwide. 

Electric_buses.jpg

Powering Healthcare Nigeria Market Assessment and Roadmap

Case study
roadmap Nigeria

The Powering Healthcare Nigeria Market Assessment and Roadmap was developed by Sustainable Energy for All (SEforALL), under the Power Africa-funded Powering Healthcare Africa Project, to provide the Government of Nigeria and its development partners with a data-driven overview and practical recommendations for planning and coordination of electrifying the country’s underserved health facilities. The document consists of stakeholder and interventions mapping, data analysis, technology assessment, funding and financing mechanisms, and delivery models.  

It was developed in coordination with the Rural Electrification Agency (REA), the National Primary Health Care Development Agency (NPHCDA), USAID Nigeria Power Sector Program (NPSP), and USAID Integrated Health Program (IHP). 

Country

Nigeria

Powering Healthcare Impact Factsheet

Case study
healthcare factsheet

Energy access and health are connected in many ways, but COVID-19 has emphasized the importance of energy specifically in the ability to provide quality healthcare. While electricity is recognized as a prerequisite for health services, it can be difficult to measure the extent of its impact on improved health outcomes. This can be attributed to not only the numerous social, economic, cultural, and physical factors that influence health, but also the critical lack of data on health facilities’ electrification status, needs, and the impact on service delivery.

SEforALL’s new Powering Healthcare Impact Factsheet, supported by Power Africa and the Health and Energy Platform of Action (HEPA), aims to add clarity to this pathway between reliable electrification of health facilities and improved health outcomes by compiling existing research and publications that examine health outcomes through lenses such as: service delivery, maternal care, diagnosis and preventative care, and patient and provider satisfaction. The factsheet further highlights the impact of powering health facilities on the other Sustainable Development Goals and calls for increased activity and investments on research and data availability that can inform policymakers and project implementors.

Increasing Energy Access in Sierra Leone

Case study
Sierra Leone report cover

Mini-grid survey analysis on tariffs, subsidies and productive use

The purpose of this study is to provide practical guidance and recommendations to the Government of Sierra Leone for the sustainable development of the country’s mini-grid sector by building upon lessons learned from the ongoing Rural Renewable Energy Project (RREP) as well as from mini-grid sector development in Nigeria. 

Important lessons can be learned from the two countries with respect to their mini-grid policy and regulatory frameworks, market development approaches, and potential options for agricultural productive use of electricity (PUE) to facilitate both mini-grid electrification and rural economic development.

The report, prepared by GreenMax Capital Advisors, also compares and highlights lessons learned from mini-grid sector development in Nigeria. Specifically, the report focuses on:

  • Mini-grid policy and regulatory environment (with a focus on tariffs and subsidies)
  • Mini-grid productive use applications in the agricultural sector
  • Mini-grid site selection criteria

Energizing Finance: Financing for Gender-focused Energy Access

Case study
Energizing Finance Gender cover

Development finance for the energy sector with a gender equality objective has remained low (only 9 percent of all energy sector development finance in 2018) in recent years, in contrast to the proportion of development finance for other sectors.

Sustainable Development Goals (SDGs) 5 and 7 are inextricably linked, as a lack of energy access disproportionately affects women and girls in the form of health, productivity, unpaid labour, and employment burdens. Both SDGs are also inextricably linked to climate change, which likewise disproportionately affects women and girls who represent a majority of the world’s poor and who are more dependent than men on local natural resources facing risk of depletion (UN WomenWatch).

In Energizing Finance: Understanding the Landscape 2019, SEforALL, for the first time, assessed public sector finance for energy projects targeting women and girls, and discussed strategies to reduce gender inequality in and through the energy sector. This study, published in Energizing Finance: Understanding the Landscape 2020, updates the figures and proposes a framework for donor countries to improve the accuracy and consistency of reporting finance with a gender equality objective.

See also: Energizing Finance series

 

This report is part of the series:  Energizing Finance

Energizing Finance: Clean Cooking in Bangladesh

Case study
Energizing Finance Bangladesh cover

Despite more than 55 percent of the population using traditional cookstoves, the current landscape of Bangladesh offers a conducive market for clean cooking technologies, driven by increasing incomes, urbanization, and favourable government support.

Clean cooking access remains a pernicious problem affecting billions of people across the globe. Yet we show that of the little finance committed for clean cooking in 2018, it mostly benefitted just one country: Bangladesh. This case study - published in the research report Energizing Finance: Understanding the Landscape 2020 - provides insights into how the country has attracted finance and the challenges it faces in converting finance into impact for its citizens.

In Bangladesh, the eighth most populous country in the world, more than 60 percent of the population currently lives in rural areas and is mainly dependent on agriculture as a primary source of income (World Bank). As of 2018, almost 80 percent of households (of a total 35 million households) lacked access to clean cooking alternatives. This includes both rural and urban areas (CCA).

Following its partial success in 2013, the new National Action Plan for Clean Cooking in Bangladesh (2020–2030) is currently being formulated. The plan aims to achieve 100 percent clean cooking access by 2030 and posits a total investment requirement of USD 2.9 billion over the next 10 years.

The new National Action Plan for Clean Cooking must promote innovative business and financing models for different technologies, while ensuring an enabling environment with easy access to supply- and demand-side financing.

See also: Energizing Finance series

This report is part of the series:  Energizing Finance

Energizing Finance: Impacts of Policies on Electricity Financing in Rwanda

Case study
Energizing Finance Rwanda cover

Rwanda’s strong policy frameworks for on-grid and off-grid electrification, cost-effective tariff structures, and restructuring of utilities have been instrumental in increasing electricity access.

This case study - published in the research report Energizing Finance: Understanding the Landscape 2020 - explores how robust domestic policies have contributed to increased electricity access in Rwanda, by measuring electricity sector commitments against Rwanda’s performance in the World Bank’s Regulatory Indicators for Sustainable Energy (RISE) index. RISE is a benchmarking tool designed to quantify and compare national policy frameworks against three pillars: electricity access, renewable energy and energy efficiency.

Rwanda, despite not being a high-impact country (HIC), has shown significant energy sector transformation with accompanying increases in energy access and investment, which can help inform smart policymaking in the HICs. In fact, Rwanda was one of the top three fast movers globally in electricity access between 2010 and 2017, where electrification rates even outpaced population growth. Following changes in its energy sector policies and regulatory frameworks, Rwanda scored higher than the average of other low-income Sub-Saharan African (SSA) countries in 20 out of 28 RISE indicators.

This report is part of the series:  Energizing Finance

Electrification rates in Rwanda and other low-income Sub-Saharan countries

Source: The World Bank 2019.
Note: As per the available RISE data, the 23 countries representing Sub-Saharan low-income countries in this study are Benin, Burkina Faso, Burundi, Central African Republic, Chad, Congo (DR), Eritrea, Ethiopia, Guinea, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Senegal, Sierra Leone, Somalia, South Sudan, Tanzania, Togo, Uganda and Zimbabwe.

See also: Energizing Finance series

Country

Rwanda

Programme

Energy Finance