GREEN ENERGY CAN HELP FUEL KENYA'S GROWTH

The most important determinant in making the transition to a Green Economy from the wasteful, polluting and ultimately unsustainable brown economy is energy where we find it, how we use it, how we recycle it is all that matters.

The world, as a whole, needs to be more efficient in its use of energy and needs to develop new, renewable sources if we are to lessen an excessive dependence on the fossil fuels - oil, gas and coal. Expanded use of geothermal power could be one major advance combining economic, social and environmental benefits needed for true sustainable development.

At a continental level, the energy sector in most parts of Africa is characterized by an acute energy crisis due to high oil prices, persistent droughts and unrivalled demand from unprecedented population growth.

To ensure consistency in energy production in Kenya, there is need to develop renewable energy systems that will help in creating energy independence and even a considerable new source of revenue. This can be done by utilizing a unique combination of solar panels, "biogas" generators, natural wastewater treatment plants, and wind turbines.

It is equally important to create a thriving renewable energy sector in the country that is self-sustaining and abundantly beneficial for the local economy, the environment, and the public.

In 1990s there was an outburst of energy policy changes around the world. Driven by economic, ecological, security and social concerns, energy regulation has been in great flux. As seen today, the world’s population is growing and is to reach 10 Billion people in 2050 according to Boyle, 1990 and also by end of 21^st century UN projection is that the population would be between 10 and 12 Billion people and all this will be there to depend on renewable energy.

According to Kenya Institute of Public Policy Research and Analysis study and analysis, 2010 of  energy consumption in Kenya most of households (52%) in Kenya use kerosene for lighting and 60% of households use biomass for cooking. The connectivity to electricity also varies from region to region; Nairobi 53.47%, Central 42.4%, North Eastern 14.5% and western 14.7% (ERC, 2010).

With rapidly growing demand for energy, the government has clearly identified renewable energy, such as solar, wind, and geothermal, as a reliable and sustainable way to increase energy supply.

From this case, renewable energy production has presented the potential for income and employment generation to many Kenyans. It has also encouraged private investment while minimizing environmental harm.

There is need to increase policies and create new policy tools that will aim at reducing  inefficiencies existing in conventional bidding processes for grid energy and encourage small players to participate in the development of the energy sector. There is also need to ensure that efforts are presented on exciting opportunities for new players in the market, including social entrepreneurs and impact investors hence growing market opportunity.

Renewable energy is important because of the benefits it provides. For instance, in the physical environment, renewable energy technologies are clean sources of energy that have a much lower environmental impact than conventional energy technologies. Moreover, it is an energy that will not run out ever. Other sources of energy are finite and will someday be depleted. Also, most renewable energy investments are spent on materials and workmanship locally to build and maintain the facilities, rather than on costly energy imports.

According to the government’s National Climate Change Response Strategy 2010, Kenya stands a chance to benefit from carbon markets by putting in place mitigation measures including the promotion of energy efficiency and renewable energy technologies.

It is imperative if the country is to meet the growing demand of energy and reap various benefits including reducing foreign expenditures on crude oil and other petroleum products. Kenya’s power capacity currently stands at about 1,500 MW compared to 40,000 MW in nearby South Africa. It is estimated that Kenya will need 10,000 MW of installed capacity by 2030 to meet peak demand.  Kenya’s population estimate by National Council for Population and Development is estimated to reach 73M by 2030. This is expected to   significantly reduce the cost of providing the Kenya’s energy needs. Further research is required  into  the  interaction  between  population size  and  other variables  which affect  the cost of energy provision, including development of more efficient technology and energy storage.

Increasing energy demand and constrained energy supplies are likely to impact how energy affects your business in the future.

If energy cost is increased the costs of basic commodities will go up, profits will be reduced due to high operating costs, there will be decline of sales of energy-using products, loss of competitiveness in energy intensive businesses and disruptions in supply chains as suppliers are unable to meet cost obligations or go bankrupt and therefore affecting growth in economy.

Kenya needs reliable energy to expand its industrialization sector through major projects like Konza Technology City, Lappset and Laptop project.

It is also vital if the renewable energy resources map is updated to reflect more emerging technologies. Easily accessible online information will potentially attract more investor interest in the region.