Economics of Renewable Energy
The Economics of
Renewable Energy in Kenya
1.0 BACKGROUND
1.1 Introduction
The Kenyan economy will increasingly feel the impact of the Government’s commitment to reducing carbon emissions, including targets for greater use of energy from renewable sources. The Government describes its targets for renewable as challenging; others have suggested they are unachievable. In any event, the effort to meet them will come at a cost and, if not properly managed, risks distracting attention from other means of reducing emissions. It seems timely, therefore, to examine the economics of renewable energy. We take as a given the Government’s wish to reduce carbon emissions; we do not address how far such reductions are justified as a contribution to a world-wide effort.
Targets have focused the spotlight on renewable rather than other means of reducing emissions such as energy efficiency or greater use of nuclear power. The EU is committed to a binding target that 20% of its energy consumption should be from renewable sources by 2020. Individual states’ contributions to the overall target are still only proposals and some remain a matter of dispute.
Kenya's Investment Plan (IP) for the Scaling-Up Renewable Energy Program (SREP) funding is showing how far Kenya has reached at the moment. The IP is in line with the national renewable energy development strategy as set in the Least Cost Power Development Plan (LCPDP), Rural Electrification Master Plan, Sessional Paper No. 4 of 2004 (The energy policy document), the Energy Act of 2006, the Feed-in Tariff (FiT) Policy, the Kenya National Climate Change Response Strategy and Kenya Vision 2030 (the National economic development blueprint).
Kenya is one of the six pilot countries selected to benefit from SREP. The SREP program will support Kenya's initiatives towards achieving a transformational change that will lead the country towards low greenhouse gas (GHG) emission development pathway by harnessing the abundant
Renewable Energy in Kenya
1.0 BACKGROUND
1.1 Introduction
The Kenyan economy will increasingly feel the impact of the Government’s commitment to reducing carbon emissions, including targets for greater use of energy from renewable sources. The Government describes its targets for renewable as challenging; others have suggested they are unachievable. In any event, the effort to meet them will come at a cost and, if not properly managed, risks distracting attention from other means of reducing emissions. It seems timely, therefore, to examine the economics of renewable energy. We take as a given the Government’s wish to reduce carbon emissions; we do not address how far such reductions are justified as a contribution to a world-wide effort.
Targets have focused the spotlight on renewable rather than other means of reducing emissions such as energy efficiency or greater use of nuclear power. The EU is committed to a binding target that 20% of its energy consumption should be from renewable sources by 2020. Individual states’ contributions to the overall target are still only proposals and some remain a matter of dispute.
Kenya's Investment Plan (IP) for the Scaling-Up Renewable Energy Program (SREP) funding is showing how far Kenya has reached at the moment. The IP is in line with the national renewable energy development strategy as set in the Least Cost Power Development Plan (LCPDP), Rural Electrification Master Plan, Sessional Paper No. 4 of 2004 (The energy policy document), the Energy Act of 2006, the Feed-in Tariff (FiT) Policy, the Kenya National Climate Change Response Strategy and Kenya Vision 2030 (the National economic development blueprint).
Kenya is one of the six pilot countries selected to benefit from SREP. The SREP program will support Kenya's initiatives towards achieving a transformational change that will lead the country towards low greenhouse gas (GHG) emission development pathway by harnessing the abundant