The renewable energy market in East Africa is poised for significant growth. Incentive policies, in the form of feed-in-tariffs, have been introduced in several East African countries, which should provide the impetus for the roll-out of renewable energy projects in the region.
New analysis from Frost & Sullivan (energy.frost.com), Strategic Analysis of the Renewable Energy Market in East Africa, predicts that strong economic growth in East Africa will drive greater demand for electricity, both on- and off-grid. This should present an enticing opportunity for project developers and financiers alike in a largely undeveloped market. The research covers Kenya, Ethiopia, Tanzania, Uganda and Rwanda.
"Growth in the renewable energy market is being driven by the pressing need for both on and off-grid generation capacity across the region," noted Frost & Sullivan's Energy & Power Research Analyst, Gareth Blanckenberg. "Renewable energy presents an attractive solution for the region, due to its relatively fast build times and the interest it can generate from private project developers."
Escalating electricity demand across the region will require a significant expansion in electricity generation capacity. This will create opportunities for participation by renewable energy project developers.
However, the lack of robust policies and incentive schemes has previously served as a disincentive to investment in the East African renewable energy market.
"The East African region has abundant natural resources suitable for renewable energy electricity generation, particularly geothermal and solar," remarked Blanckenberg. "In addition, several newly instituted programmes to incentivise renewable energy generation will promote market development."
Within the East African region, there are pockets of stability that have the natural resources as well as the feed-in-tariffs required to ensure the successful development of large scale renewable energy projects Investments in renewable energy projects on the continent have already quadrupled recently; with most of this investment being in East Africa.
If you are interested in more information on this study, please send an email with your contact details to Samantha James, Corporate Communications, at samantha.james[.]frost.com.
Strategic Analysis of the Renewable Energy Market in East Africa is part of the Energy & Power Growth Partnership Service programme, which also includes research in the following markets: Overview of the Moroccan Electricity Industry: Main Challenges and Opportunities, Strategic Overview of the Egyptian Electricity Industry and, Strategic Overview of the Ghanaian Electricity Market: 2011 Update. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Strategic Analysis of the Renewable Energy Market in East Africa / M808-14