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Analysis of the African Energy Live Data platform shows installed electricity generation capacity in East Africa is set to be boosted by nearly 15GW, as mega-hydroelectric projects finally come to fruition and renewables gain pace over the next five years. The project pipeline could grow even more quickly if the ambitious goals set out by Kenya and other governments are achieved.

The latest data from Kenya Power indicates that spare power capacity fell to just 4% in December, the first time in over a decade the reserve margin had slipped below 10%. The regulator is concerned and the authorities are eyeing up the potential for bigger imports from Ethiopia and possible gas supply from Tanzania or beyond, writes Neville Otuki in Nairobi.

UK-government backed investor Gridworks said on 20 December that it is investing up to $50m in small hydroelectric power (HEP) developer Virunga Power. Nairobi-headquartered Virunga develops and operates run-of-river HEP plants and grid infrastructure in rural communities in Eastern and Southern Africa.

London-headquartered developer Globeleq has signed a $72m debt funding agreement for its 35MW Menengai geothermal independent power project (IPP) in Nakuru county. A construction start is expected in Q1 2023, following financial close.

Energy leasing firm Solarise Africa (Solarise) has secured debt finance from a group of investors led by the Facility for Energy Inclusion (FEI), which it will use to grow its commercial and industrial (C&I) business in Africa.

Reports in the Kenyan press say Kenya Power (KPLC)’s deal for hydroelectric power imports with Ethiopian Electric Power (EEP) cannot be renegotiated for five years.

A consortium of Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation’s ONGC Videsh subsidiary have held talks discussions with Tullow Oil to acquire a 50% stake in the London Stock Exchange-listed independent’s Project Oil Kenya development.

Business leaders want to believe the ‘hustler nation’ promised by incoming president William Ruto will be marked by entrepreneurial vigour rather than spotty governance. Kenya has huge potential, but in an economy struggling with an enormous debt burden, grand visions such as a 100% renewable power sector by 2030 may be difficult to achieve, write Marc Howard and Jon Marks.

A move towards independent power transmission schemes being allowed to wheel power to private clients could prove a boon for commercial and industrial (C&I) developers. Panellists at the 20 September AIX Kenya roundtable predicted the environment will now become more favourable, following the election victory of William Ruto, after years when “we saw the government and utility push back on the C&I space owing to its revenue implications”.

Nigeria’s Starsight Energy and South Africa’s SolarAfrica have announced plans to merge in a deal which, if approved by regulators, will join two of Africa’s largest commercial and industrial (C&I) renewable power developers into a pan-continental player with a portfolio of over 220MW of operated and signed generation capacity.

Japan’s pledge to invest some $30bn in Africa over the next three years has underlined the Asian economic giant’s commitment to rapidly advance its relations, as well as to expand its presence, on a continent where Tokyo’s involvement has too often lagged behind other big nations.

Bboxx has concluded its acquisition of PEG Africa, giving the ­London-based firm access to four more African markets – Senegal, Côte d’Ivoire, Ghana and Mali – while it is also tying up with more major corporates, creating ventures with Orange in Democratic Republic of Congo and Unilever in Kenya.

State utility Kenya Electricity Generating Company (KenGen) has invited local and international consultants to conduct a feasibility study for green hydrogen (GH2), ammonia and fertiliser production.

Kenya’s incoming government will do well to learn from previous efforts to reform the electricity supply industry. It will be guided by a new energy white paper, which offers a roadmap to 2040 and which could help Kenya move towards upper-middle-income status. African Energy usually writes its own Views, but such is the plan’s importance that we asked a prominent industry player to assess the proposals and the industry’s direction of travel. The writer has asked to remain anonymous so as not to prejudice their position.

The draft Kenya Energy White Paper, published in July, set out an overarching approach to the country’s energy sector. The white paper was not designed as a formal policy document but rather one that proposed “the type of policies that will be needed to achieve the country’s energy objectives”.