Why solar power systems hold key to cheaper energy in Kenya

The climate change conversation about transitioning from fossil to renewable energy sources goes beyond the environment to economics. The energy sector is at a crossroads and for most users, the discussion is single-mindedly economic.

This is not to underplay the environmental points. Households feel the impact of reduced disposable income and increased cost of living, especially lower-income families.

Businesses feel the direct impact on operational expenses and the assumption that they pass on the cost to consumers is not the full picture. The bigger issue pertains to depressed profitability, investment, job creation and taxes.

Since this was a major issue during the recent demonstrations on inflated cost of living, the unsustainable scenario is attributable to the among other factors, dependence on thermal power, limited or fluctuating hydropower resources, geographical challenges, aging infrastructure, high taxes and levies, and currency volatility.

Sources of renewable energy

As a result, while the global average cost of electricity ranges between $0.1- 0.15 per kilowatt-hour (kWh), in Kenya, the figure averages 0.21-0.26 $/kWh. These inflated costs have put Kenya at a disadvantage, when compared to most Common Market for East and Southern Africa (COMESA) economic trade bloc countries that have more affordable and stable electricity pricing.

Addressing this requires a multifaceted approach, including deepening investment in abundant sources of renewable energy. Solar energy has received tremendous tailwinds from the climate change narrative. In business, transformational growth can come from a major policy shift and technological revolution.

Solar is riding the wave of both to the crest. Geographically, Kenya is located near the Equator which gives it high solar insolation levels, with solar radiation levels ranging between 4-6 kWh/m²/day. This makes solar energy not only feasible but also highly efficient. Unlike fossil fuels, whose prices are subject to global market fluctuations, sunlight is free. 

Recently, Saudi Arabia unveiled the Saudi Arabia Red Sea Project, the world's first city fully powered by 100 per cent renewable energy along the Red Sea coast for which Huawei is providing a complete set of equipment and consulting services, including 400 MW PV inverters, 1.3 GWh ESSs, and transformer stations.

Greener energy sources

The faith to undertake such a massive solar project by the Saudi government is a testimony to the belief in the power of the sun, which Kenya has in abundance. Kenya has made significant strides in renewable energy, and solar power can further contribute to reducing the country’s carbon footprint.

As global pressure mounts to transition to greener energy sources, solar offers a viable path for Kenya to meet its environmental commitments while reaping economic benefits. What is more, the cost of solar panels and related technology has been on a steady decline over the past decade. 

With its vast solar resource, Kenya’s solar sector can provide an alternative to traditional energy sources. With continued investment, supportive policies, and technological advancements, solar energy could lead to a future where Kenyans enjoy affordable, dependable, and sustainable power.

The time to harness this potential is now, as Kenya stands on the brink of an energy revolution to power its development for decades to come.

Mr Lusson is the Vice President of Huawei Digital Power Eastern-Africa