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East Africa Renewable Energy Market - Growth, Trends, and Forecasts (2023-2028)

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  • 100 Pages
  • April 2023
  • Region: Africa
  • Mordor Intelligence
  • ID: 5120260
UP TO OFF until Dec 31st 2023
The East Africa Renewable Energy Market is expected to grow at a CAGR of more than 6.5% over the forecast period.

COVID-19 negatively impacted the market in 2020. Currently, the market has reached pre-pandemic levels.

Key Highlights

  • Over the long term, factors such as increased environmental awareness and regulations and decreased cost per kilowatt of electricity generated are expected to boost the market.
  • On the other hand, the high price of renewable energy relative to fossil fuels is expected to restrain the market.
  • Nevertheless, new models of solar cells made of a thin film technology that uses narrow coatings of cadmium telluride in solar cells, which have higher efficiency and lower cost, may prove to be an opportunity in the sector.
  • Kenya is expected to be the fastest-growing renewable energy market in the region during the forecast period due to the government's supportive policies and rising investment in renewable energy projects.

East Africa Renewable Energy Market Trends

Hydropower Segment to Dominate the Market

  • The hydropower segment is expected to remain the largest segment in the market as dams have been built across East Africa. Most of the renewable hydro capacity has been constructed in Ethiopia and Mozambique.
  • The hydropower Segment includes different-sized reservoir dams that can be used to provide renewable energy. Hydropower is the most used renewable energy in East Africa.
  • Hydropower (including mixed plants) constitutes almost 78% of the total renewable energy generated in the region in 2021, around 8,726 MW. It is expected to remain the single largest renewable energy contributing segment in the forecast period.
  • The geographical features of the countries in the region aid in the creation of energy from hydropower. Due to the presence of physical structures like the Nile River, Mountains, and the great lakes.
  • Therefore, vast reservoirs of dams providing renewable energy are expected to continue to dominate the market due to their large size relative to other renewable energy and an increase in investments.

Kenya to Dominate the Market Growth

  • Kanya is expected to be the fastest-growing renewable energy market in the region during the forecast period, owing to factors like a number of upcoming projects combined with favorable government policies. As of 2021, the country had renewable energy installed capacity of about 2384 MW.
  • In July 2022, Kenya's Energy and Petroleum Regulatory Authority (EPRA) released a draft regulation to support introducing a net-metering regime for PV installations. The new rules will apply to PV systems up to 1 MW in size. It will help the country initially deploy around 100 MW of solar capacity.
  • In February 2022, the Emerging Africa Infrastructure Fund (EAIF), financed by the governments of the United Kingdom, the Netherlands, Switzerland, and Sweden, provided a USD 35 million, 15-year loan towards the USD 87 million costs of a 40MW solar project planned in Kenya.
  • In August 2022, the Kenyan government announced to start of the construction work of a solar photovoltaic power plant in Kisumu. The 40 MWp Kisumu Solar One Park will be built in Kibos on 100 hectares of land donated by the government.
  • Hence, Kenya is expected to dominate the market growth due to its significant installed renewable energy capacity increase in the forecast period.

East Africa Renewable Energy Market Competitor Analysis

East Africa Renewable Energy Market is moderately consolidated. Some of the key players in this market are (not in particular order) Voith GmbH & Co. KGaA, Kenya Electricity Generating Company PLC, Salini Costruttori S.p.A., Vergnet SA, Eleqtra Inc.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Renewable Energy Installed Capacity Forecast in GW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Hydropower
5.1.2 Solar
5.1.3 Wind
5.1.4 Others
5.2 Geography
5.2.1 Tanzania
5.2.2 Uganda
5.2.3 Kenya
5.2.4 Rest of East Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Voith GmbH & Co. KGaA
6.3.2 Kenya Electricity Generating Company PLC
6.3.3 Salini Costruttori S.p.A.
6.3.4 Vergnet SA
6.3.5 REDAVIA GmbH
6.3.6 Eleqtra Inc.
6.3.7 Hidroeléctrica de Cahora Bassa S.A.
6.3.8 Electricidade de Mocambique E.P.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Voith GmbH & Co. KGaA
  • Kenya Electricity Generating Company PLC
  • Salini Costruttori S.p.A.
  • Vergnet SA
  • Eleqtra Inc.
  • Hidroeléctrica de Cahora Bassa S.A.
  • Electricidade de Mocambique E.P.