Ana Pueyo

The Political Economy of Investment in Renewable Electricity in Kenya

Kenya has been hailed as a successful sub-Saharan African country in attracting private investment for renewable energy. However, energy poverty remains very high, with connectivity rates lower than the average for sub-Saharan Africa and poor quality of supply for those connected. Several constraints persist to achieve universal access to clean and affordable electricity: high system costs, including a deficient transmission and distribution infrastructure; low rural demand and inadequate planning to meet it; and local opposition to large renewable infrastructure. This article considers the political economy of these constraints, explaining how they arose, which policies can address them and which actors back or oppose these policies. The overarching message is that a prominent state role is required to fund the network components of the electricity system and to reach the less profitable segments of society, namely the rural poor. However, this clashes with a dominant private sector-led narrative in the international development community.

Introduction: Overcoming the Constraints to Clean Electricity in Africa

The phenomenon of inadequate power supply in sub-Saharan Africa (SSA) has been a subject of great interest over the years because of its intractable nature and its importance for development; SSA accommodates about 55 per cent of the more than one billion people without access to electricity globally. Moreover, in many SSA countries, electricity access rates are decreasing because electrification efforts are slower than population growth. In recent years, however, certain SSA countries have demonstrated that with political will and access to appropriate finance, electricity access can be accelerated. The overwhelming calls for clean (green) energy sources into the energy mix cannot be overemphasised. Drawing from different disciplines, this IDS Bulletin provides new perspectives that go beyond the identification of obstacles to renewable energy development in SSA. The contents of these contributions underscore the complexity surrounding the clean electrification challenge in SSA; and demonstrate the benefits of a multidisciplinary approach in the design of interventions.

Clean Power for Africa: Overcoming the Main Constraints

Inadequate power supply in sub-Saharan Africa (SSA) means that only 37 per cent of sub-Saharan Africans have access to electricity. Those with access are prone to experience problems with regular power outages. In many sub- SSA countries, electricity access rates are decreasing because electrification efforts are slower than population growth. In recent years, however, some SSA countries have demonstrated that with political will and opportunities for appropriate finance, access to electricity can be accelerated. Alongside increased awareness in the international development community of the importance of energy for human development, the requirement for energy to be ‘green’ means that calls for the provision of clean, renewable energy sources cannot be ignored. The authors of this IDS Bulletin provide insights from power systems engineering, macroeconomics, microeconomics, and political economy on how to overcome constraints to green electricity in Africa. One of the biggest contributions of this issue is that is allows a dialogue between academics and practitioners that would not normally be published in the same journal. What also emerges as an underlying thread is the essential role of donors to achieve sustainable energy for all in Africa. The contributions to the IDS Bulletin underline the enormity of the clean electrification challenge in Africa, and demonstrate the benefits of a multidisciplinary approach where technical, economic, and political perspectives are involved in the design of interventions.