15 Steadfast for East Africa: Powering Energy Dreams …
451
South Africa—9%
Ethiopia—7%
The above therefore reveals that Kenya’s economy is growing at a highspeed rate. This implies that the country and the East African region at
large will require more energy for industrialization and economic growth.
Hence, how can this rising tide lift all the boats? There are ambitious
targets to meet the energy demand in Kenya. For instance, according to
the National Electrification Strategy, Kenya has set a target of achieving
universal electricity services to all households and businesses by 2022 at
the acceptable quality of service levels. To meet this target, the country
has not only invested in various energy infrastructure, but it has also set a
target to produce 100,000 barrels of oil per day from 2022 and develop
2275 MW of geothermal capacity by 2030. Despite the energy transition
debates, the country has hopes of utilizing its oil and gas resources. These
hopes are shared by other countries in the region including Uganda,
which is endowed with 6.5 billion barrels, about 2.2 billion of which
is recoverable; and South Sudan which has the third-largest oil reserves
in Sub-Saharan Africa (SSA).
This chapter, therefore, looks at the regional electrification efforts in
East Africa. The chapter has three sections, this being the introduction.
Section 15.2 highlights the key issues with respect to energy investments;
Sect. 15.3 analyses the Integrated feed-in-tariff structure for the East
African Community; Sect. 15.4 gives the concluding remarks.
15.2 Energy Investments in East Africa:
Issues of Concern
Energy projects are very expensive ventures requiring enormous capital,
and as such energy investors are often concerned about protecting
their investments, hence they look out for countries with a favourable
legal and regulatory frameworks (Cameron, 2017). The main issues
of concerns for the investors, therefore, include fair laws with provisions that protect both local and foreign investments; favourable fiscal
451
South Africa—9%
Ethiopia—7%
The above therefore reveals that Kenya’s economy is growing at a highspeed rate. This implies that the country and the East African region at
large will require more energy for industrialization and economic growth.
Hence, how can this rising tide lift all the boats? There are ambitious
targets to meet the energy demand in Kenya. For instance, according to
the National Electrification Strategy, Kenya has set a target of achieving
universal electricity services to all households and businesses by 2022 at
the acceptable quality of service levels. To meet this target, the country
has not only invested in various energy infrastructure, but it has also set a
target to produce 100,000 barrels of oil per day from 2022 and develop
2275 MW of geothermal capacity by 2030. Despite the energy transition
debates, the country has hopes of utilizing its oil and gas resources. These
hopes are shared by other countries in the region including Uganda,
which is endowed with 6.5 billion barrels, about 2.2 billion of which
is recoverable; and South Sudan which has the third-largest oil reserves
in Sub-Saharan Africa (SSA).
This chapter, therefore, looks at the regional electrification efforts in
East Africa. The chapter has three sections, this being the introduction.
Section 15.2 highlights the key issues with respect to energy investments;
Sect. 15.3 analyses the Integrated feed-in-tariff structure for the East
African Community; Sect. 15.4 gives the concluding remarks.
15.2 Energy Investments in East Africa:
Issues of Concern
Energy projects are very expensive ventures requiring enormous capital,
and as such energy investors are often concerned about protecting
their investments, hence they look out for countries with a favourable
legal and regulatory frameworks (Cameron, 2017). The main issues
of concerns for the investors, therefore, include fair laws with provisions that protect both local and foreign investments; favourable fiscal