Corruption, Counterfeits Threaten Kenya’s Green Energy Drive

An announcement this week by prime minister Raila Odinga that the Kenyan government planned to provide free to the public energy saving light bulbs as part of efforts to address growing energy requirements is stirring the country’s alternative energy market.

A new trend marking a shift to alternative energy products by industry players is quickly emerging.

Stores are now stocking or ordering more of energy-saver bulbs and other lighting products especially from China or India, according to market watchers.

But availability of affordable LED lighting products in the east African nation could be compromised by cheap and inferior products brought into Kenya through corruption and a thriving black market for counterfeits from the two Asian countries.

This should definitely be a cause for worry for established manufacturers like Philips and Osram who are also major players in green off-grid lighting products for the African market.

But prime minister Odinga while unveiling a raft of measures towards adoption of greener energy strategies said the state was considering providing interest free, long-term loans to local investors for production of energy saving bulbs, solar water heaters and other energy saving devices within one year.

A new team formed to oversee Kenya’ s march toward green energy will be tasked with drawing an implementation plan for the LED bulbs exchange program.

The National Task Force on Accelerated Development of Green Energy has the mandate of forming a Green Energy Facility to offer long term loans to farmers and business to install solar, biogas and other renewable energy equipment.

More than one million energy saving bulbs will be distributed free of charge in exchange for regular bulbs that are being used by households, the prime minister announced.

“This is an immediate measure that is expected to save the country 49MW of power consumption.”

Kenya’s newest renewable energy initiative will be showcased at an International Green Energy Investor Conference to be held in Nairobi in mid September. The meeting will enhance Public-Private Partnerships for green energy projects, according to the prime minister.

Kenya has recently secured US$405 million loan to finance development of a wind power project. The financing of the Lake Turkana Wind Power Project (LTWP) will be facilitated by African Development Bank (AfDB), and will add an additional 300 megawatts of power into the national grid by 2012.

LTWP, the handler of the project, plans to provide the additional power to the national electricity grid by taking advantage of a unique wind resource in Northwest Kenya near Lake Turkana.

Ormat Technologies, Inc. the U.S. maker of geothermal power plants, also recently commissioned 48 MW third phase of Kenya’s a geothermal facility at Olkaria, about 85 miles from Nairobi.

Image credit: Jan Cantor/ Flickr