Kenya: The World’s Microgrid Lab report shows the global microgrid market is ready for significant private investment. While there still remain some challenges – especially around the regulatory framework and aggregation of projects – there are now enough businesses with viable business models to provide early stage, strategic or even crowd investors with commercially attractive opportunities.
“The medium-term growth potential for the microgrid market in Kenya, as well as in other energy access markets including in Africa, South and Southeast Asia, is very high,” TFE Consulting writes in the executive summary of its report. According to TFE, a $1.5 billion microgrid market opportunity exists in Kenya over the next five years.
Specifically:
- There are more than 65 microgrids up and running in Kenya
- The cost of building out and delivering microgrid power in Kenya has dropped to $5-10/watt
- Customers are willing to pay $4/kWh
- Per capital GDP rose to $1,377 as of 2015
- 25 million mobile phone users made 6 billion mobile money transactions in Kenya in 2016, transferring nearly $150 million every day.
- Mobile money makes up almost 67 percent of all (cashless) transactions via the National Payments System, according to the Central Bank of Kenya.
Get the full report.