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East Africa Power Market Size (2024 - 2029)

The East Africa power market is poised for growth, driven by increasing power demand from a rising population and a shift towards renewable and gas-based thermal power plants. Despite challenges such as insufficient investment in power infrastructure, the market's expansion is supported by urbanization and electrification efforts. The region is witnessing significant growth in hydro and non-hydro renewables, bolstered by investments and a focus on clean energy. Initiatives like the East Africa Power Pool are instrumental in developing power infrastructure, further contributing to the market's growth. Ethiopia, in particular, is expected to enhance its power generation capacity through investments in renewable energy, reducing its reliance on imported fossil fuels.

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Market Size of East Africa Power Industry

East Africa Power Market Overview
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 3.00 %

Major Players

East Africa Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

East Africa Power Market Analysis

The power market in the East Africa region is expected to grow at a CAGR of more than 3% in the forecast period of 2021-2026. The COVID-19 pandemic pandemic severely impacted on economies of African countries, because of their dependence economy of other countries, even though the impact of COVID-19 was less in the region than foreign nations. Factors such as increasing power demand due to the increasing population and the rapidly increasing share of renewable and gas-based thermal power plants are likely to drive the market. The degree of urbanization and electrification is also expected to drive power consumption. On the other hand, the lack of huge investments for setting up and modernizing power generation, transmission, or distribution networks is restraining the growth of the market.

  • Hydro and Non-Hydro Renewables are expected to witness significant growth in the region, owing to factors like increasing investments in the sector combined with increasing focus on producing clean energy.
  • The formation of organizations like East Africa Power Pool, which are focused on the development of power infrastructure in the region has helped the market grow in the past and are expected to continue to do so during the forecast period too.
  • Ethiopia is expected to witness significant growth in terms of power generation capacity among the nations in the forecast period due to its significant consumption of electricity and government focus to decrease dependence on imported fossil fuel. The country is also expected to invest in renewable energy projects, which is likely to aid in the growth of the market.

East Africa Power Industry Segmentation

The East Africa Power Market report includes:

Sector
Power Generation
Thermal
Hydro and Non-Hydro Renewables
Power Transmission and Distribution
Geography
Kenya
Ethiopia
Tanzania
Uganda
Rest of East Africa
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East Africa Power Market Size Summary

The East Africa power market is poised for growth, driven by increasing power demand due to population growth and urbanization, alongside a shift towards renewable and gas-based thermal power sources. Despite the challenges posed by the COVID-19 pandemic and limited investments in infrastructure, the market is expected to expand, supported by initiatives like the East Africa Power Pool, which aims to enhance regional power infrastructure. Ethiopia is anticipated to lead in power generation capacity growth, focusing on reducing fossil fuel dependence and investing in renewable energy projects. The region's geographical features, such as the Nile River and Great Lakes, facilitate significant hydropower generation, which remains the dominant renewable energy source.

The Hydro and Non-Hydro Renewables segment is expected to experience substantial growth, with hydropower continuing to be the largest contributor to renewable energy in the region. The declining costs of solar panels and batteries are also boosting the solar energy sector's expansion. Ethiopia's ambitious projects, including the Grand Ethiopian Renaissance Dam and multiple solar plants, are set to enhance the country's energy capacity and reduce energy deficits. The market is moderately consolidated, with key players like Kenya Electricity Generating Company and Ethiopian Electric Power leading the charge. Initiatives such as smart meter installations and geothermal power projects further underscore the region's commitment to advancing its power sector.

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East Africa Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Power Generation Installed Capacity and Forecast, in GW, till 2026

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Assesment of Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Sector

      1. 2.1.1 Power Generation

        1. 2.1.1.1 Thermal

        2. 2.1.1.2 Hydro and Non-Hydro Renewables

      2. 2.1.2 Power Transmission and Distribution

    2. 2.2 Geography

      1. 2.2.1 Kenya

      2. 2.2.2 Ethiopia

      3. 2.2.3 Tanzania

      4. 2.2.4 Uganda

      5. 2.2.5 Rest of East Africa

East Africa Power Market Size FAQs

The East Africa Power Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)

Kenya Electricity Generating Company PLC, Ethiopian Electric Power, Tanzania Electric Supply Company Limited, Kenya Power and Lighting Company PLC and Kenya Electricity Transmission Company are the major companies operating in the East Africa Power Market.

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