East Africa Renewable Energy Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 6.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
East Africa Renewable Energy Market Analysis
The East Africa Renewable Energy Market is expected to grow at a CAGR of more than 6.5% over the forecast period.
COVID-19 negatively impacted the market in 2020. Currently, the market has reached pre-pandemic levels.
- Over the long term, factors such as increased environmental awareness and regulations and decreased cost per kilowatt of electricity generated are expected to boost the market.
- On the other hand, the high price of renewable energy relative to fossil fuels is expected to restrain the market.
- Nevertheless, new models of solar cells made of a thin film technology that uses narrow coatings of cadmium telluride in solar cells, which have higher efficiency and lower cost, may prove to be an opportunity in the sector.
- Kenya is expected to be the fastest-growing renewable energy market in the region during the forecast period due to the government's supportive policies and rising investment in renewable energy projects.
East Africa Renewable Energy Market Trends
This section covers the major market trends shaping the East Africa Renewable Energy Market according to our research experts:
Hydropower Segment to Dominate the Market
- The hydropower segment is expected to remain the largest segment in the market as dams have been built across East Africa. Most of the renewable hydro capacity has been constructed in Ethiopia and Mozambique.
- The hydropower Segment includes different-sized reservoir dams that can be used to provide renewable energy. Hydropower is the most used renewable energy in East Africa.
- Hydropower (including mixed plants) constitutes almost 78% of the total renewable energy generated in the region in 2021, around 8,726 MW. It is expected to remain the single largest renewable energy contributing segment in the forecast period.
- The geographical features of the countries in the region aid in the creation of energy from hydropower. Due to the presence of physical structures like the Nile River, Mountains, and the great lakes.
- Therefore, vast reservoirs of dams providing renewable energy are expected to continue to dominate the market due to their large size relative to other renewable energy and an increase in investments.
Kenya to Dominate the Market Growth
- Kanya is expected to be the fastest-growing renewable energy market in the region during the forecast period, owing to factors like a number of upcoming projects combined with favorable government policies. As of 2021, the country had renewable energy installed capacity of about 2384 MW.
- In July 2022, Kenya's Energy and Petroleum Regulatory Authority (EPRA) released a draft regulation to support introducing a net-metering regime for PV installations. The new rules will apply to PV systems up to 1 MW in size. It will help the country initially deploy around 100 MW of solar capacity.
- In February 2022, the Emerging Africa Infrastructure Fund (EAIF), financed by the governments of the United Kingdom, the Netherlands, Switzerland, and Sweden, provided a USD 35 million, 15-year loan towards the USD 87 million costs of a 40MW solar project planned in Kenya.
- In August 2022, the Kenyan government announced to start of the construction work of a solar photovoltaic power plant in Kisumu. The 40 MWp Kisumu Solar One Park will be built in Kibos on 100 hectares of land donated by the government.
- Hence, Kenya is expected to dominate the market growth due to its significant installed renewable energy capacity increase in the forecast period.
East Africa Renewable Energy Industry Overview
East Africa Renewable Energy Market is moderately consolidated. Some of the key players in this market are (not in particular order) Voith GmbH & Co. KGaA, Kenya Electricity Generating Company PLC, Salini Costruttori S.p.A., Vergnet SA, Eleqtra Inc.
East Africa Renewable Energy Market Leaders
-
Voith GmbH & Co. KGaA
-
Kenya Electricity Generating Company PLC
-
Salini Costruttori S.p.A.
-
Vergnet SA
-
Eleqtra Inc.
*Disclaimer: Major Players sorted in no particular order
East Africa Renewable Energy Market News
- August 2022: Masdar signed an agreement with TANESCO, a Tanzanian company, to develop a 2 GW renewable energy capacity. In this agreement, the project would be set in two phases; in the first phase of the collaboration, the company would generate approximately 600 MW; in the second phase, the total renewable capacity would reach 2,000 MW.
- May 2022: Rwanda signed a deal with Goldsol II, a consortium between three companies, to install a new solar power plant in the Kayonza District. The plant will have a capacity of 10 MW and will be built at USD 30 million.
East Africa Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Renewable Energy Installed Capacity Forecast in GW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Hydropower
5.1.2 Solar
5.1.3 Wind
5.1.4 Others
5.2 Geography
5.2.1 Tanzania
5.2.2 Uganda
5.2.3 Kenya
5.2.4 Rest of East Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Voith GmbH & Co. KGaA
6.3.2 Kenya Electricity Generating Company PLC
6.3.3 Salini Costruttori S.p.A.
6.3.4 Vergnet SA
6.3.5 REDAVIA GmbH
6.3.6 Eleqtra Inc.
6.3.7 Hidroeléctrica de Cahora Bassa S.A.
6.3.8 Electricidade de Mocambique E.P.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
East Africa Renewable Energy Industry Segmentation
Renewable energy is energy collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, water movement, and geothermal heat.
The East Africa Renewable Energy Market is segmented by type and geography. By type, the market is segmented into hydropower, solar, wind, and others. The report also covers the market size and forecasts for the renewable energy market in major countries. For each segment, the market sizing and forecasts have been done based on installed capacity (GW).
| Type | |
| Hydropower | |
| Solar | |
| Wind | |
| Others |
| Geography | |
| Tanzania | |
| Uganda | |
| Kenya | |
| Rest of East Africa |
East Africa Renewable Energy Market Research FAQs
What is the current East Africa Renewable Energy Market size?
The East Africa Renewable Energy Market is projected to register a CAGR of 6.5% during the forecast period (2024-2029)
Who are the key players in East Africa Renewable Energy Market?
Voith GmbH & Co. KGaA , Kenya Electricity Generating Company PLC, Salini Costruttori S.p.A., Vergnet SA and Eleqtra Inc. are the major companies operating in the East Africa Renewable Energy Market.
What years does this East Africa Renewable Energy Market cover?
The report covers the East Africa Renewable Energy Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the East Africa Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Renewable Energy in East Africa Industry Report
Statistics for the 2024 Renewable Energy in East Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Renewable Energy in East Africa analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
