AEO2019_KENYA
AEO2019_KENYA
AEO2019_KENYA
Outlook 2019
Overview:
Kenya
English version
www.iea.org/reports/africa-energy-outlook-2019
The European
Commission also
participates in the
work of the IEA
How Africa meets the energy needs of a young, fast growing and increasingly urban
population is crucial for the continent’s – and the world’s – economic and energy future.
One-in-two people added to the global population between today and 2040 is set to be
African, and by 2025, Africa’s population exceeds that of both India and China. The
continent’s urban population is set to grow by more than half a billion over that period,
much higher than the growth seen in China’s urban population during the country’s two-
decade economic and energy boom. These profound demographic changes are set to drive
economic growth, infrastructure development and, in turn, energy demand.
Five years since its first special report on Africa, the International Energy Agency (IEA) has
updated and upgraded its work in this new World Energy Outlook Special Focus. This
reflects not only Africa’s increasing importance in global energy affairs but also the
deepening relationships between African energy decision makers and the IEA. This report,
the most comprehensive to date, contains a unique richness of data and analysis. The
centrepiece is a set of detailed, comprehensive outlooks covering 11 sub-Saharan
countries1 that were developed in consultation with our African partners.
Thanks to natural resource endowments and technology improvements, Africa could
pursue a much less carbon-intensive development model than many other parts of the
world have. The challenges and opportunities differ widely across a diverse continent. But
renewables, together with natural gas in many areas, are poised to lead Africa’s energy
consumption growth as the continent moves away from the traditional use of biomass that
currently accounts for almost half of final energy consumption.
Africa’s energy prospects depend on the way that government policies shape investment
flows and the availability and affordability of modern energy sources. Our analysis is
based on two scenarios:
The Stated Policies Scenario reflects our measured assessment of today’s policy
frameworks and plans, taking into account the regulatory, institutional, infrastructure
and financial circumstances that shape the prospects for their implementation.
The Africa Case is built on the premise of Agenda 20632, the continent’s inclusive and
sustainable vision for accelerated economic and industrial development. Faster
economic expansion is accompanied by the full achievement of key Sustainable
Development Goals by 2030. These include full access to electricity and clean cooking
and a significant reduction in premature deaths related to pollution.
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1
These are: Angola, Côte d’Ivoire, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Mozambique,
Nigeria, Senegal, South Africa and Tanzania.
2
Agenda 2063 was adopted in 2015 by the Heads of State and Governments of the African Union; it is the
continent’s strategic framework that aims to deliver inclusive and sustainable development.
Executive Summary
Africa drives global trends, but a lack of access persists
Whichever pathway Africa follows, the continent becomes increasingly influential in
shaping global energy trends. Growing urban populations mean rapid growth in energy
demand for industrial production, cooling and mobility. Energy demand in Africa grows
twice as fast as the global average, and Africa’s vast renewables resources and falling
technology costs drive double-digit growth in deployment of utility-scale and distributed
solar photovoltaics (PV), and other renewables, across the continent. With the growing
appetite for modern and efficient energy sources, Africa emerges as a major force in global
oil and gas markets. As the size of the car fleet more than doubles (the bulk of which have
low fuel efficiency) and liquefied petroleum gas (LPG) is increasingly used for clean cooking,
oil demand grows by 3.1 million barrels per day between today and 2040, higher than the
projected growth in China and second only to that of India. Africa’s growing weight is also
felt in natural gas markets and the continent becomes the third-largest source of global gas
demand growth over the same period.
A critical task for policy makers is to address the persistent lack of access to electricity
and clean cooking – and the unreliability of electricity supply. These have acted as brakes
on the continent’s development. Nearly half of Africans (600 million people) did not have
access to electricity in 2018, while around 80% of sub-Saharan African companies suffered
frequent electricity disruptions leading to economic losses. In addition, more than 70% of
the population, around 900 million people, lack access to clean cooking. The resulting
household air pollution from traditional uses of biomass is causing 500 000 premature
deaths a year. It also contributes to forest depletion resulting from unsustainable
harvesting of fuelwood, as well as imposing a considerable burden and loss of productive
time, mostly on women.
The momentum behind today’s policy and investment plans is not yet enough to meet
the energy needs of Africa’s population in full. In the Stated Policies Scenario, 530 million
people still lack access to electricity and nearly one billion have no access to clean cooking
in 2030. The continent’s ambition to accelerate an industrial expansion continues to be
hampered in many countries by unreliable energy supply. Only a handful of countries –
including South Africa, Ethiopia, Ghana, Kenya, Rwanda and Senegal – are successful in
reaching full access to electricity by 2030. Solid biomass remains a mainstay of the energy
mix as a primary fuel for cooking as clean cooking policies lag population growth and
premature deaths related to inhaling fumes from cooking end up only 2% below today’s
level by 2040.
the average number of people gaining access per year from around 20 million today to over
60 million people. Grid expansion and densification is the least cost option for nearly 45%
of the currently deprived, mini-grids for 30% and stand-alone systems for around a quarter.
investment and maintenance to reduce power outages, a major obstacle to enterprise, and
to decrease losses from 16% to a level approaching advanced economies (less than 10%
today). In addition, some large power-sector projects – especially for hydropower – require
Executive Summary
regional integration to go ahead: they would not proceed if assessed only on domestic
needs. That means building up the regulation and capacity to support Africa’s power pools
and strengthen regional electricity markets.
Africa needs a significant scale-up in electricity sector investment in generation and grids,
for which it currently ranks among the lowest in the world. Despite being home to 17% of
the world’s population, Africa currently accounts for just 4% of global power supply
investment. Achieving reliable electricity supply for all would require an almost fourfold
increase, to around $120 billion a year through 2040. Around half of that amount would be
needed for networks. Mobilising this level of investment is a significant undertaking, but
can be done if policy and regulatory measures are put in place to improve the financial and
operational efficiency of utilities and to facilitate a more effective use of public funds to
catalyse private capital. Developing the technical and regulatory capacity to support sector
reform policies, as well as Africa’s own financial sector, is also critical to ensure a sustained
flow of long-term financing to energy projects.
Case (close to the global average today). However, the growth in production is considerably
higher than the rise in demand, and Africa – led by Mozambique and Egypt – emerges as a
major supplier of LNG to global markets.
appropriate regulations on the type of equipment used for cooling, this would create a very
strong increase in electricity demand. Increased frequency and intensity of extreme
weather events such as droughts and floods is set to lead to more variability in generation
Executive Summary
output, notably hydropower. In Zambia, for example, a severe drought in 2015 led to a
drop in output at the largest hydropower plant, resulting in power blackouts. Uncertainty
over the impact of climate change on the region’s hydrology underlines the need to build
up a diverse power mix and enhance regional connections. Planning and investment
decisions for energy infrastructure need to be climate resilient. Outside the energy sector,
Africa’s ecosystems already suffer disproportionately from climate change and are exposed
to increased risks to food, health and economic security.
The whole report, all its results, as well as the data underlying each figure, are
available online for free. In this leaflet, we present the regional profile for sub-
Saharan Africa (excluding South Africa) and the country profile of Kenya.
11 focus countries for the Africa Energy Outlook by share of sub-Saharan African
primary energy demand
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This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of
international frontiers and boundaries and to the name of any territory, city or area.
Drastic efficiency improvements, in part due to the accelerated move away from solid
biomass, result in primary energy demand being lower in the AC than in the STEPS
even though GDP is 60% higher in the AC.
Supply from natural gas and renewable sources expand in both scenarios to meet
rising demand for energy as the sub-Saharan economy expands.
Electricity access and clean cooking facilities for all are achieved by 2030 in the AC.
Other low-carbon
800 16 Solar PV
Hydro
600 12 Gas
Oil
400 8 Coal
GDP (right axis)
200 4
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1
Excluding South Africa.
1 500
1 000
500
Today’s power mix, dominated by hydro, gradually diversifies as solar PV and natural
gas increasingly make inroads into the power system. In the STEPS, the combined
share of solar PV and natural gas reaches the level of hydro by 2040.
In the AC, natural gas (27%) passes hydropower (26%) as the largest source of power
supply by 2040 while the share of solar PV rises to 24%.
In the STEPS, the main grid connects around 70% of the 230 million people gaining
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electricity access by 2030, alongside decentralised options for the remainder in more
remote areas. In 2030, 530 million people remain without access.
In the AC, decentralised solutions are the least-cost option for more than two-thirds of
the 530 million additional people connected by 2030 to reach full access.
Productive uses
300
Transport
200 Residential
Demand changes
100
Higher GDP
and access
Efficiency gains
2018 2040 2040 2018 2040 2040
STEPS AC STEPS AC
Figure 6.1E ⊳ Sub-Saharan Africa fuels & technologies used for cooking
5% 9%
8% 17% 14%
5% 26%
15% 37%
8%
4%
50%
65% 37%
Charcoal Other solid biomass Coal and kerosene Improved cookstoves LPG Other clean
In the STEPS, more people gain access to clean fuels and technologies for cooking by
2030, but 70% of the population still lack access.
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To bridge the gap and achieve full access to clean cooking for all in the AC, liquefied
petroleum gas (LPG) is the most scalable solution for urban settlements, with
improved biomass cookstoves doing most to provide access in rural areas.
50 4 200
25 2 100
Rapidly growing oil demand and stagnating domestic oil production reduce net oil
exports in the STEPS; exports are further reduced by faster economic growth in the AC.
Gas demand and production increase by 2040 in the STEPS, but both grow more
rapidly in the AC and the region becomes a major supplier of gas to global markets.
Stated Policies
Africa Case
Fuel production Oil Gas
Power Fossil fuels Renewables Networks
Access to electricity to clean cooking
In the STEPS, $1.8 trillion of cumulative energy supply investment is needed, with
upstream oil and gas and power each accounting for around half of this.
The AC requires 80% more capital with a stronger emphasis on power sector
investments, including a doubling of spending in renewables and electricity networks.
More efficient use of energy across end-use sectors such as fuel economy standards
for cars and two/three-wheelers, building codes for new buildings, and more efficient
industrial processes and efficiency standards for appliances and cooling systems would
support wider economic development and offset growth in energy demand.
In the AC, Kenya could supply an economy six-and half times larger than today using
little more than twice its current energy consumption, if it were to move away from
bioenergy and improve energy efficiency.
Two-thirds of Kenya’s energy currently comes from bioenergy. This share shrinks to
15% by 2040 in the AC thanks to increased use of geothermal resources and oil.
Other low-carbon
Solar PV
50 1.0 Hydro
Gas
Oil
Coal
25 0.5 GDP (right axis)
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60
30
Coal Oil Back-up generators Gas Hydro Wind Solar PV Bioenergy Geothermal
Kenya is one of the few countries to develop geothermal energy: by 2040, it accounts
for almost 50% of Kenya’s power generation in the STEPS.
The sevenfold increase in electricity demand in the AC relies on expansion of
geothermal production (an increase to 4 GW) and new solar PV and gas capacity.
Figure 6.7C ⊳ Kenya electricity access solutions by type in the Africa Case
Kenya has seen one of the fastest increases in electrification rates within sub-Saharan
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Africa since 2013: by 2018, 75% of the population had access.
Kenya aims to reach full access by 2022; the grid would be the principal least-cost
solution for the majority of the population (mainly in the south) still lacking access.
Productive uses
15 Transport
Residential
10
Demand changes
5
Higher GDP
and access
Efficiency gains
2018 2040 2040 2018 2040 2040
STEPS AC STEPS AC
Oil remains by far the dominant fuel in end-use sectors, and its use triples in road
transport in the AC, with five million additional vehicles being added to the fleet.
Electricity demand reaches nearly 70 TWh in the AC, as light industry grows and as
ownership of household appliances and cooling systems increases; efficiency standards
avoid a further 8 TWh of demand.
2% 6% 9% 13%
9% 19%
17%
12%
23% 58%
25% 40%
66%
1%
Charcoal Other solid biomass Coal and kerosene Improved cookstoves LPG Other clean
Today three-stone fires are still used for most cooking, fuelled mostly by charcoal in
urban areas and by wood in rural areas. In the STEPS, government initiatives lead to
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8 0.2 4
4 0.1 2
Kenya is not a notable oil and gas producer today, but it takes some steps to develop
its relatively modest resources.
Higher economic growth underpins strong growth in fossil fuel demand in the AC. Oil
demand almost triples as it expands its share of the overall energy mix.
Stated Policies
Africa Case
Fuel production Oil Gas
Power Fossil fuels Renewables Networks
Access to electricity to clean cooking
Energy investment amounts to around $60 billion through to 2040 in the STEPS, with
renewables and electricity networks accounting for half of this.
Investments in renewables and electricity networks need to double in the AC.
This publication reflects the views of the IEA Secretariat but does not necessarily reflect
those of individual IEA member countries. The IEA makes no representation or warranty,
express or implied, in respect of the publication’s contents (including its completeness or
accuracy) and shall not be responsible for any use of, or reliance on, the publication.
Unless otherwise indicated, all material presented in figures and tables is derived from IEA
data and analysis.
This publication and any map included herein are without prejudice to the status of or
sovereignty over any territory, to the delimitation of international frontiers and boundaries
and to the name of any territory, city or area.
The paper used has been produced respecting PEFC’s ecological, social and ethical standards