Artemis Kenya +254 20 231 5530

+254 20 231 5530
Tue, 9th Aug 2022

Energy plays critical role in any economy.  Given the significance of energy across all sectors of the economy, the cost and availability of energy are of major concern across developed, emerging and under-developed economies alike.

Unfortunately, the world continues to consume more energy than it is able to produce; to extract energy resources faster than it is able to replace them; and to exploit energy in ways that negatively impact on environmental sustainability.

This combination of energy-related human activity not only drives up the cost of energy, but also casts the grim picture of a destroyed planet not very long from now.

Leading concerns in the energy sector over time have shifted to the efficient utilization and management of energy resources, as well as exploration into alternative and renewable energy sources including solar, hydropower, geothermal and wind energy among others.

Perhaps the biggest challenge in the energy sector is the dwindling of renewable energy resources, and particularly crude oil, natural gas, coal, and uranium, which causes a major constraint to economic development across the world. 

In addition to this global concern, the energy sector in East Africa, is faced with several other challenges, key among which include the following:

  • Inadequate investment More
  • Access to electricity is a key socio-economic development driver, and africa is uniquely endowed with physical and geological features suitable for the prouction of this modern-day convenience, that is most importantly a renewable source of energy.

    Unfrotunately, inadequate funding in the energy sector, which has many times translaed into prohibitively high costs of accessing electricity, has meant that many families and businesss in East Africa continue to depend on non-renewable and environmentally unfriendly sources of energy.

    Access to electricity is still a major development challenge in much of Africa.  Kenya, for example, has a 121kilowatt hours per capita (compared to South Africa’s 4,595 kilowatt hours per capita) and in addition to the current situation, local demand for electricity is projected to reach 17,000MW by the year 2030

    Kenya’s unfulfilled demand for energy presents an array of opportunities for the investment in, and development of modern, innovative, clean and renewable energy sources.

  • Inadequate research on alternative energy sources More
  • East Africa's strugle to find alternative, sustainable, sources of energy remains a major challenge for African, and other governments across the world.  In Kenya, for example, the leading sources of energy are petroleum and electricity, while wood fuel provides energy needs of the majority of rural communities and for the urban poor.

    At the national level, wood fuel and other biomass account for approximately 68% of the total primary energy consumption, followed by petroleum at 22%, electricity at 9% and others, including coal at less than 1%.  The level of exploitation of organic sources of energy implied by these levels of dependence on organic energy sources is simply not sustainable.

  • Weak, inadequate or otherwise ineffective regulatory regime More
  • Energy and environmental legislation and regulatory framwworks across the world are comparatively weaker than most other legal and regulatory frameworks within the various jurisdictions.

    Article 2 of the United Nations Framework Convention on Climate Change (UNFCCC) gives UNFCCC's ultimate objective as "to stabilize the concentration of greenhouse gases in the atmosphere "at a level that would prevent dangerous anthropogenic  interference with the climate system".

    Despite over 190 countries having signed their commitment to this treaty, and with this commitment an udertaking to reduce greenhouse emissions to specific binding targets, many countries have neglected to follow up on their commitments, or reneged on their commitments altogether, with some even renouncing, for example, the Kyoto Protocol.

    Sustainable and environmentally firendly exploitation of energy resources can only be achieved with a greater and more concerted effort at strengthening the legal and regulatory framework governing energy sectors across the world in both industrialsied and developing economies. 

  • Climate change More
  • At an estimated 2.9 metric tonnes of carbon dioxide emissions per person per year, Africa is definitely within the lesser contributors to global warming and climate change.

    Notwithstanding, with many of Africa's countries' economies dependent on agriculture, tourism and on riparian, coastal, and other marine zones, all of which are climate-sensitive, the effects of climate change are bound to have a devastating effect on the continet's socio-economic survival.

    Kenya, for example, may have little historical or current responsibility for global climate change in addition to the fact that its emission of greenhouse gases (GHGs) is insignificant relative to the global average, but as the country develops towards middle income status,  the country's emissions of GHGs will increase significantly.  It is currently estimated that Kenya's emissions will double by 2030, with the dominant sources coming from the transport and agriculture sectors.

    The country’s current national power grid, fore example, serves just over 18% of the country’s population, with the remaining approximately thirty million using diesel, kerosene, firewood, charcoal and dry cell batteries.

    Over and above the anticipated economic gains from the development of clean energy sources, concern for environmental preservation gives development of geothermal and nuclear energy sources special importance to Kenya as a developing economy.  

    With a potential of between 7,000MW and 10,000MW, Kenya’s capacity for geothermal electricity, which, unlike other renewable sources of energy including hydropower, wind, and solar, is not dependent on the weather, is enormous.  Olkaria in the rift valley alone, is estimated to have a potential of over 1,000MW, with the current installed capacity being approximately 210MW only, while Menengai sites have potential for 560MW.  Three other capacity development sites in Olkaria are expected to deliver 240MW in Olkaria I and Olkaria IV, and 50MW in Olkaria III by 2014.

    Currently, geothermal sources account for only 15% of Kenya’s power generation mix, and it is projected that at last 45% of the country’s power output by the year 2018 will be geothermal.  By the year 2018, it is projected that hydropower will contribute 28% and geothermal 18%.

    Leading geothermal electricity producers include America, which produces 2,544MW of geothermal power, The Philipines, 1,931MW, Indonesia, 799MW and Italy 790MW.

    In addition, Kenya is also pursuing nuclear energy prospects, with the construction of a nuclear power plant expected to start in 2018 at a cost of Ksh. 366 billion (USD 4.3B), and which it is estimated will produce up to 1,000MW after it is commissioned in 2022.

    Through a public-private partnership deal with Africa Geothermal International Kenya (AGIL), Kenya intends to increase its geothermal capacity by over 140MW by the year 2018.

    Wind energy is also relatively underexploited despite the country’s several sites, already identified, surveyed and confirmed to be commercially viable investment opportunities.

These situations threaten the survival of many businesses within the energy sector and beyond, particularly where they may not have explicit sustainability strategies.

Our work within the energy sector draws from our capabilities in the following areas:

  • Strategy More
  • In the areas of strategy, we have worked with different organisations within the energy sector to develop corporate strategy and other interventions aimed at enhancing sustainability in the energy sector.

    Given the scope of investment and operations in the energy sector, we also, in addition to independent and organisation-specific strategic initiatives, we also model public-private partnersips (PPPs), through which stakeholders are able to give energy projects and other cross-cutting concerns concerted approaches.

  • Assurance More
  • Both routine operations and project avtivities within the energy sector are frequently executed in a project environment.  Our work in Assurance supports energy sector projects to guarantee achievement of desired objectives.

  • People performance More
  • Organisations in the energy sector are characteristically large and capital-intensive.  In this regard, whether in consideration of extraction, generation, storage, distribution or general management and administration of operations in the energy sector, we work with organisations in the energy sector to develop human resource capacity.

    Our learning and development work in the energy sector has focused on two main areas:  performance management; and learning and development.

Kenya national climate change action plan

In response to challenges and opportunities posed by climate change, the Republic of Kenya launched the National Climate Change Response Strategy (NCCRS) in 2010.


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