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Title: Institutional influence on power sector investments: A case study of on- and off-grid energy in Kenya and Tanzania

Journal Article · · Energy Research and Social Science

With the recent decline of renewable energy technology costs—most notably solar photovoltaics —off-grid energy systems are becoming increasingly attractive alternatives to grid extension for advancing rural electrification in Africa. However, there are institutional challenges to wider adoption of off-grid solutions. Combining a multi-level perspective with project funding data from the Kenyan and Tanzanian energy sectors, we assess the extent to which these new off-grid technologies have been incorporated into the existing energy regimes in both countries. Using a qualitative assessment of academic literature and official documents, and a quantitative assessment of energy investments, we find that although international development agencies have provided financial support for niche, off-grid companies, both global donors and the regime electricity sector operators in Kenya and Tanzania continue to favor on-grid and grid extension activities. While landscape influences on both countries are similar, we find that differences within the institutional regimes result in different development pathways for off-grid niches. In Kenya, unbundling and privatization efforts have attracted private investment in both on- and off-grid projects. Finally, Tanzania has more relaxed regulations for off-grid power producers, and a clearer regulatory framework for allowing off-grid operators to impose cost-reflective tariffs, which creates a supportive environment for niche innovation.

Research Organization:
Hydropower Foundation, Littleton, CO (United States)
Sponsoring Organization:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Water Power Technologies Office
Grant/Contract Number:
EE0006506
OSTI ID:
1638635
Journal Information:
Energy Research and Social Science, Vol. 41, Issue C; Related Information: M. Babcock, R. E. Ciez, A. Loew, B. Sergi, J. Thornburg, and N. J. Williams, “Institutional Influence on Power Sector Investments: A Case Study of Distributed and Centralized Energy in Kenya and Tanzania”, Energy Research and Social Science: Special Issue on Energy Infrastructure and the Political Economy of National Dev, April 2018.; ISSN 2214-6296
Publisher:
ElsevierCopyright Statement
Country of Publication:
United States
Language:
English

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Figures / Tables (4)