Small-scale renewable energy technologies in East Africa
Summary
The report examines the deployment of small-scale renewable energy (solar PV, wind, biogas, hydro) in East Africa, highlighting Kenya as the regional leader in market maturity and local content regulation. While off-grid solutions like solar home systems and mini-grids are expanding, the report identifies significant barriers to localisation, including a lack of local manufacturing, inadequate access to seed capital for SMEs, and fragmented institutional coordination. It recommends a regional approach to policy alignment, the development of e-learning platforms for vocational training, and the use of impact investment to build sustainable local value chains.
Key insights
- East Africa is a global leader in the uptake of small-scale solar technologies, accounting for approximately 70% of pico PV and solar home system (SHS) kits sold in sub-Saharan Africa during the second half of 2017, with Kenya being the largest market.
- Local manufacturing of renewable energy technology in East Africa is negligible, with the exception of small-scale wind turbines in Kenya. Consequently, imported technology accounts for roughly 70% of project costs, leaving only 30% of the total value for the local economy, primarily as labour.
- Kenya has the most advanced local content framework in the region, having published regulations in 2014 for the petroleum and electricity sectors that require licensees and contractors to ensure local content is part of their operations and to prioritise Kenyan citizens for employment.
- Tanzania is noted for having an exemplary regulatory system for Small Power Producers (SPPs) with capacities between 0.1 MW and 10 MW, providing clear, scale-specific regulations and standardised power purchase agreements that have attracted significant mini-grid investment.
- Uganda has successfully used the Global Energy Transfer Feed-in Tariff (GETFiT) programme to attract private investment for projects between 1 MW and 20 MW, though it lacks a formal local content requirement and faces challenges with onerous licensing and unclear grid-connection procedures for mini-grids.
- Zambia is at an earlier stage of policy development compared to its neighbours, having only recently implemented a Renewable Energy Feed-in Tariff (REFiT) at the end of 2017. It lacks a legal framework for mini-grid operation, and many such projects are not financially viable without public subsidies.
- A critical barrier to the growth of local SMEs in the renewable energy sector is the lack of access to seed and working capital, as traditional local banks often have prohibitive risk assessment and collateral requirements.
- There is a significant gap in high-calibre technical training for managing micro-grids and a general lack of business and financial management skills among entrepreneurs across all four reviewed countries.
- The report recommends a regional approach to avoid the duplication of activities among institutions and to align policies, standards, and certifications, which would improve the ability of these entities to attract long-term funding.
Cite the original document
- APA
- Hermanus, L., & Scholtz, L. (2018). Small-scale renewable energy technologies in East Africa. WWF South Africa. https://wwfafrica.awsassets.panda.org/downloads/wwf_2018_small_scale_renewable_energy_in_east_africa_an_overview.pdf
- Chicago
- Hermanus, Lauren, and Louise Scholtz. Small-scale renewable energy technologies in East Africa. WWF South Africa, 2018. https://wwfafrica.awsassets.panda.org/downloads/wwf_2018_small_scale_renewable_energy_in_east_africa_an_overview.pdf.
- Wikipedia
- {{cite report |last1=Hermanus |first1=Lauren |last2=Scholtz |first2=Louise |title=Small-scale renewable energy technologies in East Africa |publisher=WWF South Africa |date=2018 |url=https://wwfafrica.awsassets.panda.org/downloads/wwf_2018_small_scale_renewable_energy_in_east_africa_an_overview.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{hermanus2018smallscale, author = {Hermanus, Lauren and Scholtz, Louise}, title = {{Small-scale renewable energy technologies in East Africa}}, institution = {WWF South Africa}, year = {2018}, url = {https://wwfafrica.awsassets.panda.org/downloads/wwf_2018_small_scale_renewable_energy_in_east_africa_an_overview.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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