Decarbonising Kenya’s energy transition through resource-efficient solar energy business models
Abstract
Energy transition in Africa will constitute switching from the predominant model of centralised generation to decentralised generation from renewable energy and distributed storage. The installed capacity of solar photovoltaic in 2040 is expected to reach 320 GW, from 5 GW in 2019. In Kenya, the energy transition rests on the shift from a linear to a circular economy that adopts innovative business models for energy access, grid defection, decarbonisation, and decentralisation. The shift will reduce carbon intensity and environmental impacts and increase resource-efficiency of incumbent business models through the integration of product-service systems; digitalisation; circular value network; and circular finance. For example, greenhouse gas emissions from manufacturing, using and disposing of mini-grids, solar home systems, commercial and utility-scale systems can fall by over 10%, thereby contributing towards SDG 13 ‘Climate Action’. Likewise, depletion of metals and material constituents of solar energy systems can decrease by up to 60% due to high take-back schemes, higher recycling rates, and avoided extraction of virgin materials to promote resource efficiency in line with SDG 12 ‘Responsible Consumption and Production’. Besides, transforming incumbent business models will unlock circular investment and revenue streams within the value network and stimulate economic growth.
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