The political economy of mini-grid electricity development and innovation in Kenya

Abstract

Accessible and affordable energy services are a prerequisite for socioeconomic growth and poverty reduction. Yet it is estimated that 600 million people in sub-Saharan Africa will not have access to electricity in 2030. Recent research suggests that universal access to electricity will be achieved through a mix of centralized and decentralized systems and that the diffusion of these technologies is a socio-technical process involving multiple actors. These actors include firms, networks, energy users, and government agencies that interact within a political landscape to deliver innovation within energy service systems. Thus, factors related to the political economy can impact the process of innovation and warrant analysis. This study aims to provide an analysis of the political economy factors that can influence the emergence of mini grid electricity development in the African context exemplified in Kenya as a case study. The study uses the Technology Innovation Systems (TIS) lens as an analytical framework to provide a critical analysis of how political economy factors have influenced the development of mini grid electricity in Kenya. The result shows that despite the presence of some favorable conditions for innovation, political economy factors significantly impede the deployment of mini grids in Kenya. Power and vested interests have created negative competition between public and private developers, limiting knowledge and information diffusion between actors and stalling mini grid developments where they are most needed.