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

Accessible and affordable energy services are essential for economic growth and reducing poverty. However, it is estimated that 600 million people in sub-Saharan Africa will still lack access to electricity by 2030. Research indicates that achieving universal access to electricity will require both centralized and decentralized systems. The spread of these technologies involves many different players, including businesses, networks, energy users, and government agencies, all working together within a political landscape to bring about innovation in energy services. Political and economic factors can influence this innovation process and need to be analyzed.

This study focuses on understanding how political and economic factors affect the development of mini grid electricity in Africa, using Kenya as a case study. It uses the Technology Innovation Systems (TIS) framework to analyze these influences. The findings show that, although there are some positive conditions for innovation, political and economic factors significantly hinder the progress of mini grid development in Kenya. Power struggles and vested interests create competition between public and private developers, restricting the sharing of knowledge and information and slowing down the development of mini grids where they are most needed.