Economy
UK-Kenya Renewable Energy Conference
Kenya’s renewable energy sector is on the cusp of big things. With a Government committed to a 5000Mw plan by 2017; an established feed-in-tariff; and an increasing demand for electricity as industrialisation continues at pace, the conditions are set for geothermal, wind and solar power to take off in a big way.
Two main forces are driving this change.
First is the enviable economic growth that Kenya has enjoyed in recent years, and is forecast to maintain in the future.
Rapid economic growth will drive greater demand for power: from businesses, to produce goods and services; and from consumers as they buy more TVs, fridges, freezers and other goods.
Kenya already has a renewable-rich energy mix, and is looking to continue this.
The second driver is that global climate change policy is stimulating increased take up of renewable energy around the world. This is leading to extraordinary and enormous economies of scale and efficiencies.
Last year the Paris climate negotiations sent a clear message to the world – to governments, to businesses, investors and citizens – that the future is low carbon. It created a surge in market demand for renewable energy.
You would expect rising demand to drive prices up. But technology and innovation are doing the opposite, so increasing demand further. In the world of computers we’re familiar with Moore’s law: namely that processing speeds for computers will double every two years, with prices falling. We’re seeing something similar in renewables. 30 years ago, wind turbines were generally rated around 50kw. 15 years ago we were getting used to 2000kw (2Mw) turbines. Now, in the North Sea, we’re expecting 8Mw monsters offshore.
Prices are falling similarly: solar panels now make up less than half the cost of the average PV installation. My Deputy High Commissioner is still fuming at the £13,000 he paid to put 4kw on his roof in 2011 – something that might now cost only £5,000. Offshore wind costs are another example of this. The UK agreed a strike price of £140 per Mw/hour for offshore wind as recently as 2014. In the Netherlands the most recent auction saw suppliers coming forward to supply offshore wind for just £70 per Mw/hour.
As a result of these changes, the UK now has three times more offshore wind – over 5000 Mw – than the entire generating capacity of the Kenyan grid. UK installed solar capacity – and let’s face it, the UK isn’t a sunny country – is over 10Gw – a 1400% increase on as recent as 2011.
As innovation pushes costs down, the implications for Kenya are clear. Renewables will not simply be environmentally beneficial, but economically advantageous. In time, they will push out hydrocarbons.
The UK and Kenya are together at the vanguard of this renewable energy, clean technology and innovation revolution. Kenya has one of the most active renewable energy sectors in Africa – second only to South Africa in terms of investment. The UK is a global leader in many of the sectors for which Kenya has greatest demand, as well as leading the way in innovative new technology such as wave power, tidal stream, pump storage and grid-scale flow batteries.
Kenya has set ambitious targets to boost its energy mix as part of the Energy Pillar in Vision 2030. As it continues to strive with regional competitors like Ethiopia, it wants to keep energy costs down. Renewables will enable this. And UK companies should be at the heart of this. From project development to design, finance and investment, legal and security, R&D and consulting; to grid development, transmission and distribution – UK companies have the expertise to help Kenya achieve success.
The energy market of tomorrow will – and must – look fundamentally different to yesterday. Out goes an industry dominated by giant utilities; a monopoly of centralised energy models. In comes a new, diverse market; driven by innovation, with an entrepreneurial, dynamic set of market participants. Put simply, new actors, new investors, new technology.
Let me say something about how all this connects to Kenya’s development agenda, of which the UK is such a strong supporter. A reliable electricity supply is one of the most powerful tools for helping people lift themselves out of poverty. Yet two out of three people in Sub-Saharan Africa are currently living without electricity access.
Twenty years ago, there was a nine month wait in Kenya for a monopoly provided land telephone line. Then Safaricom arrived on the scene. In just ten years we have seen a total transformation of the way in which Kenyans communicate – the mobile revolution. Now we need – and I am convinced that we will see – a similar revolution in access to affordable clean energy over the next ten years.
This will require governments, investors and aid agencies to tear down regulatory barriers and attract new finance. It will require us to develop markets where lower costs for renewable energy filter through to consumers because of genuine competition between suppliers.
The private sector has an opportunity to show the way in turning development challenges into business opportunities. A few years ago, seed funding from UK Aid working with Vodaphone and Safaricom helped create a mobile payment platform called M-PESA. Today that platform processes nearly half of Kenyan GDP, and means three in four Kenyans have access to the financial system.
This is the kind of country where those transformational things can be done. Let’s work together to make them happen.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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