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Regulatory and policy risks: Analyzing the uncertainties related to changes in government policies, regulations, and incentives affecting solar power project development and operations in Kenya

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  • Keshavadasu, Siddartha Ramakanth

Abstract

This research paper examines the regulatory and policy risks associated with solar power project development and operations in Kenya. Through an extensive literature review, interviews with stakeholders, and case studies of solar power projects, the study identifies key uncertainties and challenges that affect the sector. The findings highlight several critical risks, including policy inconsistency, complex licensing and permitting processes, uncertainties in tariff structures and power purchase agreements, land acquisition challenges, and grid connection issues. The research underscores the importance of strengthening policy frameworks, streamlining regulatory processes, and enhancing transparency and predictability in tariff structures and power purchase agreements. The paper provides valuable insights for policymakers, industry experts, and project developers, emphasizing the need for stable policies, a streamlined regulatory environment, and clear guidelines to attract investment and accelerate the growth of solar power in Kenya. By addressing these risks, Kenya can unlock its solar power potential, contribute to sustainable development, and advance its renewable energy targets.

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  • Keshavadasu, Siddartha Ramakanth, 2023. "Regulatory and policy risks: Analyzing the uncertainties related to changes in government policies, regulations, and incentives affecting solar power project development and operations in Kenya," Energy Policy, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003452
    DOI: 10.1016/j.enpol.2023.113760
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    1. Karekezi, Stephen & Kithyoma, Waeni, 2002. "Renewable energy strategies for rural Africa: is a PV-led renewable energy strategy the right approach for providing modern energy to the rural poor of sub-Saharan Africa?," Energy Policy, Elsevier, vol. 30(11-12), pages 1071-1086, September.
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    1. Asuamah Yeboah, Samuel, 2024. "Navigating the Nexus: Overcoming Challenges in Public-Private Partnerships for Sustainable Building Initiatives in Developing Countries," MPRA Paper 122667, University Library of Munich, Germany, revised 05 Nov 2024.
    2. Maestrini, Marcelo & Vargas, Marco & Losekann, Luciano & Senra, Paulo Mauricio, 2025. "Energy transition and innovative choices of Brazilian electricity distribution utilities," Utilities Policy, Elsevier, vol. 95(C).

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