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Energy Transitions in Kenya's Tea Sector: A Wind Energy Assessment
Proceedings of the 19th International Sustainable Development Research Conference (2013)
  • Erik Edward Nordman, Grand Valley State University
Abstract
Kenya’s tea sector provides livelihoods for more than 500,000 farmers but energy access in the region remains limited. Clean, affordable distributed energy systems could transform the tea-growing regions by lowering tea production costs and increasing farmer profits. On-site generation could power tea factories and enhance grid stability by reducing electricity draw from the grid. Wind power’s potential in Kenya’s tea regions is unknown. A pre-feasibility study using the Solar and Wind Energy Resource Assessment (SWERA) dataset revealed that 29 percent of Kenya’s tea farms have wind resources that could be suitable for development. There were more “moderate”-rated tea farms west of the Rift Valley, but tea farms east of the Rift Valley had greater wind resources. Economic analysis using RETScreen found that wind power in the eastern region had a positive net present value (NPV) under a wide range of assumptions. In the base case, a 750 kW wind turbine with a capital cost of US$1.5 million (US$1,984/kW) at the most suitable tea farm had an NPV of US$515,779. Tea farms west of the Rift Valley had negative NPVs in the base case but turned positive under more optimistic assumptions. SWERA data are conservative and may underestimate the wind resource at some locations. End use demand in the tea sector is driving the transition to distributed, renewable energy in Kenya’s tea growing regions. Whether this development can catalyze a positive feedback loop with spillover benefits to energy-poor rural communities remains to be seen.
Keywords
  • Kenya,
  • wind energy,
  • tea farms,
  • energy transitions,
  • economics
Publication Date
2013
Citation Information
Erik Edward Nordman. "Energy Transitions in Kenya's Tea Sector: A Wind Energy Assessment" Proceedings of the 19th International Sustainable Development Research Conference (2013)
Available at: http://works.bepress.com/erik_nordman/28/