Determinants that influence the implementation of infrastructure development projects in renewable energy sector in Kenya: A case Of Kenya Electricity Generating Company Limited

Abstract

The energy sector is one of the most important, requiring a substantive shift in energy production from fossil fuels into renewable energy (RE). The increasing global and local impact induced by fossil fuels has instigated policy and technical support towards the use of RE technologies as an alternative to reduce the threats (IPCC, 2007). Drastic changes are happening and the commercial viability of RE technologies is currently at a turning point; they are fast becoming attractive due to various environmental, social and economic reasons. Despite the importance of renewable energy there is dearth empirical evidence on the factors that influence the implementation of renewable energy development projects in Kenya. A descriptive survey research design was used to obtain data. The target population of this study was the top, middle and lower management staff of KenGen. Stratified random sampling was used to pick 30% of the target population. The sample size for the study included 72 respondents. The researcher used primary and secondary sources of data for this study. The primary data was obtained from the respondents through a structured questionnaire comprising of closed and open-ended questions. Descriptive statistics was used to analyze the data. The study concludes that KenGen’s organization culture supports implementation of renewable energy development projects. The study further concludes that KenGen is striving to bring about change in its operations. It can further be concluded that KenGen finances renewable projects by use of equity and debt. The Stakeholders involvement influences the implementation of renewable energy development projects as depicted by the study. The study further concluded that KenGen has innovative edge on renewable energy as it allocates intensive resource on technology development. The study finally concludes that the cost of renewable energy in KenGen has drastically reduced because of technological advancement in efficiency under mass production. The study recommends timely release of funds as a way to ensure completion of projects within the stipulated time. The study further recommends use of asset backed securities to raise funds such as the use of steam as collateral to raise capital from the market. The study further recommends use of high level technological improvements in mega projects so as to make use of various sources to generate electricity from hydro, geothermal and wind. This can be achieved by raising financial resources from local and external sources geared towards geothermal, solar and wind. Also implement projects that are geared towards renewable energy. Further recommendation would be to invest in R&D for renewable energy studies by partnering with global institutions that design, manufacture and trade in renewable energy plants globally.