Barriers to Financing Renewable Energy Technologies (RETs) in Kenya

African Centre for Technology Studies (ACTS)

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Abstract: For renewable energy technology (RET) to achieve strong market potential, policy frameworks and financial instruments that give finance institutions the necessary assurance and incentives to shift investment interest away from conventional energy options to renewable energy are necessary. To solve finance related barriers, all actors in non-conventional energy industry require full information disclosure and transparency. This research has grouped these actors into financiers (banks and cooperatives), cook stove production SMEs (manufacturers and sellers), end-users (individual households and institutions) and promoters (NGOs and research institutions). Information asymmetries among these players make the industry unattractive to financiers. NGOs and research institutions play an important role in RET industry by bridging the information gap that exists among financiers, SMEs and endusers.